Interview with Eldur Olafsson, CEO of AEX Gold (TSX-V:AEX)

AEX Gold Inc. is a gold mining company with Greenland its sole focus. The company targets high-grade gold at its flagship Kaluna Gold Mine: 18g/t!

The key milestones for this gold explorer/developer is to finalise a possible PEA/FS, continue developing the Kaluna Gold Mine and arrange the financial side of the gold mine construction.

How will this play out? Are gold investors likely to be interested in the opportunity posed by AEX Gold? 

Company Page: https://www.aexgold.com/

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Interview with Ken Bicknell, President & CEO of AdTrack Media

Something a bit different for you today: not mining or natural resources. It's outdoor digital media! AdTrack Media has proprietary hardware and software "digital out-of-home media solution," that they install in the tunnel between stations for tubes, metros and subways. The hardware allows 'captive audience' consumers to watch video content. This opportunity allows AdTrack Media to have direct concession relationships with global subway systems. The company is a private advertising sales company.

Installing advertisements is "real estate that subway systems have not monetised in the past," and this opportunity applies internationally. AdTrack Media installs hardware on the tunnel wall between station. When the train is moving through the tunnel, it is full of individuals who are receptive to the entertainment advertising can provide. AdTrack Media's content is 100% advertising. The hardware is connected to a VPN, and all of the ads around the world are loaded from the company's network operating centre in Canada. Everything installed in the tunnel is designed and manufactured by AdTrack Media. The company has a unique technology that displays what looks like an 84 inch TV screen for less than 1% of what is perceived to be viewing area by the passenger riding in the tunnel. The company installs multiple devices through the tunnel, and this creates a full-motion video as passengers travel from image to image, so the people in the first carriage and the people in the last carriage all travel past it and get a full 10-second advertisement. All along the tunnel are stirps containing LED lights that are controlled from Canada. It's incredibly smart and makes a lot of sense.

What rules and regulations stand in AdTrack Media's way? Bicknell claims the subway advertising business is very mature. Within the transit authority environment, subway networks are pitched the new idea of in-tunnel advertising by AdTrack Media and are convinced to run an RFP or other process to enter into a concession agreement with them. For example, one of the most recent contracts in Europe was agreed within 6-months, so the lead-time is clearly not problematic. The business model is to build a global footprint, to get the local, national and international media buying advertisements. Bicknell is keen to avoid entering third-party agreements in the future, other than non-exclusive arrangements with third party brokers and sales reps. This is THE business model for the primary markets. For secondary markets, with political risk or smaller markets, the company will licence the technology and enter a third-party agreement with another party to accelerated the growth of AdTrack Media's global footprint.

Do advertising Outdoor Advertising Companies see AdTrack Media as a threat, or do they want to work with them. Bicknell says it is a combination of both. He acknowledges it is difficult for a company to enter the market and compete with some of the goliath media companies. However, he claims that AdTrack Media has broken the code by creating unique technology, which enables the company to go to subways/metros directly and take the tunnel portion of their media concessions. Smart.

Phase 1 has been completed: refining the hardware, installing it into various international geographies, and ensuring it works safely. What can investors expect for phase 2? Bicknell claims they have updated all the circuitry of the technology and has licenced off and installed in a huge number of places internationally. Aside from this, there are a number of metros also in the development pipeline. AdTrack Media is now at the point it is confident in its business model and is ready to push on with 140 system installations into the marketplace in the next 4-years. This will create a company that generates around US$55M of revenue annually. He expects to be a likely target for M&A.

What did you make of Ken Bicknell? 

Company Page: http://adtrackmedia.com/

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A Conversation with Brandon Munro, Uranium market commentator and CEO of Bannerman Resources (ASX:BMN)

Our weekly romp through the world of uranium with Brandon Munro, reveals that even in a relatively quiet week, there is much to discuss. Two potential large stories.

1. AOC says she is open, as is Joe Biden, to looking at nuclear as part of the solution for America's energy. This calms unsettled nerves within utilities as the US elections loom at the end of this year. It gives clues about budgets and eases investment decisions, although we doubt any investment decisions will be made until after the election.  

2. Is America trying to build and American Rare Earths Hub? Some big clues this week as Energy Fuels engages Constantine Karayannopoulos and Brock O'Kelley, two rare earth element industry experts who each have decades of experience producing commercially viable rare earth products, to aid in the development and implementation of commercial and technical REE strategies for the new US REE program. Karayannopoulous built and sold MolyCorp for c. $1.3BN, and currently runs Neo, one the world's largest downstream rare earths businesses. Something big is happening here.

We also discuss the parallels between uranium and rare earths. The geopolitics and global weaponising of access is becoming exacerbated.  

Company page: https://www.bannermanresources.com.au/

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Interview with Industry Commentator Mark Selby, CEO of Canada Nickel Company (TSX-V:CNC)

Following on from our recent interview to discuss his blossoming nickel exploration and development company, Selby is back to discuss the state of the nickel market.

First up, what is Selby's take on the global metals markets? Has the market bottomed out? He thinks in China the market has reached the bottom, based on various metrics. The latest data in China for copper, the largest metal by market volume, has seen the premium of the price in China at 18-month+ highs. Selby likes to use copper concentrate terms as a reference point for the wider market, because at these "inflexion points,". If the Chinese decide that the copper price is low and try to obtain as much as possible in any form: cathodes, concentrates, scrap etc. They just want copper on the way at today's price. Copper concentrate terms are currently at "multi-year lows." Time to get excited? Is this a sign to make metals investors feel bullish? There are significant Year-On-Year (YoY)increases in imports for a "bunch of materials."

What strategy will the Chinese government adopt? Play catch up with production or carry on as usual? Selby states that, based on several metrics, the Chinese government is trying to drive metal production via infrastructure and construction spending. 6-weeks ago, cables producers that feed this supply chain have been up over 100% of capacity. Anecdotally, he says that excavator sales are up 60% Year-On-Year. There is clearly a "big shove" happening to get the Chinese economy going again.

This is great for copper, but what about metals with different supply dynamics. He states that while speculation on a several hundred thousand tonnes of copper might be possible, it won't happen for bulk metals. Iron ore imports have been "rocketing" into China, and iron ore prices are at "very, very, very solid levels." The fact we are witnessing this sort of market behaviour in copper, bulk metals and in other economic indicators, this helps confirm that we are back on the way up. For nickel, Selby claims stainless prices are up year over year. Stainless steel inventories have come down a little bit, but they still have quite some way to go. In terms of a specific positive indicator for nickel, we are observing the price discount between nickel pig iron produced in China and nickel has closed a lot. On the supply side, all of the mines in the Philippines have been shut down, which has massively hampered nickel supply. We are seeing ore imports on the ground hitting multi-year lows in China.

Investors are now coming into the nickel space as evidenced by Canada Nickel's rising share price. Selby is hoping to capitalise on this with a U.S. listing for Canada Nickel: this is something that is definitely on the cards in the not-so-distant future.  

Company Page: https://canadanickel.com/

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Interview with Sam Ataya, President & CEO of Western Magnesium Corp. (TSX-V:WMG)

A green, scaleable solution to the magnesium conundrum?

Western Magnesium is a TSX-listed aiming to drive the American magnesium manufacturing industry, The company is focussed on becoming a global-scale, low-cost producer of eco-friendly and high-quality magnesium metal. Western Magnesium views magnesium as a strategic commodity. Let's explore the business model.

The aim is to bring magnesium production back into the United States, specifically for big industries: automotive, aerospace, military, environmental etc. the company has spent the last 9 years developing new technology for the production of magnesium metal that focussed on green technology: the plant will be closed to 0 waste and zero toxicity. The company is currently constructing its pilot plant; from the data and analytics at this plant, the company will build its large commercialised plant. Western Magnesium hopes to be fully-operational by 2026/27, producing magnesium metal.

Why is the company focussed on the United States? What was the opportunity the company spotted 9 years ago? Ataya states the answer lies in fundamentally rising magnesium demand. He states that magnesium is an extremely useful lightweight metal: 75% lighter than steel, 65% lighter than titanium, 35% lighter than aluminium. The environmental regulatory committees were moving towards stricter environmental practices, and it became obvious that more lightweight material would be in demand. In addition, in 1995, the Chinese decimated the U.S. magnesium industry by selling magnesium into the country. By 1997, 6000 casting companies had closed their doors, and this killed the industry, both in terms of development and funding. This sounds similar to the narrative we're hearing for uranium. cobalt and rare earths; can 'strategic' commodities make investors money?

ESG credentials have become more of a priority for investors and consumers who are assessing supply chains. Western Magnesium claims to be at "zero emissions." Just how green is the company? Ataya claims he doesn't use the same old batch processing techniques as other producers and claims his continuous processing technique stands above the rest.

Western Magnesium currently has enough money in the bank to give the company a "good runway" into its pilot plant buildout: 12-months at the current burn rate. He doesn't state an exact figure. Thus far, the money that has been raised is internal. The company is now ready to have conversations with institutional financiers because the buildout will take more money than the company has in the bank. Ataya states it is a case of knowing when to take money. He plans to negotiate calmly.

The company has started the design process for the pilot plant and has brought some engineering firms onboard. Western Magnesium is hoping the pilot plant will be up and running before the end of 2020, or by Q1/21 at the latest. The pilot plant is all about data and analytics for big consumers. Western Magnesium will receive their feedback and tailor the commercial plant accordingly. The pilot plant will have a CAPEX of US$10M, and the commercial plant will have a CAPEX of US$300-400M as a rollout.

What does the shareholder registry look like? Ataya claims to have a very diverse share register, with strong trading volumes despite COVID-19. For a speculative company, Ataya claims Western Magnesium has held its own via constant communication with shareholders. Insiders hold less than 3%. Ataya claims to not be "one of the biggest shareholders," but claims to be a "good shareholder." No specifics.

Moving forward, Western Magnesium is focussing on choosing a plant site for the commercialised reactor while focussing on the pilot plant.  

Company Page: https://westmagcorp.com/

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Interview with Terry Lynch, Co-Founder of Save Canadian Mining

We've had several companies mention naked shorting on our show in the last few months, and all of them believe they are suffering as a consequence of it. They are also at odds with the Canadian government's approach to either ignore it, or refuse to accept it is happening. Canadian mining stalwart, Eric Sprott, has also complained about the predatory practice. Rick Rule disagrees though! 

SaveCanadianMining.com is a movement to return market rules to the standards it held prior to the change in 2012.

In 2012, IIROC and CSA removed a trading rule known as the “tick test.” This restricted short selling to neutral or sales to positive price changes at the time of the sale.

Moreover, these changes were applied to the main listing venue of TSX-V Exchange and are equally applied across all 14 Canadian trading venues, reducing the TSX-V's ability to effect any change.

Since the removal of the tick test, Save Canadian Mining claims that the Canadian markets have evolved: there now exists a dynamic where short selling activities, high-frequency trading, and algorithms are exploiting the lack of a tick test to the detriment of Canada’s junior markets. Save Canadian Mining is calling on the CSA and IIROC to evaluate re-instituting the tick test. Lynch attributes this as a very big component behind why many junior mining companies have struggled to get funded in recent times. He states it would be a "hell of a lot easier to raise money in junior mining if the tick test existed."

Lynch claims that it's going to be an uphill battle against the big banks and lobbyists, but he claims all that he can do is "guerilla stuff." He's compiling a group of notable supporters like Eric Sprott and conducting events to bring exposure to the problem. He thinks this problem is benefiting offshore holding companies who don't pay taxes in Canada and this will help his cause.

Who needs to be punished for frontrunning and naked shorting? In the US, it is illegal. In Canada, Lynch argues it isn't 'technically' illegal. In Canada, you have 2-days to sell your stock. However, there is a +10-day exemption, creating a provision for clerical error. He claims if the Canadian government applied the rules, the problems would resolve themselves but they aren't. Stockbrokers are supposed to buy you in if you don't deliver your stock, so you have to foot the bill no matter what happens. Therefore, how is he hoping to capture the attention of the government? There are a number of huge names in the world of junior mining who are signed up, and Save Canadian Mining is trying to continue growing the cause by reaching out to other junior mining companies. Each company has put in around C$50,000 to help further the cause. He is aiming to raise around C$200,000 as a group, which will keep the group advocating until the end of the year. He wants to get Ontario on side, and he feels optimistic about this. If Ontario comes on side, Canada "will change." The primary argument appears to be regarding job security and the growth of junior mining companies in Canada.

Is there an argument for leaving things as they are? The primary argument is to "prevent fraud," but Lynch labels this PR piece as "complete bullsh*t!" He states the current Canadian government is pro-mining, despite having the most rigid environmental policies in the world.  

Company Page: https://savecanadianmining.com/   

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