Company Interviews Crux Investor

Interview with Joe Hamilton, Chairman & CEO of Unigold Inc.
Our previous interview: https://www.cruxinvestor.com/posts/unigold-ugd-oxide-gold-pit-to-fund-2moz-project-1907
Recording date: 24th June 2024
Unigold Inc. (TSXV:UGD) presents an intriguing opportunity for investors seeking exposure to gold exploration and development in a stable Caribbean jurisdiction. The company's flagship Candelones project in the Dominican Republic holds significant potential, with a total resource of approximately 2.3 million ounces of gold equivalent.
Unigold is awaiting approval of its exploitation concession (mining permit) application, submitted in early 2022. The recent re-election of the pro-mining incumbent president is seen as a positive sign for the permitting process. Approximately 35% of Unigold's shareholders are Dominican investors, indicating confidence in the project's viability and likelihood of permit approvals. The Dominican Republic offers a stable economic environment with a functioning banking system and legal framework conducive to foreign investment.
For its phased development strategy, the company plans a low-capital, low-risk initial development of the oxide portion of the deposit: 3-year mine life producing about 30,000 ounces per year with an estimated capital expenditure of $25-30 million. Projected cash costs around $850 per ounce with the potential for rapid payback and strong IRR at current gold prices.
 Beyond the initial oxide project, Unigold holds a larger sulfide deposit that could support a more significant operation in the future. A joint venture agreement with Barrick Gold for exploration of part of Unigold's concessions provides validation and exposure to potential new discoveries without capital outlay. 
The primary catalyst for Unigold is the anticipated approval of the exploitation concession, expected in the latter half of 2024. This would allow the company to resume exploration drilling, complete detailed engineering studies, conduct environmental and social impact assessments, and progress towards a construction decision for the oxide project.
Unigold estimates total capital requirements of $25-30 million for the initial oxide project, with potential for 50-70% debt financing. The company's market capitalization currently reflects the uncertainties around permitting, potentially offering value for risk-tolerant investors.
Unigold represents a speculative but potentially rewarding opportunity in the gold sector. The company's assets in the Dominican Republic offer significant upside, particularly if permitting hurdles are overcome. The phased development approach, starting with a manageable oxide project, provides a pathway to near-term production and cash flow.
For investors comfortable with the risks associated with junior mining companies, Unigold offers exposure to a potentially significant gold project with multiple avenues for value creation. The company's success in securing permits and executing its development strategy could lead to substantial share price appreciation. However, as with any early-stage mining investment, thorough due diligence and an understanding of the inherent risks are essential.
View Unigold's company profile: https://www.cruxinvestor.com/companies/unigold-inc
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Ofer Vicus, Co-Founder & CEO, and Eric Appelman, CRO of Aduro Clean Technologies Inc.
Our previous interview: https://www.cruxinvestor.com/posts/aduro-clean-technologies-act-recycling-plastics-that-others-dont-2915
Recording date: 24th June 2024
Aduro Clean Technologies (TSXV: ACT) is positioning itself as a key player in the rapidly evolving fields of plastic recycling and heavy oil upgrading. The company's innovative Hydrochemolytic™ technology platform offers a promising solution to some of the most pressing challenges in waste management and resource utilization, potentially disrupting multi-billion dollar markets.
At the core of Aduro's value proposition is its ability to efficiently process low-value materials into higher-value products. The company's technology boasts several significant advantages over conventional methods, including lower energy requirements, higher tolerance for contaminants, and reduced need for pre-sorting or post-treatment. These features could translate into substantial cost savings and operational efficiencies for adopters of the technology.
CEO Ofer Vicus emphasizes the flexibility of their approach: "We basically can build smaller, cheaper units that can do higher value of product. It's less picky, so we have more options to deal with solutions rather than just to normalize something that is already there." This adaptability positions Aduro to address a wide range of market needs across the recycling and petrochemical industries.The company is pursuing a licensing business model, which allows for rapid scalability without the need for significant capital expenditures on plant construction. This strategy could potentially lead to high-margin revenue streams as the technology gains adoption. Aduro has developed a structured customer engagement program to guide potential clients through the process of evaluating and adopting their technology, providing multiple opportunities for revenue generation and relationship building.
Aduro's intellectual property portfolio, currently consisting of eight granted patents and one pending in the United States, provides a strong foundation for protecting its innovations and creating barriers to entry. The management team, led by industry veterans with significant technical and commercial experience, has expressed a commitment to further expanding this IP portfolio.
The global plastic recycling market alone is projected to reach $76.9 billion by 2028, growing at a CAGR of 8.5% from 2021 to 2028. This substantial market opportunity, combined with increasing regulatory pressures and corporate commitments to sustainability, creates a favorable environment for Aduro's technology.
However, investors should be aware that Aduro is still in the pre-revenue stage and faces the typical risks associated with commercializing new technologies. The company will need to successfully navigate the challenges of scaling up from laboratory and pilot demonstrations to full commercial implementation. Additionally, convincing large, established companies to adopt new technologies can be a slow process, and Aduro may face competition from other innovative solutions in development.
Near-term milestones for the company include converting more technology evaluators to collaborators, developing a semi-commercial unit, and expanding their patent portfolio. Successful achievement of these objectives could serve as catalysts for increased investor interest and potential value creation.
For investors seeking exposure to the growing trends of sustainability and circular economy practices, Aduro Clean Technologies offers an intriguing opportunity. The company's innovative technology, targeting large and growing markets, combined with its scalable business model and experienced management team, positions it well for potential growth. However, as with any early-stage technology investment, careful due diligence and ongoing monitoring of progress towards key milestones is essen

Interview with Tim Moody, President & CEO of Pan Global Resources Inc. and David Kelley, President & CEO of Chakana Copper Corp.
Recording date: 20th June 2024
Copper: A Critical Metal for the Clean Energy Future
Copper is emerging as a critical metal for the global transition to clean energy and sustainable technologies. Industry experts highlight a growing supply-demand imbalance that presents a compelling investment case for the red metal.
Demand OutlookThe demand for copper is expected to surge in the coming years, driven by both traditional industrial uses and the clean energy revolution. David Kelly, President and CEO of Chakana Copper, notes that some estimates suggest future demand could require "eight times the amount of copper mining that exists today." This dramatic increase is largely attributed to copper's essential role in electrification, renewable energy systems, and energy-efficient technologies.
Tim Moody, President and CEO of Pan Global Resources, adds context to this outlook, stating that copper consumption could double in the next 25 years. This translates to adding about a million tons of extra copper production annually – equivalent to the world's largest copper mine every year.
Supply ChallengesWhile demand projections are robust, the supply side faces significant hurdles:
Declining ore grades in existing minesIncreasing mining depths leads to higher costs and technical challengesUnderinvestment in exploration, resulting in a lack of new discoveriesLonger permitting and development timelines.These factors contribute to a potential supply gap that could support higher copper prices in the coming years.
Market Response and Investment Opportunity
The anticipated supply-demand imbalance is likely to drive copper prices higher, incentivizing new production and exploration. However, even with price increases, the industry faces a significant challenge in meeting future demand.
This scenario creates opportunities for investors, particularly in the junior exploration sector. Companies like Chakana Copper and Pan Global Resources are actively exploring for new copper deposits, aiming to contribute to future supply.
Key Considerations for InvestorsWhen evaluating copper investments, particularly in exploration companies, investors should consider:
Jurisdiction: The political and regulatory environment can significantly impact project development.Grade: High-grade deposits can be economically viable even at lower copper prices.Development timeline: Projects with the potential for near-term production may have an advantage.Exploration potential: Companies with large land positions and multiple target types offer more opportunities for discovery.Management experience: Teams with track records of successful discoveries and project development are crucial.While the long-term outlook for copper appears strong, investors should be aware of the risks associated with mineral exploration and development. These include geological uncertainties, potential for capital cost overruns, and sensitivity to commodity price fluctuations.
The copper market presents a compelling long-term investment case driven by strong demand fundamentals and supply-side challenges. As the world transitions to clean energy and increased electrification, copper's role becomes increasingly critical. While risks remain, including market volatility and the inherent uncertainties of mineral exploration, the overall outlook for copper is robust.
Investors considering exposure to the copper market may want to consider a diversified approach, including established producers and promising junior explorers. As always, thorough due diligence and understanding the specific risks associated with mineral exploration and development are essential.
—
Learn more: https://cruxinvestor.com/categories/commodities/copper
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Spencer Cole, CIO of Vox Royalty Corp.
Our previous interview: https://www.cruxinvestor.com/posts/vox-royalty-tsxvoxr-quality-portfolio-and-disciplined-strategy-drive-cash-flow-growth-5077
Recording date: 19th June 2024
Vox Royalty Corp (NASDAQ/TSX: VOXR) presents a compelling investment opportunity in the mining royalty sector, offering exposure to precious metals growth with a focus on risk-adjusted returns. As a relatively young player in the $70 billion mining royalty industry, Vox has positioned itself uniquely by emphasizing assets in stable jurisdictions and near-term production potential.
Founded a decade ago, Vox has demonstrated impressive growth, tripling its revenue over the past three years. The company's portfolio consists of 70 royalties, with approximately 80% weighted towards Australia, the United States, and Canada. This geographic focus underscores Vox's commitment to operating in politically stable regions with established mining industries.
Vox's strategy centers on acquiring royalties on projects expected to commence production within six months to three years. This approach aims to minimize the gap between investment and cash flow generation, a key consideration for investors seeking near-term returns. The company's recent acquisition of Australian gold royalties, including the Castle Hill project being developed by Evolution Mining, exemplifies this strategy. Set to begin production in early 2026, Castle Hill is expected to significantly boost Vox's revenue stream.
Despite its strong growth trajectory and strategic positioning, Vox faces challenges in market perception, particularly among North American investors less familiar with Australian mining operators. This perception gap has led to a potential undervaluation of Vox's Australian assets, presenting an opportunity for investors as these assets come online and generate cash flow.
The company's management team, owning a significant portion of Vox (up to 20% including the board), aligns closely with shareholder interests. This alignment is reflected in their approach to capital allocation, including the recent securing of a $25 million credit facility to fund growth without diluting existing shareholders.
Vox offers several attractive features: Focus on risk-adjusted returns in stable jurisdictions, a proven growth track record with clear path for future expansion, potential for value realization as underappreciated Australian assets come online, management alignment through significant ownership and exposure to favorable gold market dynamics.
Investors should still consider potential risks, including commodity price volatility and operational challenges at underlying mining projects. The competitive nature of the royalty sector and the company's relatively small size compared to industry giants are additional factors to weigh.
In conclusion, Vox Royalty represents an intriguing option for investors seeking exposure to the mining sector with a focus on managed risk and growth potential. As the company continues to execute its strategy and bring more assets into production, it has the potential to deliver significant value to shareholders. 
View Vox Royalty's company profile: https://www.cruxinvestor.com/companies/vox-royalty
Sign up for Crux Investor: https://cruxinvestor.com

Interview with David Reeves, MD of Calidus Resources Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/calidus-resources-asxcai-reignites-growth-with-financial-restructuring-production-milestones-5138
Recording date: 20th June 2024
Calidus Resources (ASX:CAI) is positioning itself as an emerging mid-tier gold producer in Western Australia, with a strategic acquisition set to potentially double its annual gold production. The company, which currently operates the Warrawoona gold mine, acquired the Nullagine project in December 2023 in a move that could significantly boost its output and financial performance.
The Nullagine acquisition, secured for a remarkably low upfront cost of A$250,000 with deferred consideration, represents a pivotal moment for Calidus. The project comes with substantial existing infrastructure, including a 1.8 million tonne per annum processing plant that was operational until recently. This acquisition is expected to increase Calidus' annual gold production to over 100,000 ounces, with initial production from Nullagine targeted at 30-40,000 ounces per year.
A key advantage of the Nullagine project is that its production will be unhedged, allowing Calidus to fully benefit from the current high gold prices, which are around A$3,500 per ounce. This is particularly significant given the company's existing hedge book and debt obligations associated with the development of the Warrawoona mine.
Calidus' Managing Director, Dave Reeves, emphasizes the transformative potential of this acquisition: "What we're trying to do is just get cash flow now. We've got a situation with our hedge and our debt over the next 18 months we need to sort, and this provides a massive boost in cash flow for us because it's all unhedged."
The company plans a phased approach to restarting production at Nullagine, focusing initially on two historical mines within the project area - Beatons Creek and Bartons. Beyond these initial targets, Nullagine offers significant exploration upside, with numerous deposits yet to be fully evaluated.
Investors should note that while Calidus presents a compelling growth story, it also faces challenges. The company is working to reduce its hedge book, which currently stands at 73,000 ounces, and manage its debt obligations. However, the increased cash flow from Nullagine is expected to accelerate these efforts.
The broader macroeconomic environment for gold remains supportive, with ongoing geopolitical tensions and economic uncertainties potentially sustaining high gold prices. This context enhances the attractiveness of Calidus' expansion strategy.
Calidus offers exposure to a growth story in the gold sector, with the potential for significant value creation as production expands and financial constraints are resolved. Key factors to monitor include Progress on the Nullagine restart and initial production figures, pace of debt reduction and hedge book unwinding, exploration results, particularly from high-potential targets, overall operational efficiency and cost management.
As Reeves notes, "There is a point where that debt and hedge is gone, and wow, it's a different company then." This encapsulates the potential transformation that Calidus could undergo in the near future, making it an intriguing prospect for investors seeking exposure to the gold mining sector.
View Calidus Resources' company profile: https://www.cruxinvestor.com/companies/calidus-resources-limited
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Dr. Mike Jones, MD of Impact Minerals Ltd. & Iggy Tan, Managing Director of Altech Batteries Ltd.
Recording date: 19th June 2024
The global shift towards renewable energy and electric vehicles is driving unprecedented demand for battery technologies and the metals that enable them. This transition presents a compelling opportunity for investors to participate in the growing battery metals market, which is poised for significant expansion in the coming years.
High Purity Alumina (HPA) has emerged as a critical component in battery technology, primarily used to coat separators and improve safety and performance. Dr. Mike Jones of Impact Minerals Limited highlights the importance of HPA in preventing thermal runaway in batteries, a key safety concern in the industry. The market potential for HPA is substantial, as evidenced by the success of companies like Alpha HPA, which recently reached a market cap of around a billion dollars and secured significant government funding.
Emerging technologies are also reshaping the battery landscape. Altech Batteries is developing a sodium chloride solid-state battery that offers several advantages over traditional lithium-ion batteries, including improved safety, longer lifespan, and wider temperature operating range. Importantly, this technology reduces reliance on critical metals that are often subject to supply constraints and price volatility.
The demand for battery metals is being driven by multiple factors, including the rapid growth of the electric vehicle market, increasing renewable energy integration, ongoing expansion of consumer electronics, and new industrial applications. This diverse demand base provides a robust foundation for long-term market growth.
However, investors should be aware of the challenges facing the industry. These include technological risks associated with scaling new battery technologies, funding hurdles for development and commercialization, evolving regulatory environments, intense market competition, and potential supply chain disruptions.
For those looking to gain exposure to the battery metals sector, there are several potential strategies. These include direct investment in mining companies, backing technology developers, considering vertically integrated players, or opting for diversified exposure through ETFs and index funds focused on the battery metals or clean energy sectors.
Government support is playing a crucial role in advancing battery technologies, with various funding avenues available including traditional debt, government grants, and green financing options. This support underscores the strategic importance governments are placing on battery technology development.
While the opportunities in battery metals are significant, investors should approach this sector with a clear understanding of the risks involved. Due diligence is crucial, focusing on companies with strong fundamentals, innovative technologies, and clear paths to commercialization.
As the world continues its transition to a more sustainable energy future, the role of batteries and energy storage will only grow in importance. By staying informed about technological advancements, market trends, and regulatory developments, investors can position themselves to potentially benefit from the ongoing revolution in energy storage and battery technologies.
Learn more: https://cruxinvestor.com/companies/impact-mineralshttps://cruxinvestor.com/companies/altech-batteries
Sign up for Crux Investor: https://cruxinvestor.com