Company Interviews

Interview with Jeff Quartermaine, Managing Director & CEO of Perseus Mining Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/perseus-mining-asxpru-a1b-in-liquid-assets-growing-6623

Recording date: 24th February 2025

Perseus Mining Limited (ASX/TSX: PRU) has announced robust financial results for the half-year ending December 2024, demonstrating solid performance across its African gold operations. The company reported gold production of 253,709 ounces at an all-in site cost (AISC) of US$1,162 per ounce, positioning it in the upper half of its guided production range while keeping costs below expectations.

Financial highlights include revenue of US$581.8 million (up 19% year-on-year), profit after tax of US$201 million (up 22%), and EBITDA of US$352.7 million (up 26%). The company's earnings per ounce reached US$819, representing a 25% increase from the previous comparable period.
"What's really important from our perspective is that our earnings per ounce are around $819 per ounce, which is 25% higher than in the previous period," noted Jeff Quartermaine, CEO and Managing Director.

Perseus's financial strength is evident in its balance sheet, with US$704 million in cash and bullion as of December 31, 2024, an increase of US$117 million in just six months. The company maintains zero debt while having access to a US$300 million undrawn credit facility.

This strong position has enabled Perseus to double its interim dividend to 2.5 Australian cents per share and implement a share buyback program of up to A$100 million. As of February 10, 2025, the company had purchased 4,689,269 shares for approximately A$12.16 million.

Production was distributed across Perseus's three operating mines: Yaouré (123,158 ounces), Edikan (96,634 ounces), and Sissingué (33,917 ounces). For the June 2025 half-year, the company forecasts production between 215,000 and 250,000 ounces at an AISC of US$1,360-1,435 per ounce.

Perseus's growth strategy includes underground development at CMA in Côte d'Ivoire, advancement of the Nyanzaga Gold Project in Tanzania (scheduled to begin production in early 2027), and potential mine life extensions at existing operations.

The company employs a measured approach to gold price risk management, with approximately 24% of production hedged at US$2,500 per ounce while allowing the remaining 76% to benefit from current high spot prices.

"Our business is not about spending money; it's about generating benefits," Quartermaine emphasized, highlighting Perseus's disciplined approach to capital allocation.
With its robust financial position, operational efficiency, clear growth pathway, and commitment to shareholder returns, Perseus Mining appears well-positioned to navigate the opportunities and challenges of gold mining in Africa while capitalizing on the current favorable gold price environment.

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

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Interview with Sam Lee, President & CEO of NorthIsle Copper & Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/northisle-copper-gold-tsxvncx-restructures-project-development-to-optimize-capital-efficiency-6438

Recording date: 20th February 2025

Northisle Copper & Gold has announced impressive results from its preliminary economic assessment (PEA) for the North Island copper-gold project in British Columbia, Canada. The study reveals an after-tax net present value of US$2 billion with a 29% internal rate of return, positioning it as one of the most capital-efficient projects in the copper-gold sector.

The project's innovative phased development approach significantly reduces initial capital requirements. Phase 1 will operate at 40,000 tonnes per day, focusing on gold-rich mineralization that provides 70% margins. This initial phase, requiring US$850 million in capital, helps fund the Phase 2 expansion to 80,000 tonnes per day, which will incorporate more copper production. The project achieves a rapid payback period of 1.9 years and features a favorable NPV to capex ratio of 1.7, substantially higher than typical copper projects that range from 0.5 to 1.0.

Over its 29-year mine life, North Island is projected to produce an average of 157 million pounds of copper equivalent or 300,000 ounces of gold equivalent annually. The life-of-mine production maintains an approximately equal split between copper and gold.

The project's exploration potential is particularly noteworthy, with Northisle controlling a 35-kilometer porphyry district. The company's 2025 drill campaign, which is fully funded, will focus on the high-grade northern corridor area, with approximately 85% of the drilling budget allocated to expanding resources around the 2021 Goodspeed discovery.

A significant exploration target includes the Pemberton Hills area, located 5-7 kilometers from North Island, featuring a 6.5 x 1.5km lithocap that has already seen over $5 million in historical exploration. The company is advancing this target alongside the main North Island project.

Northisle's President & CEO Sam Lee emphasizes the project's strategic value, noting that major mining companies are particularly interested in district-scale opportunities rather than single-asset projects. While the company remains open to strategic partnerships for exploring Pemberton Hills, management has clearly stated they won't divest any ownership in the core North Island project.

With a market capitalization of approximately C$160 million, Northisle offers investors exposure to both copper and gold in a stable jurisdiction, with significant exploration upside potential. The project's economics are particularly robust, benefiting from existing infrastructure and strong local community support. The company's focus on reducing capital intensity while maintaining high margins positions it well in the current market environment, where few new copper projects combine scale, favorable economics, and low jurisdictional risk.

View NorthIsle Copper & Gold's company profile: https://www.cruxinvestor.com/companies/northisle-copper-gold

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Interview with Chris Frostad, President & CEO of Purepoint Uranium

Our previous interview: https://www.cruxinvestor.com/posts/purepoint-uranium-tsxvptu-isoenergy-partnership-unlocks-district-potential-in-athabasca-basin-6109

Recording date: 21st February 2025

Purepoint Uranium Group (TSXV:PTU) is employing a distinctive joint venture strategy to explore for uranium in Saskatchewan's Athabasca Basin. The company has partnered with major industry players including Cameco, Orano, and IsoEnergy, allowing it to conduct extensive exploration while minimizing shareholder dilution.

The company's flagship project, Hook Lake, where Purepoint maintains a 21% stake alongside Cameco and Orano, has seen over $15 million in exploration investment. The property is strategically located on trend with significant uranium discoveries, including NexGen's Arrow deposit and Fission's Triple R. The 2025 program at Hook Lake will focus on the Patterson Corridor and newly identified conductor trends that may host a second major deposit.

Purepoint's joint venture model offers unique financial advantages. For every million dollars spent on exploration at Hook Lake, Purepoint contributes $210,000 but receives back $100,000 in management fees for operating the project. This structure allows the company to conduct exploration at the scale of a much larger organization while maintaining financial efficiency.

A recent development is Purepoint's joint venture with IsoEnergy, covering a 98,000-hectare land package in the Athabasca Basin. The flagship Dorado project, which extends along the trend of IsoEnergy's Hurricane deposit, has secured a $5 million exploration budget for 2025.

CEO Chris Frostad maintains a bullish outlook on uranium markets, despite recent price volatility. While spot prices experienced a speculative surge to over $100/lb in 2023 before correcting, Frostad believes the market is only "halfway through this bull market," noting that the industry has been operating with a supply deficit for six years.

The long-term fundamentals for uranium appear strong, with global demand exceeding primary mine supply for nearly a decade. Current mine supply covers only about 80% of reactor requirements, with the gap being filled by secondary supplies and inventories. This deficit is expected to become more acute as secondary supplies diminish and utility demand increases with the growth of nuclear power globally.

Looking ahead, Purepoint is positioned to capitalize on rising uranium prices through its portfolio of exploration projects. The company's joint venture approach provides multiple opportunities for discovery while maintaining financial discipline. With several drill programs planned for 2025 and strong partnerships in place, Purepoint offers investors exposure to uranium exploration in one of the world's premier mining jurisdictions.

View Purepoint Uranium's company profile: https://www.cruxinvestor.com/companies/purepoint-uranium-group-inc

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Interview with James Sykes, President & CEO of Baselode Energy Corp.

Our previous interview: https://www.cruxinvestor.com/posts/baselode-energy-tsxvfind-pioneering-near-surface-uranium-exploration-in-athabasca-basin-5896

Recording date: 20th February 2025

Baselode Energy CEO James Sykes recently discussed the company's uranium exploration strategy and market outlook, highlighting both challenges and opportunities in the current market environment. The company is pursuing a dual-track approach, advancing its flagship ACKIO uranium deposit while seeking new discoveries at its Hook project.

With $10 million in treasury, including $5 million allocated for exploration, Baselode is well-positioned to execute its plans through 2025. This strong financial position enables the company to weather market volatility and potentially capitalize on distressed uranium assets.

The ACKIO deposit shows promise as an economically viable open-pit mine, though Sykes notes the market has not fully recognized its value. The company is pursuing a hub-and-spoke development model, aiming to make additional discoveries within 5-6 kilometers of ACKIO to enhance project economics. Baselode is actively seeking strategic partners to help advance ACKIO through economic studies and permitting stages.

Looking at the broader uranium market, Sykes emphasizes growing demand coupled with supply challenges. "The demand out there continues to grow and the supply somehow seemingly continues to diminish. Global projects are finding it harder to come online, which is really diminishing the supply side outlook," he states.

The company's exploration focus has shifted to the Hook project, where two high-priority targets could potentially deliver a new high-grade discovery. Drilling at these targets is planned for 2025, representing a significant catalyst for the company.

Sykes points to structural changes in uranium supply since the Fukushima incident, noting that new discoveries have altered the outlook for both the Athabasca Basin and global projects. However, years of underinvestment in uranium exploration and development, combined with mine closures and production cuts, have created a persistent supply deficit.

The investment thesis for Baselode centers on its strong cash position, potential for new discoveries, and the strategic value of the ACKIO deposit. The company believes its current market valuation doesn't reflect the long-term potential of its assets or the improving fundamentals of the uranium market.

As governments worldwide increasingly recognize nuclear power's role in achieving climate goals and ensuring energy security, Baselode appears well-positioned to benefit from this transition. The company's focus on making new discoveries while advancing existing assets provides multiple pathways for value creation in an improving uranium market.

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

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Interview with Greg Bittar, CEO of Lotus Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/lotus-resources-asxlot-the-funded-fast-tracked-path-towards-2025-uranium-production-6191-200a9

Recording date: 19th February 2025

Lotus Resources (ASX:LOT) is positioning itself as one of the next uranium producers globally, with its Kayelekera project in Malawi targeting first production in Q3 2025. The company has secured robust funding, with US$135 million in available liquidity and a US$45 million buffer to support operations through initial production ramp-up.

The project's economics appear compelling, with projected all-in sustaining costs of $45/lb against current long-term contract prices of around $80/lb. At planned production rates of 2.4 million pounds per annum, this could generate annual operating cash flows of $70-80 million. The company has made significant progress on the contracting front, working toward securing term sheets for approximately 35% of production from 2026-2029 with fixed-price escalating contracts.

Project development is advancing well, with over 250 workers on site daily. Key infrastructure improvements include rebuilding the acid plant, upgrading power systems, and preparing for eventual grid connection to reduce operating costs. The company plans to initially operate using imported sulfuric acid before transitioning to on-site acid production by year-end.

Beyond Kayelekera, Lotus is advancing its Livingstonia project in Botswana, which offers significant resource upside potential. The company is conducting optimization studies to address mining approaches for the deep resource and improve acid consumption metrics.

CEO Greg Bittar emphasizes the disconnect between current spot market volatility and the more stable long-term contract market, where prices have remained steady around $81/lb. The company is strategically focusing on securing long-term contracts with utilities rather than exposure to the thinly traded spot market.

The project's advancement comes amid growing global interest in nuclear power as countries seek reliable, emissions-free baseload power to complement renewable energy sources. With major producers like Cameco and Kazatomprom having implemented supply cuts, and increasing demand from new reactor builds particularly in China and other growth markets, the uranium market fundamentals appear supportive of new production.

Lotus expects to be cash flow positive by early 2026, positioning it as one of the few new uranium producers entering the market during this cycle. With full funding in place, advancing contract discussions, and potential exploration upside, the company appears well-positioned to capitalize on the growing uranium market as nuclear power plays an increasingly important role in global decarbonization efforts.

View Lotus Resources' company profile: https://www.cruxinvestor.com/companies/lotus-resources-limited

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Interview with Neil Young, MD & CEO of Elixir Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/elixir-energy-asxexr-drilling-down-unconventional-gas-prize-in-bullish-australian-market-6251

Recording date: 18th February 2025

Elixir Energy (ASX:EXR) is advancing a significant gas project in Queensland, Australia, following a strategic pivot from its Mongolian operations. The company recently strengthened its position through a deal with Santos, Australia's second-largest oil and gas company, securing a 50% stake in two permits adjacent to its existing acreage.

The company plans to drill a key well in Q3 2025 to a depth of over 3,000 meters on the Santos acreage. This well, costing less than $10 million with approximately half potentially funded through R&D tax credits, aims to prove commercial viability by testing productivity and liquids content in an up-dip location expected to be more liquids-rich.

Elixir's acreage sits within the Taroom Trough, described as a large, homogeneous unconventional gas play. The company estimates its acreage contains over 30 TCF of gas-in-place in deep coals, though current recovery factors are less than 1%. Shell's presence in adjacent blocks provides validation of the play's potential, with the major having invested approximately $500 million in the region through its own activities and its acquisition of BG Group.

The project benefits from strong market fundamentals, with current gas prices around $14/GJ at the Wallumbilla Hub. The market is expected to tighten further, with LNG imports into Southern Australia potentially driving prices above $20/GJ. Queensland's supportive regulatory environment and the growing recognition of gas's role in energy security and transition add to the project's appeal.

Beyond the Santos acreage well, Elixir plans to drill the Diona-1 conventional well in mid-2025 and is seeking a farm-in partner for its 100% owned acreage. The company's management team, led by CEO Neil Young, brings significant industry experience and relationships, particularly with Santos.

Young emphasizes the project's advantages: "This is an unconventional play located immediately proximate to infrastructure, it doesn't need a single FID with a big signing ceremony and billions in spending. Here you can incrementally spend tens of millions, feed markets that are small to start, then build up your infrastructure."

The company sees significant potential for value creation through its ongoing drilling program, potential farm-out deals, and the continued de-risking of the play through both its own activities and those of nearby operators. With a strong acreage position, supportive market conditions, and clear development pathway, Elixir appears well-positioned to capitalize on Queensland's growing gas opportunity.

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

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Interview with Nic Earner, Managing Director of Alkane Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/alkane-resources-asxalk-fully-funded-growth-plan-exploration-upside-for-potential-re-rating-6182

Recording date: 18th February 2025

Alkane Resources, an ASX-listed gold producer operating in New South Wales, is capitalizing on record-high Australian gold prices of around A$4,600 per ounce. The company has positioned itself for strong performance with recent operational improvements and a strategic hedging approach.

For FY2025, Alkane expects production to be in the lower range of its 70-80,000 ounce guidance, with all-in sustaining costs (AISC) between A$2,400-2,600 per ounce. Production is projected to be closer to 80,000 ounces in FY2026, with AISC expected to decrease to around A$2,000 per ounce after completion of development work in the new mining area.

The company has recently completed significant infrastructure investments, including a flotation and fine grinding circuit that has increased gold recoveries by 7%, along with a new pace carbon-in-leach plant. While these investments have resulted in higher near-term costs, they are expected to improve long-term operational efficiency.

Alkane's hedging strategy leaves two-thirds of its production exposed to current high gold prices, with only one-third hedged at A$2,850 per ounce through June 2027. At current spot prices, this results in an average realized gold price of approximately A$4,000 per ounce.

The company's flagship Tomingley Gold Operations, including its underground mine and satellite deposits of Roswell and San Antonio, demonstrate significant exploration potential. Since 2013, the operation has exceeded initial expectations, having mined about 650,000 ounces from an initial 370,000-ounce mine plan, with substantial reserves still remaining.

Financially, Alkane maintains a strong position with A$40 million in cash and bullion as of December 2024, expected to increase in the current quarter. The company's debt structure includes A$45 million in bank debt, with A$5 million scheduled for repayment by June 2025.

Looking ahead, Alkane is developing a new open pit mine alongside its underground operations, which should provide additional operational flexibility. The company's growth strategy is supported by extensive exploration upside, with its underground operations and satellite deposits remaining open at depth.

The broader market environment appears favorable for Alkane, with gold prices at record highs in Australian dollar terms, driven by global economic factors including monetary stimulus, inflation concerns, and geopolitical tensions. As an Australian producer, Alkane benefits from both the high gold prices and the stability of operating in Australia's established mining jurisdiction.

View Alkane Resources' company profile: https://www.cruxinvestor.com/companies/alkane-resources

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Interview with Nico Cookson, Head of Corporate Development & Strategy of Marimaca Copper

Our previous interview: https://www.cruxinvestor.com/posts/marimaca-copper-tsxmari-high-grade-discovery-for-mine-builder-6499

Recording date: 18th February 2025

Marimaca Copper Corp (TSX: MARI) announced a significant step forward in permitting its flagship Marimaca Copper Project in Chile. The company has received the Consolidated Request for Clarifications, Rectifications and/or Extensions (ICSARA) from environmental regulators, marking the first milestone in the evaluation of its submitted Environmental Impact Statement (DIA).

This progress keeps Marimaca on track to potentially receive its Environmental Qualification Resolution (RCA) and full project approval in late 2025. Permitting is one of the most critical risk factors for any mining project, so successful navigation of this process is essential for Marimaca to transition from an explorer to a copper producer.

The ICSARA provides the initial feedback and additional information requests from the multi-agency regulatory review of Marimaca's comprehensive 4,000+ page DIA submission. The DIA, which the company filed in December 2024, was the culmination of several years of baseline data collection, analysis and project design work.

Marimaca will now respond to the ICSARA, addressing any outstanding regulatory queries. The company noted that sustainability and social considerations have been core to the project design from the outset, which it believes aligns with Chile's goal to grow critical minerals supply in a responsible manner.

In parallel with permitting, Marimaca is also advancing a Definitive Feasibility Study (DFS) on the oxide project and continuing exploration on the nearby Pampamadena targets. The company sees the potential to develop a scalable mining district anchored by the Marimaca deposit.

The global copper market is widely forecast to enter a period of structural supply deficits and higher prices later this decade, as demand growth from electrification outpaces supply. With the permitting process advancing as expected, Marimaca appears well-positioned to capitalize on this window of opportunity.

As one of the more advanced oxide copper projects in Chile, Marimaca offers investors exposure to a relatively low-risk, quick-to-production asset with meaningful upside potential in a premier mining jurisdiction. Successful completion of permitting is the key to unlocking this value.

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

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Interview with Marc Henderson, President & CEO of Laramide Resources Ltd.

Our Previous Interview: https://www.cruxinvestor.com/posts/laramide-resources-tsxlam-secures-prime-uranium-exploration-rights-in-kazakhstan-5895

Recording date: 14th February 2025

Laramide Resources (TSX:LAM) is strategically positioning itself in the uranium sector with three key assets across the United States, Australia, and Kazakhstan. The company's portfolio comes at a crucial time as nuclear power gains prominence in the global push for clean energy.

The company's flagship Church Rock ISR project in New Mexico holds 50 million pounds of uranium resources and is approaching the final stages of development. With most permits secured, including a U.S. Nuclear Regulatory Commission license, the project awaits one remaining state permit related to groundwater restoration. Church Rock is projected to be shovel-ready by 2026-2027, with initial production capacity of 1 million pounds annually, scalable to 3 million pounds. The ISR mining method offers advantages of lower capital costs and faster path to production.

In Australia, Laramide's Westmoreland project in Queensland represents another significant opportunity with over 50 million pounds of uranium resources. The conventional mining project targets production of 5 million pounds annually and could be operational by 2028-2029, pending the state's approval of uranium mining.

The company recently expanded its portfolio with a greenfield exploration project in Kazakhstan, the world's leading uranium producer. This venture, viewed as an "asymmetric upside opportunity," provides Laramide with exploration potential in a highly prospective region.

CEO Marc Henderson sees strong fundamentals in the uranium market, noting that utilities are comfortable with $80/lb uranium prices, with potential to reach $100/lb. He emphasizes that success in the current market requires projects that are viable at these price levels.

The company's development strategy aligns with growing uranium demand driven by nuclear power's role in clean energy transitions. Years of underinvestment in new supply, combined with existing mine depletion, has created a structural deficit in the uranium market. Henderson notes, "We need a lot more uranium, but we don't need it all to start in 2030," highlighting the strategic timing of Laramide's project pipeline.

The investment thesis centers on Laramide's exposure to rising uranium prices through low-cost, late-stage development assets. Near-term catalysts include the final permit for Church Rock and Queensland's potential approval of uranium mining for Westmoreland. This positions the company to potentially become a significant supplier to Western utilities as the market faces growing supply deficits.

Learn more: https://www.cruxinvestor.com/companies/laramide-resources

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Interview with Nicholas Bridgen, CEO of Ferro-Alloy Resources Ltd.

Recording date: 14th February 2025

Ferro Alloy Resources is developing a significant vanadium project in Kazakhstan, positioning itself as a potential leader in both the vanadium market and sustainable carbon black production. Under CEO Nick Bridgen's leadership, the company is advancing toward a feasibility study, expected by June 2025.

The vanadium market, currently at 125,000 tons annually, is characterized by significant price volatility, with prices ranging from $30 to $5 per pound in recent years. While steel production remains the primary demand driver, accounting for 85-90% of consumption, the emerging vanadium redox flow battery (VRFB) sector presents substantial growth potential. China's announced VRFB projects alone could require an additional 100,000 tons of vanadium.

A unique aspect of Ferro Alloy's project is its carbon black substitute (CBS) co-product. The company's vanadium-rich ore contains 8-14% naturally occurring carbon, which can be concentrated to 40% purity through a low-energy process. This CBS offers a sustainable alternative to traditional carbon black, a $20-30 billion global market where conventional production emits approximately two tons of CO₂ per ton of product.

The company's CBS innovation provides three key advantages: cost efficiency (priced at $500/ton, half the cost of traditional carbon black), minimal CO₂ emissions, and performance capabilities. Testing shows CBS can replace up to 10% of traditional carbon black in tire sidewalls without performance loss. The Phase 1 project aims to produce 220,000 tons of CBS annually, potentially generating $110 million in revenue.

Ferro Alloy's strategic location in Kazakhstan positions it well for diversifying vanadium supply away from China and Russia, key considerations given current geopolitical dynamics. The company's project stands out for its potential to be the largest and lowest-cost vanadium producer globally, with significant expansion potential across seven ore bodies.

The investment thesis centers on dual exposure to vanadium's growth potential in steel and energy storage markets, coupled with the innovative CBS opportunity. The CBS revenue stream could provide a hedge against vanadium price volatility, while the project's low-cost profile and strategic importance enhance its financing prospects.

Looking ahead, the completion of the feasibility study will be a crucial milestone, providing detailed economics for Phase 1 and insights into the broader resource potential. The company's approach to both vanadium production and sustainable CBS manufacturing aligns with global trends toward renewable energy and reduced emissions, particularly in steel production and energy storage.

Learn more: https://www.cruxinvestor.com/companies/ferro-alloy-resources

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