Interview with Tim Moody, President & CEO of Pan Global Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/pan-global-resources-tsxvpgz-tin-metallurgy-strengthens-copper-project-economics-5177

Recording date: 3rd May 2024

Pan Global Resources (TSXV:PGZ) is a compelling copper exploration story that looks ideally positioned to benefit from a looming structural deficit in the copper market. With its flagship La Romana project in southern Spain's Iberian Pyrite Belt rapidly advancing toward a maiden resource and a pipeline of nearby prospects, the company offers attractive exposure to rising copper prices with additional upside from tin and gold byproducts.

The investment case for Pan Global centers on La Romana, where three years of drilling have delineated a sizeable zone of near-surface, potentially open-pittable copper mineralization that continues to grow. The deposit boasts extremely favorable metallurgy, with clean, coarse-grained chalcopyrite mineralization yielding high-grade concentrates with no penalty elements - a characteristic that makes it a highly attractive target for acquisition or ore feed for nearby mines.

As CEO Tim Moody explains, "We've got a pretty unique patch of ground here. Our main discovery is very advanced with 180 drill holes and it's still growing - that's hopefully a significant discovery in its own right." While the company has not yet defined a resource, Moody emphasizes that Pan Global could release a maiden resource at any time but is holding off to fully capture the scale of the expanding deposit.

Beyond La Romana, positive metallurgical results showing potential for an economically significant tin byproduct have added an unexpected sweetener, attracting new investor attention. Furthermore, ongoing exploration work has yielded a brand new discovery at the nearby Escacena target, highlighting the potential for Pan Global to define a cluster of deposits across its license area.

Moody sees three potential pathways to value creation: advancing La Romana as a standalone project, making additional discoveries to build a district-scale play and appeal to acquirers, or striking a deal to provide ore feed to one of several nearby mines and development projects. Importantly, release of a maiden resource and preliminary economic assessment for La Romana will provide greater visibility into the value of the asset and could drive a significant re-rating of the stock.

In the background, a historically bullish long-term outlook for copper prices should provide a rising tide for Pan Global shares. Copper demand is set to surge in the coming years as the global economy accelerates its shift toward renewable energy and electrification, while supply growth looks increasingly constrained. These dynamics are expected to push the copper market into a deep structural deficit, necessitating much higher prices. Pan Global's Spanish location in a mining-friendly jurisdiction with access to renewable power gives it a further edge.

While the company has had to be judicious with its spending in a challenging equity market, it has ample funding to deliver on its near-term objectives and is positioned to ramp activities back up as market sentiment improves. With a large, growing discovery, a top-notch management team, and exposure to a rising copper price, Pan Global looks poised for a significant re-rating as it continues to derisk La Romana and define the scale of its opportunity. The stock is an attractive speculation for investors looking to gain exposure to the long-term copper growth story.

View Pan Global Resources' company profile: https://www.cruxinvestor.com/companies/pan-global-resources

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