100 episodes

CRUX Investor is a new market insight channel for those interested in understanding the junior mining world and opportunities to invest. Its purpose is to cut through a lot of the jargon, bias and bluster that is prevalent in this sector and hone-in on the most important factors that can indicate whether a company has a strong footing for growth and success. Make smarter investment decisions, subscribe here: https://www.cruxinvestor.com

CruxCasts CRUX Investor

    • Investing

CRUX Investor is a new market insight channel for those interested in understanding the junior mining world and opportunities to invest. Its purpose is to cut through a lot of the jargon, bias and bluster that is prevalent in this sector and hone-in on the most important factors that can indicate whether a company has a strong footing for growth and success. Make smarter investment decisions, subscribe here: https://www.cruxinvestor.com

    206. Pan African Resources (LSE: PAF) - Be-Be-Beating Hard Times, That is My Theme

    206. Pan African Resources (LSE: PAF) - Be-Be-Beating Hard Times, That is My Theme

    Interview with Cobus Loots, CEO of Pan African Resources (AIM:PAF)These guys get things done. Mining is never easy, mining in South Africa is far from easy, but the management team at gold producer, Pan African Resources, keep finding a way to get things done and are consistently hitting targets. Pan African is well on its way to becoming a mid-tier gold producer targeting 185,000oz per annum this year. Loots ran us through the highs and lows of the last 6 months, including the recently released operational update.Pan African Resources has a share price of GB£0.125 and a market cap of GB£278M. It is listed on the AIM.The key highlights from the update?-Pan African is on track to deliver the full-year production guidance of 185,000oz.- Group gold sales increased by 14.7% to 92,941oz (2018: 81,014oz).- The Evander 8 Shaft Pillar project development is progressing according to plan, with steady-state production planned from March 2020.We like the tailings slant on the business. Green is very fashionable right now. Barberton Tailings Retreatment Plant produces a steady stream of gold, c. 25,000oz per annum, and the Shaft Pillar at Evander, an area of developmental focus in the near future for Pan African, could provide 20,000oz, rising to 30,000oz+ "in the years ahead." Pan African is now mining more economically due to a strategy change: mining at the shaft rather than at deeper levels. The result is an intended sub-US$1,000 AISC for the Pillar project. Solid numbers, and in line with the rest of Pan African's other operations. Elikhulu Tailings Retreatment Plant has had a mining feasibility study conducted that is now being independently vetted by a third party, with the view to expand it to a full feasibility study. Loots says it looks like c. 90,000oz per annum, with a 9-year life-of-mine, rising to 20 years with further resource modeling. By utilising existing infrastructure, Pan African can keep costs down and get things going quicker. This is still a little way off but could be a good addition to the portfolio.In terms of dividends, Pan African recently released its first dividends for years. Loot states the company was recently one of the highest yielding gold dividend shares in the world. Loots states that he wants to get back there. Let's see how things turn out.For now, it's full speed ahead developing the projects, overcoming issues pertaining to jurisdiction, community and environment difficulties, and getting the share price where investors will no doubt want to see it.Company page: https://www.panafricanresources.com/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CRUXinvestor

    • 16 min
    205. Equinox Gold (TSX: EQX) - Gotta do it, Gotta do it Big, Big, ba-ba-bi-big

    205. Equinox Gold (TSX: EQX) - Gotta do it, Gotta do it Big, Big, ba-ba-bi-big

    Interview with Christian Milau, CEO of Equinox Gold (TSX:EQX).Equinox Gold, listed around 2 years ago with Ross Beaty as the main shareholder, with goals to become a multi-jurisdiction, large-cap gold mining company. It's fair to say they have done it big, ba-ba big. Currently at $1.3Bn and seemingly faultless. So what next?Equinox has a promising portfolio of assets: Mequite Gold Mine, a Californian project producing 125,000-145,000oz gold per annum with an AISC of US$930-$980/oz and a grade of 0.46g/t gold (exclusive of reserves), Aurizona Gold Mine, a Brazilian gold mine producing 75,000-90,000oz per annum with inferred resources of 1.1Moz @ 1.98g/t gold (with an exploration upside) and an AISC of US$950-1025, Castle Mountain Gold Mine, an under-construction gold mine with a PFS and production potential of 200,000oz per annum and a 16-year life-of-mine, and a copper-focussed spin-out operation in the form of Solaris Copper Inc.Equinox has had a quite remarkable rise over the last few years, with its share price hovering around CAD$5 at the start of 2019, now standing at CAD$10.95 today. The market cap is an impressive CA$1.24Bn.We spoke with Milau about a variety of topics. Targets that were set have been well and truly delivered. Mequite and Aurizona are up and running, producing at a reasonable scale with a good AISC. Castle Mountain should be ready to rock by Q3/20. Equinox has kept things simple and it is reaping the rewards. The portfolio is focussed; thus, projects aren't lying around waiting to be put into production like they are for so many mining companies. Equinox's message is simple: make good acquisitions, and get that gold out of the ground! 11% insider ownership is another reassuring fact for investors, alongside a more diversified shareholder base than when we last spoke with Milau.More of the same for 2020? The management team seem confident. The Gold price is in their favour and with the ability to access cash for more acquisitions if they want to. Milau is trying to keep the tempo up and the marketing fervour measured. We can only see this getting better. Company page: https://www.equinoxgold.com/For FREE unbiased investment information, follow us on Twitter and LinkedIn:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/Take advantage, hear it here first: https://www.youtube.com/CRUXinvestor

    • 28 min
    204. Serabi Gold (TSX: SBI) - Ready or Not At All, So Close Enough to Taste It

    204. Serabi Gold (TSX: SBI) - Ready or Not At All, So Close Enough to Taste It

    Interview with Michael Hodgson, CEO of Serabi Gold (LSE:SRB, TSX:SBI).Off the back of yesterday's press release, Mike spoke to us to give us a bit more colour on the details about:1. The Public Hearing2. The result of the first months test on the new ore sorter.Company page: https://www.serabigold.com/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CRUXinvestor

    • 14 min
    203. Mogo Finance Technology Inc (TSX: MOGO) - Grab That Cash With Both Hands And Make A Stash

    203. Mogo Finance Technology Inc (TSX: MOGO) - Grab That Cash With Both Hands And Make A Stash

    Interview with Greg Feller, President of Mogo Finance Technology Inc (TSX: MOGO).Making money by educating Millennials/technically literate individuals? That's exactly what Vancouver-based digital challenger bank/neobank MOGO offers. This is an innovative company with a smart and dynamic management team. They think they can dramatically change the company's performance and valuation this year.Great product development track record (Carbon Credit Off-set Card anyone). Now we find out how they plan to develop the share price in 2020.In this interview with Feller, we wanted to get to the heart of MOGO's business plan and understand what sets them apart from the competition. Mogo was founded in 2003 by Feller and his brother, David Marshall Feller. MOGO offers a variety of neobanking service, such as personal loans, identity fraud protection, a cryptocurrency service, credit score facilities (via Equifax), prepaid visa cards and, as of January 2017, it now provides a mortgage brokering service.MOGO was listed in the TSX in 2015, and is also listed in the NYSE. The team is impressive and well versed in this sphere: Feller's background is in technology banking on Wall Street.Feller intends to target young people who lack financial awareness and education. Millennials are digitally minded, so creating a fun, unique and innovative platform, Mogo hopes to provide a better service than big institutional banks. Millennials can take control of their finances, particularly their credit scores, and avoid becoming sup-prime consumers with a mountain of interest payments of future borrowing. We have only a few worries. Is what Mogo does that unique and innovative to make it stand out? Is this all a little bit like a preachy parent telling their kids off? Will Millennials find this platform fun enough to make the effort to move from a bank they otherwise would have stayed with permanently? Is domestic Canada a big enough market, or should Mogo be looking to go international?Mogo has almost 1 million Members, with average revenue of CAD$70 per consumer, per annum. This compares interestingly to credit unions, who make an average profit of CAD$1,300 per consumer, per annum. Mogo believes it can grow to 2-3M members and a CAD$150 average revenue in the next 5 years and is currently gaining 20,000 subscribers per month.The share price has been largely stagnant for the last 5 years, and this might concern some investors. We need to see a catalyst for growth. Feller explains that Mogo's transition from the market perception of an on-balance sheet lender into an off-balance sheet fintech will be the spark that shareholders crave. Perhaps international strategic partners might help things, though Feller is quick to play this down.All in all, we feel MOGO is a great service, but can it return value for shareholders? Mogo has a share price of CAD$3.49 and a market cap of CAD$95M. It's been very static for the last 4-yrs, but Feller says this could be a break-out year if they can be seen as an off-balance sheet fintech. The valuation multiples change dramatically.Company page: https://www.mogo.ca/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CRUXinvestor

    • 36 min
    202. Search Minerals (TSX-V: SMY) - And Then, One Day, You Find, Ten Years Have Got Behind You

    202. Search Minerals (TSX-V: SMY) - And Then, One Day, You Find, Ten Years Have Got Behind You

    Interview with Greg Andrews, President and CEO of Rare Earths company, Search Minerals (TSXV: SMY).Search Minerals is a Critical Rare Earth Element (CREE) company, based in SE Labrador, Canada. Search Minerals owns several assets: The FOXTROT Deposit (PEA completed in April 2016), Deep Fox and Fox Meadow. Search Minerals claims it has identified more than 20 other prospects and has developed a 'proprietary, scalable, hydro-metallurgical process to optimise every opportunity to position as a competitive low-cost supplier of CREEs well into the future.'The share price has been low and in decline for over 10 years. It currently stands at CAD$0.04 (-25% on the year), with a market cap of CAD$8M and a large number of outstanding shares: 230M.Andrews explains the macro story behind CREEs, especially those outside of China, which dominates the space. According to Dr. Alex King, U.S. Department of Energy, Ames Lab Director, critical refers to “the stuff you need the most but can’t get enough of.” Examples of CREEs are Neodymium (Nd), Praseodymium (Pr), Europium (Eu), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y). They are used as components in high technology devices, including smartphones, digital cameras, computer hard disks, fluorescent/LED lights, flat-screen TVs etc. Search Minerals plans to produce Nd2O3 (Neodymium oxide) and Pr6O11 (Praseodymium oxide) and sell it to a metal maker.Andrews then talks about Search Minerals' resource. He says the mining infrastructure in place is impressive. The PEA on FOXTROT claims it has a 14-year life-of-mine (8 open-pit, 6 underground), with "decent" NPV values. FOXTROT has a total indicated resource of 7.39Mt and an inferred resource of 1.98Mt, with 4.9Mt of ore grade material at an average grade of 0.98% Total Rare Earth Elements (TREE). However, Andrews claims the Deep Fox property is more "compelling" because of the "surface expression" and higher grades. The scale has been extended.Search Minerals has raised around CAD$20M during its lifespan. However, Andrews states the company isn't sitting on much cash today. Has this money been spent wisely? Search Minerals attempted to raise CAD$500,00 November 2019. They only managed to raise CAD$70,000.It already owns several pilot plants, but Andrews explains that Search Minerals is about to build a 1% of scale demonstration plant. We ask how will this be financed and if the management team has the operational expertise to get this working? Exploration and pilot plants have not created much value for Search Minerals so far, so are its future plans going to work? Andrews points to the Deep Fox Resource economics as a game-changer, which will allow Search Minerals to have access to a 25-year life-of-mine, which can be extended as the company drills deeper. He also states that the Canadian government is very supportive of Search Minerals, and the jurisdiction is stable and favourable. Patented technology is another alleged positive, but can this be used economically and where is the evidence it will work?Investors will want to know about timescale. Search Minerals needs to raise around CAD$5M to get all of the necessary permits and licenses, to then build the demonstration plant, then produce the products for customers to test, then turn these short-term arrangements into long-term contracts. Andrews claims Search Minerals will be in production 4-years from now. Even if this number is to be believed, it is clear this is going to be a long wait for shareholders.  Company page: http://www.searchminerals.ca/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CR

    • 43 min
    201. Novo Resources Corp. (TSX-V: NVO) - The Music That We Play Will Ease Your Mind

    201. Novo Resources Corp. (TSX-V: NVO) - The Music That We Play Will Ease Your Mind

    Interview with Quinton Hennigh, President of Novo Resources Corp. (TSX-V:NVO).This is an unconventional mining investment story and one which is difficult to understand using conventional measures.Founded in 2009, Novo Resources is an Australian Gold Explorer with 3 projects: main focus is the Karratha Gold project; followed Beatons Creek Gold project and 70% interest in a number of tenements in the Marble Bar region of Western Australia. Novo Resources does not have a producing gold asset yet. But has a market cap of CAD$559M with 178M share outstanding.After being taken through an introduction of the geology, we were keen to get to the crux of the matter. The company presentation is very technical so not easily accessible or understood by Retail investors, nor us. The company has been in existence since 2009, we want to know what is the business plan is and how they have attained a large market cap with only a 1Moz Resource. And what are the known economics or numbers that have driven such a large valuation? What does the drill data look like? Hennigh says Beaton's Creek is close to a 1Moz Resource (with additional Exploration upside) at 2.5g/t, and is fully permitted but has not indicated an AISC for the project. So could it be profitable. We don't know.Hennigh also says there is "considerable Exploration potential." Hennigh then points towards coarse Gold and promising mineralogy at Karratha. Again no specifics, just macro at this stage. In terms of its Marble Bar Gold assets, Hennigh claims it is at a very early stage. This is a vast land package, which relies on a macro thesis about what they have in the ground? So as we said, it is an unconventional story and a little vague. Read our article on the website to get our view on their business.When pushed, Hennigh is adamant that unusual mineralisation is what sets Novo Resources apart, and it seems some of his earlier stage investors like Newmont agreed with him back in 2013 when they invested the bulk of their money. Since 2009, Novo Resources has raised c.CAD$85M-$90M. Novo Resources currently has c. CAD$35M in cash. The burn rate is less than CAD$1M per month. So they are under no financial pressure.Novo's plan is to put its projects into production. When will Beaton's Creek get into production? Novo is currently looking at acquiring a mill in the area around the mine. Novo expects to fund the mill through equity, keeping the cash for Exploration purposes. Hennigh hopes to lead a step-out programme to expand the gold resource and unlock value. Novo is looking at JV's with some companies.Company page: https://www.novoresources.com/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CRUXinvestor

    • 41 min

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