Company Interviews Crux Investor

Interview with Jordan Trimble, President, CEO & Director of Skyharbour Resources.
Recording date: 17th April 2024
Skyharbour Resources is a high-grade uranium explorer and prospect generator with 29 projects in the Athabasca Basin in Northern Saskatchewan. They have built one of the largest project portfolios in the region and have seven partner companies advancing other projects. 
The CEO, Jordan Trimble, has been working in the mining industry for 14 years and has a background in finance and entrepreneurship. The company follows a prospect generator model, where they acquire and incubate uranium projects and bring in partner companies to fund exploration and advance the projects. They have structured earning option agreements with their partners, where the partners have to spend a certain amount on exploration and make cash and share payments to earn a stake in the projects. 
Skyharbour benefits by owning equity in the partner companies and retaining a minority interest and potentially an NSR royalty on the projects. They have already completed three out of seven earnings with their partner companies, potentially bringing in $80 million in combined project consideration. The company has also focused on their two co-flagship projects, Russell and Moore, which are located near the MacArthur River Mine and the Key Lake Mill. They recently raised $6.3 million in flow-through financing to fund their drilling programs at these projects. 
Skyharbour Resources is focused on uranium exploration in the Athabasca Basin in Canada. They have two main projects: the Moore Lake project and the Preston project. The company follows a hybrid model, combining self-funded exploration with strategic partnerships and joint ventures. They have a strong treasury and receive cash and stock payments from their partner companies. 
Skyharbour is currently conducting a winter drill program at the Russell project, with the goal of making a new high-grade discovery. They are also planning to drill at the Moore Lake project to expand and infill the high-grade zones. The company believes that the current uranium market conditions are favorable for exploration and expects to see a higher valuation and lower cost of capital if they are successful in their drilling programs.
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Interview with Max Porterfield, President & CEO of Callinex Mines Inc.
Our previous interview: https://www.cruxinvestor.com/posts/callinex-mines-tsxvcnx-unlocking-high-grade-copper-potential-with-innovative-exploration-approach-5040
Recording date: 17th April 2024
Callinex Mines (TSX-V:CNX) is a mineral exploration company focused on advancing its portfolio of high-grade copper-gold-rich volcanogenic massive sulfide (VMS) discoveries in the Flin Flon Greenstone Belt of Manitoba, Canada. With a century of production history and well-established mining infrastructure, the Flin Flon district presents a compelling opportunity for new discoveries, and Callinex is well-positioned to capitalize on this potential.
The company's flagship Pine Bay project has been the focus of innovative exploration techniques, particularly the use of magnetotellurics (MT) surveys, which have proven crucial in identifying hidden alteration systems associated with VMS deposits. Recent MT survey results have revealed a significant new resistivity low anomaly spanning 700 by 1,100 meters between the interpreted Pine Bay and Rainbow horizons, presenting a compelling untested exploration target.
Callinex's near-term plans include expansion drilling at the high-grade Flin Flon discovery, targeting higher grades at depth, and drill testing the edges of the new MT anomalies. Positive drill results from these initiatives could significantly expand the size and scale of the known discoveries and potentially lead to new near-surface finds, enhancing the economic potential of the project.
Investors can anticipate a steady stream of news flow in the coming weeks and months as Callinex awaits the results of additional MT survey lines and continues to advance its exploration efforts. The company's strong technical team, led by President & CEO Max Porterfield, has a proven track record of success in the district and is committed to creating value through discovery.
Callinex is well-funded, with approximately six months of working capital available, and is poised to benefit from the rising global demand for copper and gold, driven by the transition to clean energy and electrification. As market sentiment improves and base metal prices continue to rise, the company's high-grade VMS projects could command higher valuations and generate increased investor interest.
Furthermore, as Callinex continues to deliver exploration success and de-risk its projects, the company may attract interest from larger mining companies seeking to secure high-quality copper-gold assets. Strategic partnerships or acquisitions could provide significant value creation opportunities for shareholders.
In conclusion, Callinex Mines represents a compelling investment opportunity in the junior mining sector, with its strategic land position in the prolific Flin Flon mining district, innovative exploration approach, and potential for near-term value creation. As the company continues to unlock the value of its Pine Bay project and advance its other exploration initiatives, investors can anticipate significant upside potential. With a strong technical team, favorable market conditions, and a robust pipeline of high-grade copper-gold targets, Callinex is well-positioned to emerge as a leading explorer in the Flin Flon district and deliver outstanding returns for shareholders.
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Interview with Eric Zaunscherb, Chairman of Critical Elements Lithium (TSX-V:CRE), Terry Lynch, CEO of Power Nickel (TSX-V:PNPN) and Brendan Yurik, CEO of Electric Royalties (TSX-V:ELEC)
Recording date: 16th April 2024
The battery metals sector is at a critical juncture, with recovering demand and constrained supply fundamentals diverging from depressed equity valuations. This was the key takeaway from a recent roundtable discussion featuring the CEOs of Critical Elements Lithium (CRE.V), Power Nickel (PNPN.V), and Electric Royalties (ELEC.V).
Lithium prices have pulled back significantly from their 2022 highs, but Eric Zaunscherb, CEO of Critical Elements, believes the market is bottoming. "We're already seeing a bottoming of the market in terms of the spot [prices] that everyone follows," he noted, pointing to the wide differential between reported spot prices and recent auction results. He sees structurally higher prices as necessary to incentivize new supply to meet growing EV and energy storage market demand.
Critical Elements is advancing the Rose Lithium-Tantalum Project in Quebec, one of the most advanced large hard rock lithium projects globally. With a 17-year mine life and high-purity spodumene concentrate that could command a premium price, Rose is well-positioned to help fill the lithium supply gap. The company is finalizing project financing and aims to start construction this year.
In the nickel market, Power Nickel CEO Terry Lynch sees a tale of two markets. The high-purity Class 1 nickel used in batteries trades at a premium in Europe and North America compared to the lower-grade material prevalent in the seaborne market. He believes nickel miners in Canada are insulated from price volatility, especially given the strict sourcing requirements for EV tax credits under the US Inflation Reduction Act.
Power Nickel recently announced a potentially game-changing discovery at its NISK nickel-copper-PGM-gold project in Quebec. The Copernick Zone returned high grades over wide widths in initial drilling, and a feasibility study for a stand-alone refinery is also underway. Power Nickel could accelerate development by producing finished nickel and cobalt products.
Electric Royalties offers a compelling option for investors seeking diversified exposure to the battery metals theme. The company has quickly assembled a portfolio of 71 royalties across 9 clean energy metals, with several expected to start generating cash flow in 2024. CEO Brandon Munro believes the company is significantly undervalued, with a market cap of less than C$30 million compared to expected annual royalty payments of C$7 million from just one asset.
While risks remain, including a potential recession or renewed COVID lockdowns, the fundamentals for battery metals are clearly improving. Investors should focus on quality projects in stable jurisdictions with experienced management teams and look for opportunities to gain exposure at attractive valuations. Critical Elements and Power Nickel stand out for their high-grade, scalable projects in Quebec, while Electric Royalties offers diversification across a broad portfolio of advanced-stage royalties.
With the electrification trend accelerating and supply struggling to keep pace, the disconnect between battery metal fundamentals and equity valuations appears unsustainable. As the market rerates, investors positioned in quality names could be rewarded with significant upside. The CEOs at the roundtable were unanimous in their bullish outlook - the question is not if, but when the market will reflect the underlying reality.
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Learn more: https://cruxinvestor.com/companies/critical-elements-lithium
https://cruxinvestor.com/companies/power-nickel
https://cruxinvestor.com/companies/electric-royalties
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Interview with Warwick Smith, Director & CEO of American Pacific Mining Corp.
Recording date: 15th April 2024
American Pacific Mining Corp.  offers investors compelling exposure to high-grade copper and gold assets in mining-friendly U.S. jurisdictions. The company's portfolio is headlined by the Palmer VMS project in Alaska and the Madison skarn-porphyry project in Montana.
At Palmer, American Pacific has attracted a major partner in Japanese smelting company Dowa Metals & Mining. DOWA is aggressively advancing the project, with plans to spend C$17 million (US$12.8 million) on exploration in 2024. The company is targeting the expansion of the existing 14 million tonne high-grade copper-zinc-gold-silver resource, as well as testing multiple untested prospects across the property. Recent drilling has yielded exceptional results, including 23 meters grading 11% copper equivalent. American Pacific is well-positioned to benefit from this aggressive partner-funded program, while retaining a meaningful 32% stake in the project.
At Madison, American Pacific recently regained 100% ownership of the project following the amicable dissolution of a joint venture with mining major Rio Tinto. Past drilling has intersected high-grade skarn mineralization, such as 14m @ 12 g/t gold and 0.5m @ 146 g/t gold. The company is now planning a $2 million drilling program to follow up on these results and test deeper porphyry targets. If successful, Madison has the potential to become a flagship asset for American Pacific.
Beyond Palmer and Madison, American Pacific holds a portfolio of earlier-stage projects in Nevada. The company is actively seeking joint venture partners to advance these assets, providing additional optionality for investors.
American Pacific is well-funded to advance its key projects, with $6.5 million in working capital. The company's tight share structure and strong institutional backing, including from mining financier and major shareholder Michael Gentile, provide a solid foundation for growth.
Looking ahead, American Pacific appears well-positioned to benefit from a rising commodity price environment. The global shift towards electrification and renewable energy is expected to drive strong demand for copper, while gold looks well-supported by persistent inflation and geopolitical risks. As CEO Warwick Smith explains, "The world's going to go green through copper… If the world's going to go green, it's going green through copper."
With an active exploration program planned for 2024, American Pacific offers investors multiple potential catalysts for share price appreciation. If the company is successful in expanding the high-grade resources at Palmer and Madison, it may be able to attract a major mining company to acquire and advance these projects. As a well-funded junior with quality assets in tier-one jurisdictions, American Pacific stands out as a compelling speculative opportunity in the junior copper and gold space.
View American Pacific Mining's company profile: https://www.cruxinvestor.com/companies/american-pacific-mining-corp
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Interview with Chris Stevens, CEO of Coda Minerals Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/coda-minerals-cod-robust-npv-in-south-australia-copper-scoping-study-3044
Recording date: 16th April 2024
Coda Minerals (ASX:COD) is an emerging copper-cobalt developer focused on the Elizabeth Creek project in the heart of South Australia's copper country. With a large resource base, compelling project economics, and multiple avenues for value creation, Coda offers investors a unique opportunity to gain exposure to the strong long-term fundamentals of the copper and cobalt markets.
Elizabeth Creek is a significant copper-cobalt deposit, with a JORC resource of over 500,000 tonnes of contained copper and 23,000 tonnes of contained cobalt. A recent Scoping Study outlined an 11-year mine life operation producing 25,000-27,000 tonnes of copper and 1,300 tonnes of cobalt per annum, with robust economics including a pre-tax NPV of A$735 million and IRR of 31%.
Importantly, the study results are considered conservative, with multiple opportunities identified to further optimize and enhance returns. Since the initial study, Coda has undertaken optimization work focused on the underground portion of the mine plan, delivering an impressive 30% increase in NPV. CEO Chris Stevens sees significant potential for additional improvements through resource growth, metallurgical optimization, and mine scheduling.
A key point of differentiation for Elizabeth Creek is the unique nature of its cobalt endowment. The cobalt is hosted in a rare mineral called Carrollite, which is amenable to conventional processing through flotation and pressure oxidation, with recoveries of over 90%. This is a major advantage over other Australian cobalt projects, which typically face technical challenges in extracting the cobalt. The cobalt component of Elizabeth Creek could therefore command a strategic premium, particularly given concerns around security of cobalt supply.
As a junior company, the key challenge for Coda is funding the development of Elizabeth Creek. Management's preferred pathway is to secure a strategic partner to finance the project through to production. Discussions are ongoing with a range of potential counterparties, and the company has prepared a comprehensive data room. Alternative funding options, such as a partial asset sale or joint venture, are also being evaluated. Importantly, Coda is not currently contemplating a highly dilutive equity raise.
In the near term, Coda will continue to focus on optimization work to enhance the project economics and further de-risk the development. Key upcoming catalysts include drill results, updated resource estimates, metallurgical test work, and release of the Pre-Feasibility Study. As these milestones are delivered, Coda should be well positioned to secure an attractive funding package and advance Elizabeth Creek towards development.
With a market capitalization of just A$20 million, Coda trades at a deep discount to the NPV of its flagship asset and to comparable peers in the copper space. As the company continues to systematically derisk and add value to Elizabeth Creek, there is potential for significant share price upside. For investors looking for exposure to the compelling long-term fundamentals of copper and cobalt, Coda Minerals presents a unique opportunity.
View Coda Minerals' company profile: https://www.cruxinvestor.com/companies/coda-minerals-ltd
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Interview with Mike Hodgson, CEO of Serabi Gold Our previous interview: https://www.cruxinvestor.com/posts/serabi-gold-lse-srb-unlocking-value-through-high-grade-gold-mining-and-sustainable-practices-5018 Recording date: 16th April 2024 
Serabi Gold (LSE: SRB, TSX: SBI), led by CEO Mike Hodgson, is making steady progress advancing its two Brazilian gold assets, the Palito Mining Complex and Coringa Project, both located in the prolific Tapajos region. Despite facing permitting delays and financial constraints in recent years, Serabi has persevered and is now well-positioned to deliver significant production growth. 
A key tailwind currently is the surging gold price, not just in US dollars but also Brazilian Reais. At over R$12,000/oz, gold is trading at all-time highs in Brazil. With the majority of Serabi's costs in Reais, this provides a huge margin expansion opportunity. "If gold price goes up in Reais, it goes right to the bottom line," explains CEO Mike Hodgson. 
This is timely as Serabi ramps up production, especially at Coringa. Key milestones are the installation of a crushing circuit in early Q3 and the addition of an ore sorter by end of Q3. The ore sorter will allow processing of stockpiles to produce a high-grade plant feed. "In Q4 we're going to have a bumper quarter with lots of stockpile to put through that ore sorter," notes Hodgson. 
Looking ahead, Serabi sees a clear pathway to grow to 60,000 oz/year and potentially beyond. The keys are the Coringa ramp-up, debottlenecking and expansion at Palito, and modest capital expenditures. An updated resource, reserve, and PEA is planned for Q3 to support this.
While Serabi's near-term focus is on production growth, it also sees strong potential for new discoveries nearby. A recent 12-month exploration alliance with Vale allowed Serabi to advance several promising gold prospects with $2.5M of funding. Targets like Calico have the potential to become new Palito-type high-grade deposits. 
The investment case for Serabi is compelling:
Proven management team with deep Brazilian experiencePath to 60,000 oz/year production from two minesExposure to record high gold prices in Brazilian ReaisPending Q3 permit and PEA milestones to de-risk assetsStrategic land position in prolific gold belt with discovery potentialIncreasingly self-funded growth from expanding marginsWhile Serabi has overcome challenges in recent years, it is now in a strong position to realize its projects' potential. "All being well, we'll have a pivotal Q3 with the PEA done, full permits received, and the ore sorter switched on," concludes Hodgson. "That will be a real milestone for us."For investors seeking a growing gold producer with a clear path to production and margin growth, Serabi Gold presents an attractive opportunity. With key catalysts pending, the company is poised for an exciting year ahead. 
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