Company Interviews Crux Investor

Interview with David Kelley, President & CEO of Chakana Copper
Our previous interview: https://www.cruxinvestor.com/posts/chakana-copper-tsx-v-peru-pivotal-3000m-drill-program-for-tier-one-potential-in-peru-5047
Recording date: 10th May 2024
Chakana Copper (TSX-V: PERU) is a Canadian mineral exploration company that is making significant strides in advancing its flagship Soledad project, located in the prolific Ancash mining district of Peru. The company's focus on high-grade copper, gold, and silver mineralization has positioned it as an attractive investment opportunity for those seeking exposure to the growing global demand for these metals.
Since 2017, Chakana Copper has been systematically exploring the Soledad project, which now encompasses a impressive 4,200 hectares of highly prospective land. The company's efforts have been rewarded with the discovery of numerous high-grade, outcropping tourmaline breccia pipes, which have consistently delivered strong copper, gold, and silver grades.
Recent drilling at the Estremadoyro breccia pipe has further highlighted the potential of the project, with intercepts of 1% copper, 0.6 g/t gold, and 26 g/t silver, equating to an impressive 1.65% copper equivalent grade. The presence of high-grade copper minerals such as bornite intergrown with chalcopyrite suggests the potential for even higher grades as exploration continues.
In addition to the high-grade breccias, Chakana Copper is also excited about the potential of its Mega Gold porphyry target. Porphyry deposits are known for their large size potential, and early indications from drilling at Mega Gold are encouraging. Visual observations of alteration and the presence of key minerals such as chalcopyrite and molybdenite suggest that the company may be onto a significant discovery.
Chakana Copper is currently in the midst of a 3,000-meter drill program, which is now being expanded based on the positive results received to date. This expansion is being supported by Gold Fields, a major shareholder in the company, which is a strong endorsement of the project's potential.
For investors, Chakana Copper offers a unique opportunity to gain exposure to a major new copper-gold-silver discovery in a well-established mining jurisdiction. The company's strong technical team, backed by supportive shareholders and a tight share structure, is well-positioned to unlock the value of the Soledad project as exploration continues.
With the global demand for copper, gold, and silver expected to remain strong in the coming years, driven by the growth of renewable energy, electric vehicles, and infrastructure development, Chakana Copper is poised to benefit from its strategic position in the market.
As the company continues to advance the Soledad project, investors can look forward to a steady stream of news flow, including drill results and resource updates, which have the potential to re-rate the stock as the true scale of the discovery becomes apparent.
In summary, Chakana Copper represents a compelling investment opportunity for those seeking exposure to the next major copper-gold-silver discovery in Peru. With a large, prospective land package, high-grade results, and a promising porphyry target, the company is well-positioned to deliver significant value to shareholders in the near term and beyond.
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Learn more: https://cruxinvestor.com/companies/chakana-copper
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Interview with Alex Black, Executive Chairman of Rio2 Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/rio2-tsxvrio-back-on-track-with-fenix-gold-project-4745
Recording date: 7th May 2024
Rio2 Limited, a junior mining company, has made significant progress in developing its Fenix Gold project in Chile. The company recently completed a successful $22 million equity financing round, surpassing its initial $8 million goal. This funding will support the project through to construction financing, which is anticipated in September 2024.
The strong participation from existing shareholders in the financing round validates the project's potential and the company's strategy. CEO Alex Black expressed his surprise and gratitude for the overwhelming support, especially considering the challenges faced by shareholders during the previous two years due to permitting issues.
The Fenix Gold project, which boasts 5 million ounces of gold reserves, is now well-positioned to move forward. The company has already completed substantial prefabrication work, and the funds raised will be used to reactivate alliance partnerships, remobilize people and equipment, and complete the assembly of the processing plant. Rio2 also plans to rehire many of the 80 professionals previously recruited in Chile.
One of the most significant developments for the project is the support it now receives from the Chilean government. After facing permitting obstacles in the past, the Fenix Gold project is now considered a priority in the Atacama region, with the Ministry of Economy and the Ministry of Mining fully backing its development. Environmental bodies have even admitted in writing that the project was wrongfully halted before. With strong community support and the Atacama governor's endorsement, Rio2 expects to obtain the remaining permits by August 2024.
Rio2 is targeting initial gold production at Fenix by the end of 2025. The mine plan involves stockpiling lower-grade ore while processing higher-grade material on the heap leach pad during the first few years to accelerate cash flows and loan repayment. The company also sees potential for expansion in years 3-5 of production, which could further enhance the project's value.
Despite unsolicited interest from larger mining companies, Rio2 remains focused on building value and bringing the project into production, rather than seeking a quick exit.
With a strong treasury, permitting on track, and key groundwork laid, Rio2 appears to be an attractive investment opportunity for those seeking exposure to a significant new gold producer. The company's current valuation may offer an appealing entry point, considering the recent permitting challenges and overall weakness in the gold market.
As the global gold mining sector faces the ongoing challenge of depleted reserves and declining grades, advanced-stage development projects like Rio2's Fenix Gold project are becoming increasingly scarce and valuable. With a proven management team, strong government and community support, and a clear path to production, Rio2 Limited presents a compelling investment case for those bullish on gold's long-term prospects.
View Rio2 Limited's company profile: https://www.cruxinvestor.com/companies/rio2-limited
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Interview with Sapan Ghai, CCO of Sovereign Metals Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/sovereign-metals-asxsvm-building-bigger-better-with-new-ops-team-4972
Recording date: 7th May 2024
Sovereign Metals (ASX:SVM) is an emerging critical minerals company focused on developing its flagship Kasiya project in Malawi into a globally significant source of natural rutile and flake graphite. With the world's largest rutile deposit and second largest graphite reserve, Kasiya is a strategic asset of immense scale and quality, well-positioned to address growing demand from the titanium pigment and lithium-ion battery markets.
The company recently delivered a robust Pre-Feasibility Study (PFS) that positions Kasiya to be the world's largest and lowest-cost producer of both rutile and graphite. Annual production is forecast at 222kt of rutile and 244kt of graphite over an initial 25-year mine life, with significant expansion potential. The project's NPV was estimated at US$1,605M (post-tax), with a low 4.3 year payback period and sector-leading operating margins.
Sovereign's strategic partnership with global mining leader Rio Tinto provides a strong endorsement of Kasiya's potential. With an experienced management team and Rio's financial backing, the company is well-funded to advance the project through the Definitive Feasibility Study (DFS) stage, targeted for completion by the end of 2024.
On the rutile front, Sovereign is set to capitalize on growing pigment demand and the ongoing structural supply deficit. Kasiya is the only major rutile deposit in development globally, and its low-cost profile positions it to displace higher-cost supply.
Graphite is an equally compelling opportunity, with exponential demand growth forecast as the EV revolution accelerates. Kasiya's unique saprolite-hosted mineralization allows for low-cost production of a premium 97% graphite concentrate, with very low impurities suitable for the battery anode supply chain. Recent test work has confirmed the commercial quality of Sovereign's graphite, paving the way for binding offtake contracts.
With a current resource supporting a multi-decade operation, exploration upside to further expand the asset base, and the optionality of titanium metal production via an innovative metallurgical process, Sovereign's growth runway is significant. Key upcoming catalysts include infill and extensional drilling results, completion of the DFS, and conversion of offtake MoUs to binding contracts.
Yet despite its world-class asset and industry-leading cost profile, Sovereign's market valuation remains at a steep discount to the project's NPV, with the company trading at just 0.2x its PFS valuation. As the company de-risks Kasiya and transitions towards production, the opportunity for a significant re-rating is clear. For investors seeking exposure to the clean energy transition and critical minerals thematic, Sovereign Metals is an undervalued name with multi-bagger potential.
View Sovereign Metals' company profile: https://www.cruxinvestor.com/companies/sovereign-metals
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Interview with Alex Holmes, COO of Nano One Materials Corp.
Our previous interview: https://www.cruxinvestor.com/posts/nano-one-materials-tsxnano-game-changing-battery-tech-receives-169m-investment-from-sumitomo-4028
Recording date: 7th May 2024
Nano One Materials, a Canadian technology company, is revolutionizing the production of cathode active materials, a critical component in lithium-ion batteries. With their innovative "one-pot" process, Nano One aims to significantly reduce costs, minimize environmental impact, and simplify the supply chain for cathode manufacturing.
The company's patented technology streamlines the production process, enabling a 20-40% cost reduction compared to traditional methods. By mixing lithium and other raw materials in a single reactor, drying the slurry, and calcining it in a kiln, Nano One's process reduces the number of steps, waste streams, and water usage. This efficient approach is compatible with various cathode chemistries, including lithium iron phosphate (LFP) and nickel manganese cobalt (NMC).
Nano One's business model focuses on licensing their technology to battery and auto manufacturers worldwide. This capital-light approach allows for rapid scalability and generates high-margin, recurring revenue through upfront fees and ongoing royalties. The company targets a $15 billion annual market opportunity outside China by 2035, with the potential to capture a 10% or greater market share.
To accelerate commercialization, Nano One has formed strategic partnerships with industry leaders such as Rio Tinto, Sumitomo Metal Mining, and Worley. These collaborations provide access to high-quality raw materials, engineering expertise, and established customer relationships. Rio Tinto's high-purity iron production in Canada integrates seamlessly with Nano One's LFP process, while Sumitomo is refining the LFP product to meet specific customer requirements.
The recent alliance with Worley is particularly significant, as it enables the joint marketing and licensing of a turnkey Cathode Active Material (CAM) plant design. This pre-engineered solution combines Worley's engineering know-how with Nano One's one-pot technology, allowing customers to accelerate project timelines and reduce technical risk.
In addition to licensing, Nano One operates a small-scale LFP production facility in Quebec. This facility serves as a proof of concept, provides samples for customer validation, and generates initial cash flow from specialty applications. The company plans to expand its capacity to 2,500-3,000 tons per annum.
While the company has yet to finalize a major licensing deal, the potential for substantial revenue growth is clear. As global battery demand is set to soar tenfold by 2030, driven by the adoption of electric vehicles and energy storage systems, Nano One is well-positioned to capitalize on this trend.
Investors should keep a close eye on key catalysts such as the signing of the first commercial licensing deal, expansion of production capacity, and achievement of downstream customer validation. Although risks and uncertainties remain, Nano One's unique, protected, and strategically validated technology presents a compelling investment opportunity in the rapidly growing battery industry.
View Nano One Materials' company profile: https://www.cruxinvestor.com/companies/nano-one-materials
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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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Interview with Francis MacDonald, Director & CEO of Li-FT Power Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/li-ft-power-tsxvllft-fast-tracking-to-beat-inevitable-lithium-oversupply-4843
Recording date: 3rd May 2024
Li-FT Power (TSXV:LIFT) is a lithium exploration and development company focused on hard rock lithium deposits in Canada. With the increasing global demand for lithium driven by the growth of electric vehicles and renewable energy storage, Li-FT Power is well-positioned to benefit from the long-term potential of the lithium market.
The company's flagship asset is the Yellowknife Lithium Project, located in the Northwest Territories. Over the past 10 months, Li-FT Power has completed approximately 50,000 meters of drilling at Yellowknife, with the results to date showing encouraging grades and widths. CEO Francis MacDonald described the results as "respectable" and believes there is potential to further expand the resource.
Li-FT Power is currently conducting metallurgical testing on the Yellowknife material, and an initial resource estimate is expected later this year. This resource estimate will provide investors with a first look at the size and scale of the lithium mineralization at the project.
While lithium prices have pulled back from their 2022 highs, Li-FT Power remains optimistic about the medium and long-term outlook for the lithium market. MacDonald believes that even at lower prices of $20-25,000/tonne for lithium carbonate, many projects would still be economically viable. He sees the current market as an opportunity, stating, "I think the time is now to be really focusing on lithium because it's a niche market. Things are getting built out. There will be a maximum amount of lithium that people will need and you want to make sure that you've captured some of that market."
The company is well-funded to continue advancing the Yellowknife project, having raised $10 million in March. These funds will be used for metallurgical work, an environmental baseline study to support permitting, and initial work at the company's earlier-stage Quebec project. Li-FT Power expects this capital to be sufficient to fund operations through the end of the year.
Geopolitical factors may also work in Li-FT Power's favor. As battery manufacturers seek to diversify their supply chains away from China to remain compliant with US regulations, lithium projects in stable jurisdictions like Canada could benefit from increased investment and strategic partnerships.
Investors should keep an eye on Li-FT Power as it continues to advance the Yellowknife project. The upcoming initial resource estimate will be a key catalyst for the stock, as it will provide a clearer picture of the project's potential. If the resource proves to be substantial and the company continues to hit its milestones, Li-FT Power could attract strategic interest and be well-positioned to benefit from the expected growth in lithium demand over the coming years. 
View Li-FT Power's company profile: https://www.cruxinvestor.com/companies/li-ft-power-ltd
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