Kitco MINING

Mergers and acquisitions should continue through 2024, said David D'Onofrio, CFO of PowerOne Capital Markets.

D'Onofrio spoke to Kitco Mining in early March at PDAC 2024 in Toronto, Canada. 

PowerOne Capital Markets is a diversified merchant bank, and notable mining investments include Collective Mining, enCore Energy and Neo Lithium. D'Onofrio is also CEO of White Gold, a Canadian gold exploration company operating in the prolific White Gold District located south of Dawson City in northwest Yukon, Canada. Backers include Agnico Eagle, Kinross and Eric Sprott. 

D'Onofrio admitted that critical minerals "totally capitulated" in 2023, but the setup for 2024 looks interesting. 

"You can almost have the best of both worlds where you have this continuation of precious metal price increases...and now a rebound of some of these critical minerals like lithium, nickel, copper, so I think we're setting up for an interesting year," said D'Onofrio.

Critical minerals had an awful 2023. D'Onofrio blamed a market that ran too far ahead of itself. 

"I think people were just buying to ensure they had the security of supply and that caused a bit of a squeeze," said D'Onofrio, adding that the high price levels for lithium were not "sustainable." 

"The overhang from the lithium run up is working through the system," D'Onofrio said. “It creates a glut and then we need to go through a destocking, and that's what we're seeing now.”

Asked about the some of the big transactions that kicked off the year in mining—Solaris Resources receiving $130 million from Zijin Mining Group for a 15% stake and Osino Resources being bought by Yintai Gold for $272 million—D'Onofrio said the dealmaking should continue. 

"There's a big value gap, and it's just a matter of people needing to understand why they should be looking at [investments] today versus tomorrow."

Coverage is sponsored by UEC (Uranium Energy Corp.), URC (Uranium Royalty Corp.) and GoldMining. 

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Solaris Resources has been transformed thanks to a $130 million investment by one of the world's largest miners, Zijin Mining Group. 

Solaris’ president and CEO Daniel Earle spoke to Kitco Mining in February at the 33rd BMO Global Metals, Mining & Critical Minerals Conference in Hollywood, Florida.

Solaris Resources (TSX: SLS) is advancing its flagship Warintza project in Ecuador. The company calls Warintza a global scale resource with 579 Mt at 0.59% CuEq (Ind) and 887 Mt at 0.47% CuEq (Inf) with growth potential. An updated mineral resource is expected in late Q2 of 2024. 

Solaris is managed by the Augusta Group. In January, Solaris announced a $130 million investment by Zijin Mining Group at $4.55 per common share, giving Zijin a 15% stake in Solaris.  

Earle said the investment enables the company to advance more quickly. 

"This investment holds the potential to be nothing short of transformational for the business," he said. "It allows us to get much more aggressive in terms of our pursuit of our vision."

Earle said the funds will help advance the project, as well as unlocking its full potential through new discoveries. 

"If we're able to bring it all together...do the exploration to make the discoveries, drill the resources that are available to us… at a capital cost where you could bring on production… anywhere from a half to a third of the cost of the competing jurisdictions, I think that combination represents the opportunity for one of the best greenfield projects in the entire industry,” he said.

To de-risk the project, Earle said the company is working through its social license and regulatory requirements. 

Looking broadly at the copper sector, Earle said the cost of capital is constraining new supply. 

"I think the most acute and constraining factor in terms of bringing on new copper supplies is on capital costs," said Earle. 

"You need to assume a long-term copper price that's above the current consensus, which is currently $3.75 pound copper," said Earle. "There are a lot of management teams that are going to go out to their shareholders and tell them that they're assuming and deploying capital based on an assumption that the copper price is going to be materially higher than the current consensus. That's really the challenge."

Coverage of the BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Finding gold mineralization at scale and continuity was among Snowline Gold’s (TSXV:SGD) top 2023 accomplishments, says CEO and Director Scott Berdahl.

In February Berdahl spoke to Kitco Mining at the BMO Global Metals, Mining & Critical Minerals Conference 2024 in Hollywood, Florida.

Snowline Gold is one of the most exciting exploration plays to emerge out of the Yukon. A 2023 hole returned 2.5 grams per tonne gold over 553 meters at the Valley discovery, making it one of the best drill holes ever drilled in the Yukon Territory’s 125-year history.

Snowline Gold’s Rogue project also stands out for its planned use of solar power. The company received the 2023 Robert E. Leckie Award for Excellence in Environmental Stewardship from the Yukon government.

Berdahl received Kitco Mining’s CEO of the Year Award in the non-producing category.

He suggested the Rogue project has expansion potential: “It's still growing as we step out and test open edges of that system, and more broadly we've established the presence of a district.” The company has staked over 3,000 square kilometers.

The Rogue Plutonic Complex hosts a 60- by 30-kilometer area of small and large intrusions that are like Valley in their geology, geochemistry and gold anomalism.

“We found some really compelling targets on a regional scale that suggest that Valley may not be alone out there,” Berdahl said. New target Aurelius, announced on Feb. 20, is a 2,000- by 500-meter zone located 12 km northwest of Valley. Two outcrop chip samples averaged 2.01 g/t Au over 17m and 2.31 g/t Au over 14m respectively.

This year, Snowline Gold plans to establish a mineral resource at Valley, including delineating the higher-grade, near-surface zone. In 2023 B2Gold (TSX:BTO) invested CAD$19.2 million in the company. Snowline currently has $35 million in the treasury plus $15 million in warrants.

Coverage of the BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Seventy percent of the world’s remaining copper resources are trapped in low-grade primary sulfide deposits. Being able to release that copper at a low cost, and with minimal capital expenditures is a big deal for the mining industry, says Mike Outwin, co-founder and CEO of privately held Jetti Resources.

In February Outwin spoke to Kitco Mining at the BMO Global Metals, Mining & Critical Minerals Conference 2024 in Hollywood, Florida.

Jetti has developed a technology that addresses the challenge of how to extract copper from “stranded” primary sulfide deposits. The natural leaching process works fine for oxide ores and secondary sulfide ores, but hasn’t worked on deeper primary sulfide ores due to an inhibitory layer that forms on the surface of the mineral.

“You can think of it as a force field that blocks the copper from leaving the mineral in any large amount, maybe 10-20 percent is the maximum extraction that you can get from it normally,” Outwin explained. “Our big innovation was creating this catalyst that removes that force field if it's already there… or for fresh ores make sure it doesn't form at all. And so the technology you can think of it as a key; it unlocks the door of this ore to allow the copper to exit.”

Jetti Resources has received $200 million from some big names in the mining industry including Teck Resources (TSX:TECK), BHP (NYSE:BHP) and Mitsubishi. Automaker BMW recently took a stake in the company.

The leaching technology has been deployed to mines operated by Capstone Copper (TSX:CS), US copper giant Freeport-McMoRan (NYSE:FCX), and at the El Abra copper mine in Chile.

“The reasons why we've got traction is it's a very low-capex technology, integrates seamlessly with existing operations, we're able to leverage their already existing leach systems to unlock copper,” said Outwin, adding:

“At some mines you can produce a mine’s worth of copper at an already existing asset, meaning you don't have to develop a new pit necessarily, so it's a very exciting proposition for many companies.”

He said the dollar value of leachable primary copper sulphide ores is estimated in the trillions.

Another benefit of the technology is its eco-friendliness.

“You're once again adding additional copper pounds to a site that has already been paid for from an emissions and water usage profile,” said Outwin.

BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

You need dedicated teams with staying power to drive meaningful supply in beaten down markets, noted Shaun Usmar, founder and CEO of Triple Flag Precious Metals.

In early March Usmar spoke to Kitco Mining at PDAC 2024 in Toronto, Canada. 

Usmar was asked about the underappreciated copper markets. He said that the incentive price needs to be higher for serious investment to flow into the space, but management teams that are willing to work through downturns are key. 

"[People] continue to underestimate the need for staying power and the time it takes from successful exploration in order to actually deliver first pounds of copper out of any investment opportunity," said Usmar. 

Triple Flag Precious Metals (TSX:TFPM) is a precious metals-focused, royalty and streaming company. The company has a portfolio of 32 producing assets and 41 in development. Usmar said the company has achieved a compound annual growth rate of more than 20% since 2017, and the company now sits at a $2.6 billion market cap. 

Triple Flag is forecasting an attributable royalty revenue and stream sales of 105,000 to 115,000 gold equivalent ounces in 2024. 

Within Triple Flag's portfolio, Usmar highlighted Northparkes in Australia, which he says is about a quarter of the company's net asset value. Output is set to increase at the mine. 

"They're entering into E31-E31 North, which is a high gold grade zone, so you'll see a material increase in gold and silver."

Usmar underlined alignment between management and shareholders. 

"The key thing that underlines this is that we've got a lot of insider ownership," said Usmar. 

Coverage is sponsored by UEC (Uranium Energy Corp.), URC (Uranium Royalty Corp.) and GoldMining. 

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Alamos Gold really hit its stride this decade, said John McCluskey, president and CEO. 

In early March McCluskey spoke to Kitco Mining at PDAC 2024 in Toronto, Canada. 

Alamos (NYSE:AGI) is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America: the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos Mine in Sonora State, Mexico. The company's growth pipeline includes phase 3+ expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 1,900 people.

In 2024 the company is forecasting 505,000 ounces of gold production at an all-in-sustaining cost (AISC) of $1,150 per ounce. Longer-term production will leap to about 800,000 ounces at $1,025 AISC.

"We've had just a tremendous run of success," said McCluskey, noting strong performance by the company's Mexico operations in 2023.  "[The company] really hit its stride, and we ended up really exceeding our overall production guidance."

Coverage is sponsored by UEC (Uranium Energy Corp.), URC (Uranium Royalty Corp.) and GoldMining. 

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Barrick Gold (TSX:ABX) is focused on replacing the ounces it mines through exploration, says President & CEO Mark Bristow.

In February Bristow spoke to Kitco Mining at the 33rd BMO Global Metals, Mining & Critical Minerals Conference in Hollywood, Florida.

“We've really invested in the quality of our explorers and that's what adds value,” he said, noting that Barrick is spending 60 percent of its exploration budget this year on greenfield (early-stage) projects.

Bristow said Barrick’s most effective growth strategy is to acquire large mines with long lives, rather than trying to manage several small mines. The company is currently focused on copper, two examples being the Reko Diq copper-gold project in Pakistan and the Lumwana copper mine’s Super Pit expansion in Zambia.

“For me, what we set out to build is a sustainable, infinite business in Barrick,” said Bristow, referring to when the company was first incorporated under Bob Smith and Peter Munk. “It created huge value through exploration discovery and early-stage M&A. I copied it in Randgold, that same philosophy just in North Africa, so that's what we’ve got to do again.”

Barrick recently permitted the Goldrush underground mine in Nevada, expected to start production this year at 130,000 ounces and grow to 400,000 oz per annum by 2028. Also in northern Nevada, site of the Nevada Gold Mines joint venture with Newmont Mining (TSX:NGT), Bristow said Barrick is executing on its brownfields five-year horizon to replace the gold that it has mined. Next to Goldrush is the Fourmile project, discovered in 2015, to which Barrick has committed $42 million towards a prefeasibility study.

“I'm absolutely convinced that we've got more Fourmiles around in that district, and in Turquoise Ridge as well, we've now opened the orebodies in both directions,” said Bristow.

Barrick’s end-of-year goals are building flexibility into underground development in Nevada; securing new ground within the Central African Copper Belt; exploring joint ventures around Reko Diq in Pakistan; and pursuing opportunities in Saudi Arabia.

Bristow said he also wants to bring all-in-sustaining costs down to around $1,000 an ounce.

He concluded the interview by hinting where Barrick could next make a move.

“We need something for the North American team to chew on and ideally in the short-term it will more than likely be Canada.”

Coverage of the BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Seventy percent of the world’s remaining copper resources are trapped in low-grade primary sulfide deposits. Being able to release that copper at a low cost, and with minimal capital expenditures is a big deal for the mining industry, says Mike Outwin, co-founder and CEO of privately held Jetti Resources.

In February Outwin spoke to Kitco Mining at the BMO Global Metals, Mining & Critical Minerals Conference 2024 in Hollywood, Florida.

Jetti has developed a technology that addresses the challenge of how to extract copper from “stranded” primary sulfide deposits. The natural leaching process works fine for oxide ores and secondary sulfide ores, but hasn’t worked on deeper primary sulfide ores due to an inhibitory layer that forms on the surface of the mineral.

“You can think of it as a force field that blocks the copper from leaving the mineral in any large amount, maybe 10-20 percent is the maximum extraction that you can get from it normally,” Outwin explained. “Our big innovation was creating this catalyst that removes that force field if it's already there… or for fresh ores make sure it doesn't form at all. And so the technology you can think of it as a key; it unlocks the door of this ore to allow the copper to exit.”

Jetti Resources has received $200 million from some big names in the mining industry including Teck Resources (TSX:TECK), BHP (NYSE:BHP) and Mitsubishi. Automaker BMW recently took a stake in the company.

The leaching technology has been deployed to mines operated by Capstone Copper (TSX:CS), US copper giant Freeport-McMoRan (NYSE:FCX), and at the El Abra copper mine in Chile.

“The reasons why we've got traction is it's a very low-capex technology, integrates seamlessly with existing operations, we're able to leverage their already existing leach systems to unlock copper,” said Outwin, adding:

“At some mines you can produce a mine’s worth of copper at an already existing asset, meaning you don't have to develop a new pit necessarily, so it's a very exciting proposition for many companies.”

He said the dollar value of leachable primary copper sulphide ores is estimated in the trillions.

Another benefit of the technology is its eco-friendliness.

“You're once again adding additional copper pounds to a site that has already been paid for from an emissions and water usage profile,” said Outwin.

BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

2024 will be a “building year” says B2Gold (TSX:BTO) President & CEO Clive Johnson, pointing to ongoing construction of the Goose mine in Nunavut, and projects in Mali including building a tailings facility and expanding a solar plant.

In February Johnson spoke to Kitco Mining at the BMO Global Metals, Mining & Critical Minerals Conference 2024 in Hollywood, Florida.

The company had an excellent 2023, production-wise, outputting 994,000 ounces from its operations in Mali, the Philippines and Namibia, and meeting guidance for the eighth straight year. 2024 production may not be as good, but Johnson said 2025 should see a record-setting 1.2 to 1.3 million ounces and a reduction in costs.

Obtaining a permit for trucking ore to the Fekola mill in Mali is expected to add 80,000 to 100,000 ounces. The contribution of this new gold production is expected to start in early 2025.

The Goose project, anticipated to come online around the same time, should add another 300,000 ounces a year.

Johnson said B2Gold is not looking to add any new projects through M&A, noting “frankly at the end of the day we have growth in the portfolio, so not only do we have the expansion of Fekola, the Goose mine coming on, but we think the next one may very well be Gramalote in Colombia.”

B2Gold now has full ownership of the gold project, having acquired AngloGold Ashanti’s 50 percent interest in October 2023. Johnson said Gramalote will be a small, high-grade mine on the order of 150-200,000 ounces a year, adding a study will be out by mid-year.

Commenting on recent gold M&A that had led to disappointing results from large companies,

Johnson said there’s a place for companies in the 1-3 million ounces a year range, such as B2Gold that are “light on their feet”. Bigger companies have a harder time replacing ounces.

“I think there's a space for investors to do very well with smaller producers,” he said.

B2Gold has invested in junior resource companies including Snowline Gold (CSE:SGD) and Matador Mining (ASX:MZZ). Johnson said B2Gold is interested in working with juniors, stating “that’s an important part of our growth portfolio,” but also wants to conduct its own exploration. The company has a USD$65 million budget this year, including $28M for Goose.

Coverage of the BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

The falloff in demand for electric vehicles is overblown, says Ken Brinsden, president and CEO of Patriot Battery Metals (TSX:PMET).

In February Brinsden, along with COO and Executive Director Blair Way, spoke to Kitco Mining at the BMO Global Metals, Mining & Critical Minerals Conference 2024 in Hollywood, Florida.

Brinsden, Patriot’s former board chair, is now CEO, president and managing director. Former CEO Way moved into the chief operating officer position while retaining his seat on the board.

“I'm really motivated by the development story,” Brinsden said of the flagship Corvette project in Quebec. “It's moved beyond being just an exploration play and I think most people can see that it’s now got serious potential and one day will be a mine.”

The property hosts the CV5 spodumene pegmatite with a maiden inferred resource estimate of 109.2 million tonnes at 1.42% Li2O and 160 ppm Ta2O5 (at a cut-off of 0.40% Li2O). It ranks as the largest lithium pegmatite resource in the Americas based on contained lithium carbonate equivalent (LCE), and one of the top 10 largest pegmatite resources in the world.

While Western Australia has been supplying lithium to China, which dominates the world’s lithium processing capacity, Brinsden said the Corvette project is “so much more about the future of the North American and European supply chains, much more so than China.”

In Patriot's investor presentation, the company calls out lithium chemical refining in North America, calling it the missing link the Western supply chain. The company is looking to partner with future refiners. 

“Corvette has the critical mass in terms of total tons to underwrite multiple chemical facilities and as a result we should be able to have sensible conversations with participants downstream that are also interested in building out those new supply chains that allow some diversity in the lithium world, at least diversity beyond China,” he continued.

Asked whether he’s concerned about the company tying its fortunes to North America, which has seen a reduction in EV sales of late, Brinsden said: ”I would hazard a pretty good guess that there is going to be a lot of growth in that North American supply chain despite people's views about EVs today.”

COO Blair Way concurred, stating “the demand profile for materials is quite staggering when you look the number of EVS that are being sold worldwide… the demand for lithium is not going anywhere.”

BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.