Interview with Michael Carrick, nominated director for the board of AVZ Minerals

Recording date: 16th October 2023

In an exclusive video interview, Michael Carrick, the Chair of RTG Mining and now a nominated director for the board of AVZ Minerals, discusses pressing concerns within the company as part of the Make Manono Great Again (MMGA) initiative. Carrick addresses key issues such as corporate governance breakdowns, opaque disclosures, changes in Exploration License PR 13359 ownership, and concerns regarding the company’s extensive litigation proceedings.

The interview probes the recent Lubumbashi High Court ruling, revealing concerns about AVZ's transparency and urging a timely report to shareholders. Carrick touches on share sales by AVZ executives and risky aspects of AVZ's international arbitrations, stressing the need to restore stakeholder relations with Dathomir, Cominière, and the DRC government.

Looking forward, Carrick outlines the nominated directors' vision, calling for improved transparency, litigation strategy reassessment, and value rebuilding. The interview serves as a comprehensive overview of MMGA's plans, urging shareholders to watch and stay informed via MMGA's website.

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Learn more: https://cruxinvestor.com/companies/avz-minerals

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Interview with Stephen G. Ronan, President & CEO of Global Atomic Corp.

Our previous interview: https://www.cruxinvestor.com/posts/global-atomic-tsxglo-business-as-usual-while-negotiations-continue-3819

Recording date: 19th October 2023

Global Atomic Corporation (TSX:GLO) is a uranium development company with projects located in Niger, Africa. The company has uranium exploration permits covering over 5,000 km2 and operates the Dasa Project, which is currently under development. President and CEO Stephen Roman provided an update on the company's operations amidst the recent coup d'etat in Niger, and the project has strong government support as operations are continuing.

Dasa is a significant uranium deposit, with over 100 million pounds of indicated resources at a grade of 5,000 ppm U3O8. The company is working on an updated reserve estimate and mine plan which is expected to show a substantial increase in reserves. First yellowcake production is now anticipated in 2026.

The uranium market fundamentals remain strong, with spot prices over $70/lb again. Global Atomic represents a compelling investment opportunity, with its advanced asset, expanding resources, and potential alternative financing arrangements. Key upcoming catalysts are the updated reserves and mine plan, progress on financing, and a resolution of the political situation in Niger.

View Global Atomic's company profile: https://www.cruxinvestor.com/companies/global-atomic-corp

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Recording date: 19th October 2023

*What’s been happening*

Spot uranium is back through US$70/lb after dipping into the $60s. The market has digested Kazatomprom’s plan to increase production in 2025 and realized supply is still going to be hard to come by.

The world has been very distracted by the Middle East and Gaza the last 10 days. Even though there are no direct effects on the uranium sector that are immediately apparent, it has added to investor uncertainty. This uncertainty affects sentiment more broadly and has put a pause on uranium stocks.

*Winner of the week*

Bangladesh this week celebrated becoming the 33rd nuclear power producing country in the world as they received their first batch of uranium fuel for their first ever nuclear power plant.

Plans for a nuclear power plant in Bangladesh were proposed back in 1961. In 2007 the proposal of 2 units at Rooppur Nuclear Power Plant was put forward. By 2009 the government approved a Russian proposal and 2 years later in 2011 an agreement with Rosatom was signed to build at Rooppur.

Construction of the first unit commenced in 2017, with commissioning in 2023 and the second unit in 2018, with commissioning in 2024. Russia has financed 90% of the project costs.

https://www.dhakatribune.com/bangladesh/327151/bangladesh-receives-russian-uranium-to-join
https://world-nuclear.org/information-library/country-profiles/countries-a-f/bangladesh.aspx

*Bungle of the week*

Despite EU member states’ (including Germany) finally agreeing on the reform for the bloc’s electricity market, the German Greens party are still trying to derail the whole deal for the sake of preserving their sense of relevance maintained through irrational, unscientific opposition to nuclear power.

https://www.cleanenergywire.org/news/france-and-germany-claim-eu-deal-electricity-market-success-despite-unresolved-nuclear-questions

Interview with George Ogilvie, President and CEO of Arizona Sonoran Copper Company Inc.

Our previous interview: https://www.cruxinvestor.com/posts/arizona-sonoran-copper-ascu-low-risk-heap-leach-sxew-plus-growth-upside-2673

Recording date: 18th October 2023

Arizona Sonoran Copper Company (ASCUF) is developing the past-producing Cactus copper project in Arizona. The project includes multiple deposits with 7.4 billion pounds of copper resources. Approximately 5.2 billion pounds are amenable to heap leaching and solvent extraction electrowinning to produce copper cathode. 

Pre-feasibility study targeted for early 2024 is examining a 25+ year mine life producing 45,000-50,000 tons of copper cathode annually. There is potential to expand resources and production through exploration drilling between the known deposits. The company is working with new technology, Newton Column test, for enhanced leaching of primary sulfides which could further boost recoveries and mine life. 

With copper prices expected to remain strong long-term, Arizona Sonoran offers leverage to higher copper as the project advances towards a construction decision, targeting first production before the end of 2026.

View Arizona Sonoran Copper's company profile: https://www.cruxinvestor.com/companies/arizona-sonoran

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Interview with Justin Reid, CEO of Troilus Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/troilus-gold-tlg-advancing-gold-project-in-quebec-with-strong-financial-backing-3233

Recording date: 17th October 2023

Troilus Gold has announced a large increase to the mineral resource estimate for its past-producing gold-copper mine in Quebec. The new resource totals 13 million ounces of gold equivalent, with 11.2 million ounces in the indicated category. This represents substantial growth compared to the last estimate in 2020, thanks to extensive drilling by Troilus over the past four years.

According to CEO Justin Reid, the average grade stands at a respectable 0.69 g/t gold equivalent for indicated material. 99% of the resource is contained within open pit shells, given the project’s Brownfield location. This bodes well for lower-cost mining scenarios as Troilus advances feasibility studies and permitting.

New High-Grade Zones Discovered
Several new zones discovered in the past year have driven the resource expansion. Notably, the X22 zone uncovered 2.5km from the main orebody has grown rapidly from 600,000 ounces to over 2 million ounces. The first holes hit exceptional high-grade intercepts up to 30 meters of 4.3 g/t gold from surface. While most of Troilus’ mineralization follows a northeast-southwest trend, X22 sits along a cross-cutting structural zone. More exploration around X22 is warranted as Troilus looks to add resources in the future.

Incorporating these new high-grade zones has increased engineering complexity. As lower-grade material is encompassed in larger pit shells, the average grade drops below what Troilus initially envisioned for underground mining. For example, the X22-J zone-Connector zone will likely merge into one huge 3 by 1.5km pit. Despite the challenges, Troilus has completed sufficient metallurgy and geotechnics to incorporate the new zones into its upcoming feasibility study.

Feasibility Study On Track for Early 2023 Release
According to Reid, Troilus remains on schedule to publish the feasibility study results early next year. The base case scenarios examine a 35,000 tonne per day operation utilizing as much existing infrastructure as possible. This includes roads, power lines, tailings facilities and other items inherited from the past producing mine.

Leveraging this infrastructure is expected to keep capital costs below comparable projects. Reid suggests the existing infrastructure carries a replacement value around $500 million. Adding in typical industry cost inflation, he estimates the initial capital cost for Troilus will range from $600-700 million. Accounting for the infrastructure, Reid sees this as effectively a $1.2 billion project. By comparison, Equinox Gold’s Greenstone project of similar scale in Ontario is projected to cost over $1 billion.

Attractive Economics from Gold and Copper Production
The study will assess economics from both gold and copper recovery. Copper is expected to contribute 15-20% of revenue, although proportions vary by zone mined. The copper concentrate will assay approximately 17% copper, 140 g/t gold and 250 g/t silver. Reid anticipates strong demand and margins from concentrate sales, given declining global inventories. Troilus also benefits from acquiring a prior 2.5% royalty from First Quantum in 2020, further boosting potential profits.

Permitting Tracking Toward Mid-2023 Submission
On permitting, Troilus has already filed detailed project descriptions with regulators and completed substantial baseline work. The goal is to submit the full environmental impact assessment by mid-2024. Reid expects provincial permits first, followed by federal approval. He notes permitting timelines in Canada is difficult to predict but sees a clear path for Troilus as a Brownfield project with consistent community support.

Financing and Partnerships Under Discussion
As the technical work advances, Troilus has pivoted focus to financing options. Third parties are evaluating the resource as part of due diligence for potential debt solutions. Off-take agreements are under discussion for the copper concentrate output. While some early interest from royalty financiers exists, Reid views this as a last resort given the strong project economics.

Troilus hopes to announce a complete financing package in the first half of 2024, after the feasibility study and permitting milestones are met. A project of this scale, at over $1 billion, may require a producing partner to co-develop the asset. Reid reports active partnership talks are already underway, with deals in place at other projects like IAMGOLD’s Cote Lake and Equinox’s Greenstone. With Reid’s proven mine building experience, Troilus appears well-positioned to advance this emerging district-scale opportunity in mining friendly Quebec.
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View Troilus Gold's company profile: https://www.cruxinvestor.com/companies/troilus-gold

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Recording date: 17th October 2023

Has been 2 weeks since we last talked about the nickel market, and as expected market is trading down in the $18-$19,000 range and a few more thousand tonnes come on LME. Expect a further move over the next 6-8 weeks down to the $17,500 level before year-end as another 10,000 - 20,000 tonnes of nickel hits LME, and then rebound into year-end as EV demand re-accelerates and stainless production continues to build on recent strengths.

“Great convergence” well-underway – sulphate now back to par with briquettes, NPI discounts continue to narrow.

Rho Motion EV Sales - September 2023 Global EV sales reached a monthly record in September 2023 with over 1.3 million units, growing by 23% compared to the same period last year and 7% month-on-month, bringing YTD PC & LDV EV sales to 9.5 million. Sales in China have grown by 33% YTD, in EU & EFTA & UK by 27%, and in the US & Canada by 60%.

Was in London last week for LME week – always like it because you get to see producers, traders, and consumers in one time period to help understand the market. And then went to the US for a Stainless Steel conference.

Key LME week takeaways:
- Per the last session, nickel is in surplus but not as large as many are projecting as missing the in-process inventories.
- Cobalt market going to come under pressure from HPAL and new Chinese Congo projects
- Opportunity for meltshop growth in the United States

Nickel Industries buying 55% of Excelsior Nickel project which is an HPAL project – going to target low carbon footprint with power coming from sulphur burning for acid production and a 200 MW solar project. Projects built and operated by Tsingshan. 

ENC is expected to produce 72,000 metric tons per annum of contained nickel equivalent across the three major class 1 nickel products being mixed hydroxide precipitate (MHP), nickel sulphate and nickel cathode. ENC will be the first HPAL globally with the capacity to produce the three major class 1 nickel products,  Nickel Industries give only real public company view into Indonesian operations – use for ore grades, operating costs – will be good to have HPAL view of things.

SPC Nickel completed its infill drilling at West Graham – some very good intervals in the program and Phase 2 comprised 8,842 metres in forty holes. Will be interesting to see how resource update comes together – a few open pittable deposits in place that can ship to the mill.

Aston Minerals, our neighbour in Timmins, reported after we last talked about multiple drill holes that are seeing Crawford-like grades and extended nickel-cobalt sulphide mineralisation across multiple drilling intercepts at the B2 Prospect, strike continuity has extended by 500m. Company insiders have been buying stock as the price has come off. 

Crawford feasibility study released last week:
- $2.5 billion after-tax NPV8% and IRR of 17.1%; increasing to $2.6 billion after-tax NPV8% and IRR of 18.3% with projected Carbon Capture & Storage tax credits 
- Crawford is world’s 2nd largest nickel reserve and 2nd largest resource. Initial mineral reserve of 1.7 billion tonnes of ore grading 0.22% nickel 
- Production of 1.6 million tonnes nickel, 24 kt cobalt, 490 koz palladium & platinum, 58 million tonnes iron and 2.8 million tonnes chromium over 41-year project life 
- Annual EBITDA of $811 million, free cash flow (FCF) of $546 million, and 48ktpa of nickel production during peak 27-year period
- One of Canada’s largest carbon storage facilities with 1.5 Mtpa carbon captured and stored during peak 27-year period
- Crawford is a net negative contributor to the global CO2 footprint – with 30 tonnes of carbon capture and storage capacity per tonne of nickel remaining after accounting for the project footprint

Learn more: https://cruxinvestor.com/companies/canada-nickel

Interview with Randy Smallwood, President & CEO of Wheaton Precious Metals Corp.

Our previous interview: https://www.cruxinvestor.com/posts/wheaton-precious-metals-wpm-dividend-paying-debt-free-giant-3264

Recording date: 13th October 2023

Wheaton Precious Metals (TSX & NYSE: WPM) CEO Randy Smallwood discusses the streaming company's growth plans and partnership approach with mining companies. Wheaton has streams on mines located in Canada, Peru, New Zealand, India, Ghana, and South Africa that produce gold, silver, and copper.

Wheaton expects to increase annual production by 50% over the next 5 years through existing streaming contracts, with no additional M&A required. The company generates over $1 billion in annual operating cash flow at current metals prices. Wheaton takes a partnership approach, focused on working with profitable mines in the lowest operating cost quartiles. The company also provides community investment support to help partners achieve their social license.

Upcoming potential catalysts include the continued production ramp-up at the Salobo copper mine in Brazil, one of Wheaton's cornerstone assets. The company also continues to evaluate new streaming opportunities globally to add to its long-term growth pipeline. With high margins, increasing production, exploration success, and focus on top-tier assets, Wheaton makes a compelling investment case as a leading precious metals streaming company.

View Wheaton Precious Metals' Company Profile: https://www.cruxinvestor.com/companies/wheaton-precious-metals-corp

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

Our previous interview: https://www.cruxinvestor.com/posts/li-ft-power-cselift-accelerating-resource-development-at-the-cali-project-3795

Recording date: 13th October 2023

Li-FT Power is focused on fast-tracking development of their flagship Yellowknife lithium project to take advantage of strong lithium demand growth expected over the next decade. The company had to temporarily halt drilling due to wildfires but still completed around 30,000 meters this year, aiming to resume in January and finish 40,000 meters total drilling to support an inferred resource estimate by August 2024. CEO Francis McDonald believes current low lithium prices are just a trough and increased EV demand will drive higher long-term pricing.

The large resource potential at Yellowknife, with over 25-30 million tons targeted, and its good infrastructure compared to many lithium projects are key attractions according to McDonald. Li-FT is focused on speedy development rather than slow multi-year drilling, which is important to establish low-cost production before increased lithium supply comes online. Key barriers in Canada are permitting delays, but streamlining this process could help projects advance faster. While new pegmatite discoveries happen frequently, large resources are still needed to support major mining operations.

On the demand side, MacDonald sees the EV transition as on a trajectory that remains intact, ensured by automakers investing billions in the switch to electric. Lithium has a limited window to establish production before new supply increases, making Li-FT's accelerated development plan vital to grab market share.

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

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Interview with Douglas Cavey, Executive VP of Defiance Silver Corp.

Recording date: 13th October 2023

Defiance Silver Corp. (TSX:DEF | OTCQX:DNCVF | FSE:D4E) is a silver exploration company focused on two projects in Mexico - the San Acacio project in the historic Zacatecas Silver District and the Tepal project in Michoacán state.

The San Acacio project contains an inferred silver resource of 16.9 million ounces at 182 g/t silver, indicating potential for high-grade silver mineralization. Defiance Silver is exploring extensions of known mineralization as well as new discoveries in this district that has produced over 5 billion ounces of silver historically.

The Tepal project is an advanced-stage gold-copper project with a measured and indicated gold resource of 1.8 million ounces and an inferred copper resource of 813 million pounds. Defiance Silver sees Tepal as a potential low-cost, quick-to-production project.

Defiance Silver is focused on derisking both projects through focused exploration drilling, updating resource estimates, streamlining permitting, and putting together comprehensive mine plans. The company believes there is district-scale potential at San Acacio and that Tepal could attract interest from mid-tier and major producers as an advanced development asset.

View Defiance Silver Corp's Company Profile: https://www.cruxinvestor.com/companies/defiance-silver-corp

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Interview with Erfan Kazemi, President & CEO of Horizon Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/horizon-copper-hcu-sandstorms-quasi-royalty-copper-spin-out-3157

Recording date: 12th October 2023

Horizon Copper Corp. (TSX-V: HCU) is a base metals company focused on acquiring high-quality copper assets. The company was recently launched with the strategic partnership and backing of Sandstorm Gold Royalties, which holds a 34% stake in Horizon. Sandstorm brings its experienced technical advisory and corporate development teams to support Horizon in scaling quickly by acquiring quality assets.

Horizon's portfolio consists of three core assets including a 1.66% net profits interest in the Antamina mine in Peru, which is one of the largest copper mines in the world. Antamina is operated by a joint venture of majors including Glencore, BHP, Teck and Mitsubishi. Horizon also has a 30% interest in the Hod Maden development project in Turkey operated by SSR Mining. Additionally, Horizon owns 25% of Entrée Resources which provides a carried joint venture interest in a portion of the Oyu Tolgoi copper-gold mine in Mongolia operated by Rio Tinto.

Horizon aims to build a diversified portfolio of low cost, long-life copper assets located in top mining jurisdictions. The company has minimal capital and operating commitments on its existing assets. This allows Horizon to direct future cash flows towards expanding its portfolio or paying down debt provided by Sandstorm on attractive terms. Horizon offers leveraged exposure to an anticipated copper supply deficit in coming years driven by electrification and decarbonization.

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