Company Interviews Crux Investor

Interview with Louis-Pierre Gignac, President & CEO of G Mining Ventures.
Our previous interview: https://www.cruxinvestor.com/posts/g-mining-ventures-tsxgmin-producing-gold-by-year-end-4938
Recording date: 23rd April 2024
G Mining Ventures, led by President and CEO Louis-Pierre Gignac, has announced a merger with Reunion Gold to acquire the Oko West project in Guyana. This strategic move aligns with G Mining's goal of becoming an intermediate gold producer, targeting an annual production of 500,000 ounces.The Tocantinzinho mine, currently under construction by G Mining, is 89% complete and expected to start producing gold within the next three months. With an average annual production of 175,000 ounces, Tocantinzinho is projected to generate over $200 million in cash flow per year. The merger with Reunion Gold will enable G Mining to redeploy this cash flow towards the development of Oko West, minimizing shareholder dilution.
Gignac and his team have conducted extensive due diligence on the Oko West project, including site visits and meetings with the President of Guyana. The Guyanese government has expressed strong support for the mining industry and the swift development of Oko West. G Mining's management expertise, coupled with the financial backing of major shareholders La Mancha and Franco, who have committed $25 million each to support early works, positions the company well to advance the project rapidly.
Despite concerns about the "Venezuela factor" and a longstanding boundary dispute, G Mining remains confident in the stability of Guyana's mining sector. The dispute is expected to be resolved through international courts, with support from key players such as Brazil, the United States, and European nations.
The merger between G Mining and Reunion Gold is expected to close in the beginning of the third quarter, following a shareholder vote. As part of the transaction, a spin-off company will be created to hold Reunion's exploration assets in French Guiana and Suriname, with G Mining retaining a 19.9% stake and the option to maintain its pro-rata share in future funding rounds.
Gignac sees potential for the Oko West project to produce 200,000 ounces of gold annually, with a combination of open-pit and underground mining. The company plans to refine the trade-offs between the two mining methods and optimize the timing of underground development. The high-grade underground resource, with an average grade of 3 grams per tonne, is expected to complement the open-pit operation and create significant value.
G Mining's institutional shareholders have responded positively to the merger announcement, recognizing the strategic fit and the company's ability to leverage its expertise and systems in developing the Oko West project. With a strong track record of building mines in the Guiana Shield and a network of experienced Guyanese expats, G Mining is well-positioned to integrate the Reunion Gold team and advance the project seamlessly.
As gold prices continue to rise, reaching nearly $2,400 per ounce, the timing of this merger and the anticipated start of gold production at Tocantinzinho appears to be ideal for G Mining Ventures and its shareholders. The company's strong financial position, experienced management team, and strategic partnerships place it in an excellent position to capitalize on the growing demand for gold and create significant value for investors in the years ahead.
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Learn more: https://cruxinvestor.com/companies/g-mining-ventures
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Interview with Chairman & CEO Paul Huet, Karora Resources and Wayne Bramwell, Managing Director of Westgold Resources.
Our previous interview: https://www.cruxinvestor.com/posts/karora-resources-tsxkrr-westgold-merger-creates-gold-powerhouse-5192
Recording date: 19th April 2024
Karora Resources and Westgold have announced a merger that will create Australia's third largest gold company, with annual production of 400,000 to 450,000 ounces. The combined entity will have a proven management team, a focus on profitable ounces, and significant organic growth potential.
The merged company brings together two teams that have successfully executed operational turnarounds in recent years. Karora Chairman and CEO Paul Andre Huet praised his counterpart, saying, "What an amazing journey, only in this for two years...What a better man - you don't want this in the best person to run our company. That's the kind of person we want. Don't worry so much about making the ounces every time. Worry about making money."
Under Wayne Bramwell's leadership, Westgold has pivoted from a "myopic focus on producing gold at all costs" to a more sustainable model centered on margin and free cash flow. By shutting down money-losing mines, redeploying resources, and empowering site teams, Bramwell and his team have generated positive cash flow for five straight quarters.
The merger will allow the combined company to apply this cash flow focus to Karora's assets, which include the high-potential Beta Hunt mine. Bramwell sees an opportunity to reduce contracting costs by deploying Westgold's extensive mining fleet. "Removing those contractors and driving the cost out, replacing them with the expanded Westgold resources is going to be a quick win," he explained.
The combined company will also have significant organic growth potential. Westgold is acquiring additional drill rigs, with plans to "give at least three to Steve Devlin and the team at Beta Hunt to basically start beating the hell out of that asset," according to Bramwell. Huet noted that the company's free cash flow generation will allow it to both pay dividends and reinvest in high-return projects.
Given the shared focus on profitable growth and the existing relationships between the Karora and Westgold teams, the companies expect a smooth integration focused initially on back-office synergies and learning the combined asset base. "You probably won't start to see the real market-visible integration until probably the second or the third quarter," said Bramwell.
For investors, the merged company presents a compelling opportunity to gain exposure to a leading mid-tier gold producer with scale, free cash flow, and organic growth. The combined management team has a demonstrated track record of operational execution and margin-focused decision-making. With a larger profile and potential index inclusion on the horizon, the company appears well-positioned for a re-rating as the gold industry continues to consolidate.
While the merger is not without risks, including the inherent challenges of integrating two companies, the strategic rationale is sound and the potential rewards are significant. As Huet put it, "Watch what happens with the rerate when the ASX 200 comes in, when the GDX comes in, all those ETFs comes in. People will see, wow, this is one heck of a great story. This is a great company led by a great man."
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Learn more: https://cruxinvestor.com/companies/karora-resources
https://www.cruxinvestor.com/companies/westgold-resources-limited
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Interview with Interview with Mark Chalmers, President & CEO of Energy Fuels Inc.
Our previous interview: https://www.cruxinvestor.com/posts/energy-fuels-amexuuuu-riding-the-uranium-wave-preparation-for-rare-earths-rebound-5019
Recording date: 21st April 2024
The recently announced merger between Energy Fuels and Base Resources is a transformative transaction that significantly enhances Energy Fuels' position in the rare earths sector. By acquiring the Toliara heavy mineral sands project in Madagascar, Energy Fuels gains access to a world-class asset with the potential to be a long-life, low-cost source of monazite feedstock for its growing rare earths business.
The Toliara project boasts an impressive 1.4 million ton monazite resource, with an additional 800,000 ton inferred resource, making it one of the largest undeveloped deposits globally. Importantly, the monazite is contained within the heavy mineral sands at an average grade of 2%, which is relatively high and should enable low-cost extraction as a byproduct of the titanium and zircon production.
Based on the DFS and PFS studies completed by Base Resources, the Toliara project has the potential to produce 22,000 tons of monazite per year over a multi-decade mine life. At full production, this could generate annual EBITDA of $350-400 million, making it a financially robust operation even before considering the rare earths upside.
For Energy Fuels, securing access to this large-scale, long-life monazite supply is a key step in its strategy to become a leading global rare earths producer. The company is already in the process of commissioning its Phase 1 rare earths separation circuit at the White Mesa Mill in Utah, which will have the capacity to process 2,500 tons of monazite per year. With the addition of Toliara, Energy Fuels will have enough feedstock to support a much larger Phase 2 and 3 expansion, potentially positioning it as one of the largest non-Chinese rare earths producers.
Another benefit of the transaction is the addition of Base Resources' experienced management team and operating expertise. Base has a proven track record of developing and operating heavy mineral sands projects, most notably the Kwale mine in Kenya which has been a consistent cash flow generator. This should help de-risk the development of Toliara and provide valuable knowledge sharing as Energy Fuels ramps up its own rare earths operations.
From a macro perspective, the merger also enhances Energy Fuels' geopolitical positioning. With the US and other Western countries increasingly focused on securing critical mineral supply chains outside of China, having a large-scale rare earths project in Madagascar helps diversify global production. Energy Fuels' White Mesa Mill in Utah is the only licensed and operating conventional uranium mill in the US, making it a strategic asset for domestic processing of uranium and rare earths. The combination of US processing capabilities and non-Chinese monazite feedstock should be highly attractive to Western governments and end-users looking to shore up rare earths supplies.
Overall, the merger with Base Resources checks a lot of boxes for Energy Fuels. It provides a large, long-life source of low-cost monazite feedstock to fuel the company's rare earths ambitions. It adds geographic diversity and operating expertise in heavy mineral sands. And it enhances the company's positioning as a strategic Western supplier of critical materials. For shareholders, the transaction brings significant rare earths exposure and growth potential, complementing Energy Fuels' existing uranium business. As the world focuses on electrification and decarbonization, Energy Fuels is positioning itself to be a key player in supplying the necessary critical minerals, which should create meaningful value over time.
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Learn more: https://cruxinvestor.com/companies/energy-fuels
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Interview with Dan Noone, CEO fo G2 Goldfields Inc.
Our previous interview: https://www.cruxinvestor.com/posts/g2-goldfields-tsxvgtwo-advancing-a-new-high-grade-gold-district-in-guyana-5065
Recording date: 18th April 2024
G2 Goldfields (TSXV:GTWO) presents a compelling opportunity for investors looking for exposure to a high-grade gold story in a mining-friendly jurisdiction. The company's flagship project in Guyana boasts a recently updated resource of over 2 million ounces of gold, including an impressive high-grade component.
In an interview with CEO Dan Noone, he highlighted G2's focus on expanding the resource through aggressive exploration drilling. The company plans to drill 75,000 meters this year with five rigs to grow the resource along the mineralized trend extending from the main OKO Main and Ghanie zones.
Noone sees strong potential to define significant near-surface ounces in the OKO Northwest, Tracy, and Aremu areas, which could enhance the project's economics and appeal to a potential acquirer. G2 Goldfields is also taking proactive steps to streamline the timeline to production and maximize the project's value for an eventual takeover. Initiatives include launching a two-year environmental baseline study, conducting metallurgical testing, and storing drill core on site.
Noone believes consolidation of the district is likely, with G2's southern neighbor Reunion Gold a potential acquisition target by a major in the near-term. The interview also touched on the state of the broader gold market, with Noone noting increasing interest from retail and generalist investors, particularly in Europe and Asia. While North American investors have been slower to embrace the gold story, G2 Goldfields sees the makings of a genuine bull market.
As sentiment toward gold continues to improve, G2 Goldfields appears well-positioned to benefit. With a large, high-grade resource base in a sought-after jurisdiction, a strong exploration pipeline, and strategic initiatives to drive value, the company offers investors a timely opportunity to gain leveraged exposure to a rising gold price.
The investment case for G2 Goldfields is further bolstered by the company's attractive valuation relative to peers and the potential for a near-term catalyst in the form of a district consolidation. With several majors already invested in Guyana, G2 could emerge as a prime takeover target as it continues to grow its resource and advance the project.
In summary, G2 Goldfields represents a highly prospective gold exploration and development story in a favorable jurisdiction. As the company expands its high-grade resource and works to maximize the project's value, shareholders stand to benefit from a re-rating in the market and the potential for a lucrative takeout. G2 Goldfields warrants a closer look from investors seeking exposure to an under-the-radar gold opportunity with significant upside potential.
View G2 Goldfields' company profile: https://www.cruxinvestor.com/companies/g2-goldfields
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Interview with Jeff Quartermaine, Chairman & CEO of Perseus Mining Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/perseus-mining-pru-burgeoning-production-growth-targets-in-focus-600
Recording date: 12th April 2024
Perseus Mining (ASX/TSX:PRU) is hitting its stride as a rising mid-tier gold producer, with a clear strategy to grow production and mine life at its West African operations while expanding into new frontiers through the Nyanzaga acquisition in Tanzania and a strategic alliance in the Arabian-Nubian Shield.
In a recent interview, Chairman and CEO Jeff Quartermaine outlined Perseus' multipronged approach to create value in a rising gold price environment. While optimizing its existing Ghana and Côte d'Ivoire mines remains the core focus, Perseus is pursuing an ambitious growth agenda to boost its scale and longevity.
The centerpiece is the Nyanzaga project in Tanzania, acquired from OreCorp. Quartermaine sees potential to significantly expand the mine's throughput and life compared to OreCorp's plans, targeting first production in 2025. With $450-500 million in development capex funded from its balance sheet, Nanzaga offers a clear path to growth at attractive economics.
Investors will be eyeing upcoming catalysts including infill drilling to expand resources, completion of engineering and design work, and resettlement milestones. "Nyanzaga could be a lot better than people expected, just like Yaouré which also had its naysayers," Quartermaine remarked, referencing Perseus' Ivorian mine which has exceeded expectations.
Equally exciting is Perseus' new frontier in the Arabian-Nubian Shield through a strategic alliance with Saudi conglomerate Ajlan Brothers. Quartermaine believes the partnership's combination of Perseus' technical expertise and Ajlan's regional clout and funding heft is a "potential game-changer" in this prospective but underexplored region.
One early initiative could see the partners join forces to develop Perseus' Meyas Sand gold project in Sudan, reducing Perseus' solo risk. More broadly, Quartermaine hinted at a rich deal pipeline that could meaningfully move the needle for Perseus. "This could be a case of 2 and 2 equals 6 rather than 4 or 5."
Of course, delivering from Perseus' existing mines remains the top priority. Quartermaine highlighted efforts to extend mine lives at the Edikan and Sissingué operations through near-mine exploration, cost optimization to process lower-grade ore, and expanding pits using higher gold price assumptions.
With Perseus' strong track record of reserve replacement and a motivated workforce aligned to keep mines running longer, investors can have confidence in the company's base case.
The pieces are falling into place for Perseus to potentially re-rate and narrow its valuation discount to peers. Quartermaine attributed the gap to outdated perceptions around its African operating base and history of short mine lives - factors the company has addressed head-on with its recent growth initiatives.
As Nyanzaga advances towards production and the Ajlan partnership bears fruit, Perseus' growth potential should become more apparent. With leverage to a rising gold price and a proven team at the helm, Perseus offers a compelling risk-reward proposition for investors seeking a disciplined growth story in the gold sector.
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View Perseus Mining's company profile: https://www.cruxinvestor.com/companies/perseus-mining
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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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Learn more: https://cruxinvestor.com/companies/skyharbour-resources
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