Investing Opportunities in Battery Metals

[Music] hi my name is Eric zoner I'm the chair of critical elements lithium ticker CR on the Venture exchange critical elements is the um owner of The Rose Project in E CH Quebec it is one of the most advanced uh Hard Rock lithium projects globally and uh we are primed to to move forward shovel ready this summer we're in the process of putting together the project financing for the the company and we are also reaccelerating exploration as indicated by some recent excellent results in the new discovery at Rose West hi my name is Terry Lynch uh and I'm the CEO of power nickel uh Power nickel is advancing the highr nickel sulfide project at namaska just down the road from my friend and partner and shareholder Eric uh in namaska Quebec and yesterday we announced an amazing discovery of a of a serious material copper PGM gold uh uh Zone called uh the lion Zone that uh is going to add a second element to our story that uh super high-grade uh uh project that's near surface um that's really quite startling so look for a lot more good news on that shortly I'm Brandon Yuri uh the CEO of electric royalties we are a royalty company focused exclusively on clean energy metals uh and we're closing a transaction imminently that will basically take us up to 40 royalties in our portfolio Diversified across nine different clean energy Metals uh along with 31 properties that are already optioned out to third parties uh that we'd hope to become royalties in the near future um and so yeah lots of good stuff coming this year we've had a ton of developments over the last 24 months over 500 million raised by operators that's all going into our assets uh to develop them at no cost to us and uh we expect a lot more of that to come here in 2024 brilliant guys thanks for joining us we're talking about battery Metals today I think something which people expected to really kind of take off last year hasn't didn't quite get there um specifically today we're going to be looking at the lithium thematic the nickel thematic I think T's going to go poly metallic on us uh and Brandon you can probably reach across most of the most of those medals too so um let me start with you I mean lithium went on a run till the end of 2020 came off dramatically last year people are unsure how to read that this very nent industry of lithium is it going to make a comeback in my opinion absolutely uh we're already seeing a bottoming of the market in terms of the spot that everyone follows even though that spot lithium pricing is not representative what goes on in the market that's better represented by the realized prices of the producers and recently some auction prices that have seen the a huge differential from the8 or 900 per ton that in that the spot Market is quoted at versus the auctions coming in at 1,00 1300 per ton so there's quite a differential there definitely more representative of the market um people headl see headlines in North America and Europe about EV sales being down well the reality is that in the first quarter we saw globally EV sales up 21% clearly driven by the Chinese market which is up 31% but very very dramatic increases in ed purchases and consequently in lithium demand the meantime we've seen a massive cut back in uh in lithium supply uh canor genuity is estimating that around 236,000 tons of lce lithium carbonate equivalent have been pulled out of the market from from that period of 24 to 27 so a big pull back there on low prices and we'll see what happens as prices respond okay and yeah interesting time certainly terms of OEM it feels perception of whether OMS are now continue to be fully committed to that the that battery Revolution um Terry talk to us about the nickel market and know you're GNA your your project we'll have time to talk about the other the other medals but nickel specifically is it going to be okay it followed very similar run to lithium last year yeah for sure I mean again I think the the key uh takeaway and nickel is is a very uh differentiated market so you have Asian nickel European nickel and North American nickel and we can see different markets for each Asian Nel has obviously been impacted uh dramatically by the uh you know the mass of Indonesian Supply that's hit the market and obviously reduced prices and and has has kicked out a lot of high cost current operating nickel mines who you know couldn't couldn't make a living with the spot the way it was so uh that's had a serious short-term impact and created a lot of headlines uh for explorers like power nickel who are not in the current nickel Market who are basically going to be in the nickel Market in like 29 or or 30 uh you know of little consequence other than the sentiment uh and then you you can see uh you know with the deal that Samsung D did with uh uh you know Canada nickel that that basically their P perspective is that North American nickel is worth a lot more you know because you you have to get have U either North American nickel mine content or manufactured content in your EV if you want to get the tax credits through the IRA uh so so that that really protects that market somewhat I don't think the consumers or investors truly understand that uh and that's that's a good thing for investors so they can take advantage of it okay Brandon you you have to cover most of these Metals you you've got a royalty company which is bachy metal focused what effect has China got on both these guys uh companies and commodities lithium and nickels seem heavily heavily influenced by China how do we how do we get away from that yeah that's a good question uh you know China's definitely been dominating this space um you know in the case of Indonesia and nickel they've been investing billions of dollars there over the last 10 years um so this isn't something that just happened overnight um I think the Chinese government definitely has a lot more foresight and can act in a different way than uh you see politicians in Canada and the United States and and Europe for sure uh so I think we need to see some kind of change at that level you know some type of government support um you know for the sector uh on similar terms to what China does you know for for their companies um in the terms of lithium I mean China's definitely been the leader in processing of lithium uh for the last 10 years as well I don't remember exactly what the percentage is but it's a very high percentage of lithium that they process uh still e even as of today um but there is a lot of lithium in Canada and uh even in the US I think for us especially hard rock deposits in Ontario Quebec could be a fantastic source of lithium you know that could be an entire industry um when but when you look at the actual Capital going to that space uh it's very very minimal you know almost none of it's going to exploration despite you know explorers having a lot of success um there's a lot of span targets right at surface sitting there and tested in Ontario you know and I think there's enough lithium there to really um you know fill any Supply gaps that we have if you committed the funds to uh companies that need it there um you know we had the support of government you know like China does I'm sure back home as well so I mean there are things we can do and there are deposits you know especially for uh those two metals you know here in North America um that could be great sources of Supply uh but definitely we need a little bit more support uh and China's been very good about that doing that on there and I Eric tell me how you feel about China and how you play this lithium very technical uh medal you know most projects are very unique in in in a in a meaningful way um you're not getting the support that you need necessarily from government Upstream Downstream yeah but Upstream not so not so much it feels like is it possible to do business X China and it is possible um I would say that one of the biggest challenges and and I'm sure Terry can go into this has been the the naked shorting question about the markets in Canada but I think that there's another huge problem that we have in Canada and that's the availability of capital and the Brendan introduced there uh if you look at it if the numbers are to be believed we're looking at around 4% of funds in the Pension funds and other funds in Canada allocated to Canada let alone Mining and it used to be 70% of the money that was raised for exploration and development globally went through Toronto and Vancouver that's been cut way back look at what Australia's done a comparable figure for them is is around 20% of the funds in Australia are available for Australian companies and that's the huge differentiating factor between US and Canada where we used to be where we are today and what what our competitors in particular Australia are doing the comparable number for us for the for the for China is as Brandon um alluded to is we're seeing a lot of money that's being spent by the Chinese to make things happen in their own country and elsewhere so they're going to Africa to pick up some direct shipping or and that sort of thing their lepidolite deposits in in the country are not sustainable neither are the DSO deposits in Africa so we need to step in there we need to have the capital otherwise if we don't find the support within Canada um foreign actors are going to come over and pick up pick our bones if they're not already doing so everyone ask to say um I mean Terry you you talk about we well generally the genius talk about funding difficulties being cash strapped and so on but you've I guess raised awareness of another financial burden um it's hard enough competing with the Chinese competing globally with even with your peers but um naked shorting tell us about that yeah you know it it's it's a real problem and and uh we found some Sinister new sort of information that's so startling that I think it it's so uh so bad it's good because uh We've now basically determined that uh one of the weapons the shorters have been using uh unbalance to us we always thought the Bots were a problem the trading robots that that are the alos that that can you know sort of trade from one one uh you know Bank to another bank uh but we assume they had the same rules as us I they had to sort of uh sell their stock and they had to deliver uh the paper just like everyone else but uh no as it turns out they're able to uh trade under what's called a short Market exempt status so that means that these uh you know uh these trading Bots have substantially different rights than the ordinary investor even the ordinary mutual fund or pension fund so as a result uh you know we've seen that sector of the market go up to 10% of volume uh which in any particular Market is huge and then a small uh micro cap under billion dollar market it can be Mammoth you know we're talking the overall volume so so it's a significant problem we've identified it now we did not know as an industry this existed I would say until six or eight weeks ago when we exposed it and now that we have we're we're actively aggressively as a industry uh dealing with a head-on uh dealing with the governments creating a a big lobbying Force to change it so I'm of the view that well obviously it's dark there right now it's about to get less dark and and like I said to people in uh Vancouver at the resource conference there I said the best move in any market is when going from bad to less bad and I I think we're going to go from bad to less bad in these markets so the power nickels of the world the electric royalties of the world the Trees of the world are going to bounce up just because they've been so oversold and so devastated nowhere anywhere close to their AB normal value that it's going to bounce in my view and uh you want to be there for that bounce and if you can't stomach the individual stocks then look at the funds you because there's a lot of great funds out there CI McKenzie BT Global Palace Capital there's lots of great fund investors that have done well over the years and uh the people I I I I I say to the people that are listening you know the hardest thing to do as an investor is when you watch a deal that you've looked at you sort of said hey you know what I I I liked uh you know Eric and I liked pre and I I like that deal and then I just watched it double you know and that thing can go another 10 bagger Beyond that that's what we all believe and but if you miss the double you never have the courage to get back in at least I've never been able to do that because I it's just too painful psychologically so I'm saying that people don't miss that first bounce if you can't get in individual stocks and we get that the charts suck and we understand that whole thing get into the fund so at least you're getting part of the ride that'll help your psychology in terms of investing because if you miss these moves you're really going to be sorry e yep and we're we're trading at about the same range uh you know there a Roy company that's definitely a big discount uh to where we should be about 80% discount um I definitely things are going to turn around you know I think if you look at the growth picture for all these Metals um you know it's not just electric vehicles but it's energy storage and I think energy storage is really just starting to take off um and I think of that that's like batteries for cities you know so you think about how much metal those things are going to need you know you look at renewable energy renewable energy keeps increasing globally um all of the Renewable Energy Technologies require uh you know a big variety of clean energy metals like zinc uh you know that uh it didn't before so you know I think the demand side is actually very very strong you know over the next 10 year 20 year picture um and to be a mining company or invest in the mining space you kind of have to have a bit longer term you on where things are going to go but I think that's pretty definitive and then on the supply side for a lot of these Metals um it's always going to be harder to bring mines into production than people think uh so it's always going to be a bit of a delay there's going to be mines that come off you know when prices come down and that's always a good uh you know kind of solution for prices coming back up um but the supply side is very very weak across a lot of these Metals I'd say you know for the nine that we target copper um I don't know where the world's going to find more copper especially with big Minds like Cobra Panama um you know been taken offline you know tin is the exact same way uh for most of the metals that we target I think the supply side is equally uh as much a case for you know why the space is gonna definitely have a bouts here in the near future well Terry's G to give us some new copper with his new discovery I am that's news hot off the press folks um and and tell you'll be all over the media I'm sure on that one but but just sticking headines to to this conversation for now which which is around trying to get people comfortable the fact that the demand is there the need is there the supply isn't um you know what do we do but um we've just come off of you know not come off of we're still we're kind of still there but it seemed to be there's there's green Sho so there's rays of sunshine that we can look for lied at the end of the T whatever cliche want to throw out this thing but it's been three tough years for juniors Junior miners for lots and lots of different reasons not just because of covid and economic wo and printing of money and and supply chain issues but because the money dried up the money dried up um some CEOs have said oh the system's broken the Junior money um funding is broken we need to find a solution and they started looking at different and alternative ways of funding some some were it out most were not but they also looked at different business models to see if that changed anyone's mind and I think on the whole that didn't really work either so can you talk to me Eric about you know the the kind of the psychological games that play during the last three years for you guys and what what you are looking forward to now how do you play it going forward I'm looking for the leverage here not the wo of what poor poor me look what happened in the last three years really but give me a sense of you know those conversations those thought processes sure I mean one of the advantages we have as a as a Lithium company is that we have management that's been in the lithium game for decades our our president Stefan Auber and VP Finance Marcus brune were U instrumental in building up Rockwood lithium which was then sold to Alam Marl for 6.2 billion us a few years back so they've been through these Cycles they've seen what can happen and they've got the ability to Pivot and So speaking of pivots we've had to Pivot where our business model before was to get the debt side in place um get uh an off-taker in place that would also contribute Equity the reality is as share price collapses and you get down to that 0. 1.15 time nav you're not going to dilute your shareholders at 0. 1.15 time nav so you have to Pivot and you have to talk to those parties that instead are more interested in buying a 10 20 30% interest in a mine for something that's closer to 0.5 point6 times nav so that is the shift in the business model that's occurred in our minds over the past year yes it means delaying how long it takes to get a deal in place to put that M into production but it avoids that shareholder delution the other point is by delaying we've seen what happens to companies that have started to build that have commitments from the banks and off-takers at a certain price or at a certain discount rate the next thing you know GE I'm sorry but the goalposts have shifted we're going to have to make you go out to the equity markets and raise another x00 million dollars at a heinous valuation in order to finish building so personally I'm very glad we haven't been building through this downdraft in the lithium pricing I'd rather be building in an updraft which we hope is going to be or has already commenced yeah I mean you know I just came back from Dubai uh and South Korea and um you know in Dubai I was meeting with our um cvmr who was doing the feasibility study on nisk and you know their uh project financing approach completely uh different they're doing a lot of stuff with countries like they do a lot of stuff with the UAE and uh they're looking very heavily into tokenization you know this is not like a a conversation this is like massive Investments have already got into this I believe that they'll become uh I think the UAE and Saudi will become a major player in that space that'll be a bit of a game changer for us here then will be players in the Venture side of the market they're going to be players in the product side of the market the actual projects uh that's my perspective uh so and I and I think you know the U you know uh where we're going with it is you know as we advance through the uh the uh expiration process uh and and we deliver you know feasibility results Etc uh we'll be able to go back to uh you know clients uh in in Tria and elsewhere to make deals that you know basically allow us to with the government investment Finance out so that we can move forward uh we might you know we could easily see ourselves in a situation where we're building the refinery before we build the mine uh this type of thing so so we're we're we're looking at all uh Avenues in terms of how you can advance this in this Capital starve Market but there are pockets of capital still lots of capital out there you just have to finance it in a way that that makes sense for them and then for us obviously you know uh you know I mean it's better to be lucky than good honestly uh we've had this amazing discovery which will the world will soon learn about and that's going to give us a a totally different valuation approach that will uh you know that'll be a different game changer for us so that that that may give us some other tools as well so so I think that's the key is to keep uh keep Nimble and uh I know because I know cre very well obviously they're one of my big shareholders and were partners and and they've always been very frugal and we're very frugal at Power nickel and I think the message has been if you're looking at I'm sure Brendon is the same way as I've spent time with Brendon I know this those are the guys that you want to bet with the guys who respect the capital that they fought very hard to get and are spending it well and moving and making progress even in a very difficult environment because when the markets turn those guys are going to blast into the gates and that's who you want to be with and Brad for you in terms of optionality you've got to take a long term for you on these these days you know the royalty game is is um built like that but at the same time it's been a tough tough three years for even the royalty companies in terms of that you know if I if I if I talk to Eric talk to Terry you know they probably have the potential of bring in a strategic investor right at asset level for it as one of their options for you guys what what are your what were your options on the table did you look at them what did you have to to rethink how you viewed the market yeah well uh first just let me say I think um for me at the very beginning of starting this company the first 10 years of my career in the mining space basically taught me that mining is a very risky game uh and so I don't know if I'd play it any other way than than being a roed company you know we're now going to be Diversified across 71 assets uh nine different clean energy Metals um you know we're not on the hook for development costs Capital costs any of that stuff so I think it's a it's a just a much different way to invest in the space we've been pretty lucky I mean uh I'm happy with what we've been able to do over the last you know three four years since we went public it's been super tough uh in the markets we've only raised about 10 million Equity to date um and then we've been leading very heavily on our largest shareholder who you know thankfully has been a godsend to us uh he's basically put 10 million side for us which we've been drwing down over the last kind of year and a half uh to continue to add deals and and continue to grow uh despite this tough Market um for us also it's kind of uh nice we're nine different clean energy metals they all don't go up or down at the same time and so we've just been able to kind of transition into metals that are out of favor this year but we know are coming back you know the year after the year after that so um you know we've been able to kind of keep growing and just keep adding assets we're extremely Frugal I like Terry uh and Eric sound like they are as well um and so you know just trying to use that money to grow wisely and we're pretty pleased with what we've been able to do the last couple years um I know despite it being very tough and and I really admire Eric and Terry I would I would not want to be in charge of you know exploration of developer this last couple years it's been very tough for funding it's it's very tough it it has been very very tough in in indeed and and I'm just wondering this probably the made the fun B of the conversation maybe you can impart some of your wisdom knowledge of certainly the past three years and possibly longer um because when I look back at some of the the the themes some of the things we were told to focus on and uh and like think about it now I'm I'm not so sure perhaps that you know with hindsight I would have done those things so things like for me a big major issue being made out of ESG as as for me looking back it's like perhaps that was a little bit over the top you know good companies do the things that ESG is made up of but to make companies you know spend the time money and effort on and admin on just you know signing those things up it just felt quite onerous for some companies and some C spread that back to me some us Focus company spread that back to me um you know funding Etc so it's a long I've got a long list but Eric for you if you sort of look back maybe not just the last three years but if you look back over over recent times what lessons have you learned what would you do differently what would I do differently well I know what I would do despite what's happened and and you mentioned ESG I I think that you're right that there was some overdoing of that from the perspective of the creation of massive funds that were focused entirely on ESG the reality is a company that has diversity a company that looks after the environment and that looks after the local community is going to do better than the other companies so ESG is inherent to being successful and and we've been very um proud of the the diversity that we've created on the board and in our employee stack the relationship we have with the the cre we we formed an IBA back in 2019 the picau agreement that's been very successful and the creek consequently are excited to see us move forward um in the terms of governance you have to have good governance so if you don't you're in trouble so I wouldn't change that any um I guess given the stock has gone from you know almost $3 down to 6070 suggests that we should have taken more money back when but of course it's very difficult to predict that that lithium pricing would come off 80% um and so yeah sure would have taken more money at that close to $3 than than today what else would we do different exploration I mean Terry and and brandan have compliment us for being frugal yes I we raised uh you know $30 million in November 21 and we haven't raised a penny since um we've been able to move forward with the project on that basis would I love to take some charity flow through right now not at these prices but would I love to take some more charity flow through and accelerate drilling absolutely but there are times when exploration it doesn't matter what result is the market does nothing it views it as a liquidity event and sells off anyway oh do I still own some of that stuff so you know I think we're coming back into a market where exploration is important it's a it's it's that is something that we look forward to is reaccelerating exploration and demonstrating the potential of over a thousand square kilometers in that highly perspective area yeah you know honestly um there's not a lot of regrets you know we we we've uh we've tried to execute you know with the capital we had we' pretty um diligent about using as are uh mentioned the uh exciting two for one programs you get in Quebec you know we've been able to I think we've been one of the leaders in that we've raised you know money at two and three times our share price you know and and means a lot less delution for our our our shareholders than we were able to put the money in the ground and obviously have made serious Investments on that side of thing so um you know obviously would have liked to have have more as as Eric said would War chest would be I wish it was you know a bit more full but um but honestly you know we we we got to uh the point now where we've got some significant uh you know uh uh you know assays that are going to be coming out that will be in my view game changers and should should uh should radically repic the thing and and then obviously it'll bring in a pile of warrants and options and obviously set us up for I mean we're going to get there's going to be a lot of Industry interest in what we're doing on that copper uh uh PGM gold plate uh you know there's obviously we obviously got an industry with the nickel thing so I think we we recognize as a small guy you got to work with industry you know soon you know and and get them in you don't want them dictating uh uh but you probably want them participating and and uh because it helps you in many ways it gives you obviously access to expertise that you know already have and uh bench strength that you can't possibly replace and then of course it gives you credibility in the marketplace when you're talking to other investors so I think we've uh we've tried to keep that in mind as we step forward and we'll keep that certainly in our Focus okay brenon I'm going to just change the question slightly for you okay be I ass seemly going to say the same thing I was just gonna say go in public would be my only we had to you know because I look at the valuations on go royalty sales private space and yeah those they're going at you know multiples multiples of us right I didn't know that I didn't know that was an option Brit yeah the the the the point of the question is to say well what can other people learn in terms of their investing strategies and so forth rather than regret personal regrets or or personal you know considerations just BR when ask get to slightly different if you guys want to pop in after Brennan's um answer that that'd be fine which is um and I'm going to assume that you know similar maybe don't go public or raise money at a more opportune moment time the market perfectly like we all want to do but if you if you look at some of the messaging some of the narratives that have been out there I I named one the ESG narrative was slightly irritating is for some of the reasons Eric said you know you know these massive funds setting rebranding themselves as an ex marketing exercise but not actually really understanding or or or caring quite frankly in a in a very meaningful way um is what what what were those thing things that the market was telling oh you must do this you must behave like that you must think like this um that you just thought I'm not quite sure why but everyone's going along with it so maybe there's something in it but now with hindsight site you're like geez what what on Earth was that about yeah well I'm almost always contrarian so I think I'm almost always against you know what people think you should do right now because we're kind of looking at you know we're going to try get a good deal because things are the way they are right now and then you know use our forecast of where we see things coming uh knowing that that value is going to come back um you know I don't really have any regrets and stuff in terms of where we've played and what we've done investing wise uh we've been really careful personally to stay away from uh competing with the other big funds so you know all the private Equity Funds really can't touch anything that's uh below PFS pre-feasibility study so we've gotten a lot of really good deals at the paa stage where you can basically tell you know 90% of the Project's going to look like at a PFS and might have some infil drilling needed uh but we've been very you know good about staying away from the competition and then you know we are the first group that ever did a graphi royalty financing you know we did the second third 10 royalty financings we were one of the first groups out doing lithium roties so you know we got in uh early and we had very little competition on all these Metals so we've been pretty happy that we put together this portfolio like I said we're going to be up to 71 Assets Now um you know since going public just over four years ago so we're incredibly excited about that um but we've been very careful about where we you know compete with uh other Capital um you know and what kind of projects we go after uh we've been again our business plan is uh built around looking for those deposits in North America Europe and Australia so we're sticking to Safe jurisdictions already so we didn't get hit by any of the stuff that's going on in Latin America right now um you know and so I think a lot of the stuff that we built into our business plan has really helped uh helped keep us out of some of these issues um you know in ESG for example I mean we do a lot of projects in Canada United States where they already have really good regulations so a lot of that's already kind of built into it um and then just trying to keep things you know if there's renewable energy you know renewable power source all that stuff is good um but we never really built up our uh Team so much that it became a big Capital burden on us um in any way okay I'm sorry for the noise know that's not helpful for investors trying to navigate the space because we just kind of we don't really have any regrets though personally on on you know what we did I I guess I guess for me one of the things that annoyed me was um like economists trying to forecast the future uh because you know pick an economist you got a different point of view you know no one no one no one understands that but trying to put themselves up as person saying that they can forgetting that they did if you at the metal PR forast those are the best right you go look at the historic metal price forecast by the Banks and and see how wrong they were it's a joke AB we did it recently with nickel with Terry might appreciate you know you kind of you take the kind of top top four producers of this content which then reproduced by the Banks themselves they don't even have original data and you see just how wrong the banks are as a result because they don't have anyone on the ground no one goes to China C we Indonesia we Philippines check the nickel um numbers maybe except mcari so yeah I those those are the kind of things that annoy me so what I say what I say to investors is you know have multiple sources and then sort of take you know form a a consensus view um might help you a little bit or even better just be a fundamentalist and say you know has this team got a decent management team is the asset does it look like it could be uh something that could get into production at some point in the future and then you can take a contrarian view to use your point brenon but uh I'm sure we'll we'll argue violently for or against whatever we we we each think or use as investing strategy but L gentlemen I think we're sort of that time of of the day where I'm going to ask you each to give us a couple of minutes on your companies oh I just wanted ask just direct question why on Earth should anyone invest in your company Eric go for it okay as we discussed lithium is is a poised I think we're seeing the bottom of of pricing right now and uh in the past we've seen as the the lithium Market turns we see a turn in the equity sentiments as I mentioned we're trading at around Point 1.15 times nav U on one of the most advanced projects that this summer will be will be shovel ready um so that's a great entry point we've got one of the highest Purity low iron oxide and low mic projects globally which makes it amable for use in the glass and Ceramics industry and why that is important is because it's a premium product and you attract about 100% premium for that product which has a huge impact on your margin we've got a strong relationship with our cre Partners formalized Rel relationship with the IBA as un mentioned signed in 2019 um it's one of the most advanced projects with the key environmental per in place and we've got strong lithium industry experience in the Management Group again as I mentioned before and that's a key differentiator from a lot of the companies out there and finally we've had a an intentional strategy to avoid off-take agreements we don't think that they're that the that these oft Agreements are worth that much that worth the the paper that they're written on the important thing is to is to bring some sort of partnership into the into the mix at a project level that assists on the technical side and that's also a potential source of equity so we're at a great point right now and that's that's why I think the uh that this is a great entry point for critical elements yeah I I think for power nickel it's it's pretty simple um we were an amazingly undervalued uh high-grade nickel uh story before we made this uh impressive the coer gold uh PGM Discovery now this discovery as it as it will unfold as the asset come out is um is a category killer it's it's really going to be impressive this is and I understand that that sounds hyperbolic to say that but uh the assays will sort of prove this out and it's it's it's really oneof a kind so you know the best the most exciting time uh in a in a um investment in a junior miter is when it's going through a an explosive uh growth curve uh on the expiration side when they're hitting it with the drill bit boom we're hitting it with the drill bit you know and and by the way your downside is zero because or relatively speaking in my mind because we've already got the Benchmark of a killer nickel deal that we've got industry participating on that's doing a feasibility study so it's like you're shooting fish in the barrel here folks doesn't get any better yeah so I we're definitely undervalued where we're at today I mean we have some royalties in our portfolio like battery Hill and we expect that's going to pay out over 7even million a year for 50 years you know and here our valuation is less than 30 million Canadians so um I definitely think we're an undervalued company right now uh we've got a lot of good news that should be coming out this year um you know there's four different royalties in our folio uh which could come back into production this year uh we've got our Middle Tennessee zinc M royalty uh they're basically doing some drilling upgrading their geranium Gallum Recovery Unit uh and then we'd expect that to come back online as zinc prices recover uh we've got our Puda Tin Mine uh in Spain which it's really Europe's only producing Tin Mine uh they've been shut down since November uh over some pering stuff but we're hoping to get some good news on that in the near future uh and then pedmont just came out uh just this last week said their JV with with s mining uh which we have a royalty on the o project uh they are planning to fully ramp that up in 2024 and so that would mean they'd start blending or from the O project uh and then grath maada uh those guys are looking for a strategic investor basically bring that back into production uh did operate for about 18 months continuously shut down uh before covid uh and then with this latest deal we're g to have some option payments coming in from our portfolio as well uh so we're we're really hoping that we're going to be cash flow positive here um you know ahead of the end of the year and uh we've got access to another you know $4 million or so uh between cash and undrawn on our facility to keep going doing some more deals so you know GNA is very low um we're Diversified across nine clean energy Metals uh and 71 different assets so I think at our current valuation um you know definitely a safe play to get exposure to the entire space Chad thank youan great to hear thank you cheers

Channel: Crux Investor

Views: 10,171

Keywords: mining, gold, nickel, cobalt, uranium, vanadium, lithium, precious metals, crux investor, cruxinvestor, silver, TSX, ASX, AIM, LSE, investing in uranium, investing in mining, investing in stocks, investing in stocks for beginners, investing in gold, invest in stocks, invest in stocks for beginners, invest in gold, invest in mining, analyst's notes, analysts notes, analyst notes, battery metals, electric vehicles, net zero, carbon neutral, carbon credits, nuclear, best mining stocks, TSXV

Id: gVWI35tsAZA

Length: 38min 28sec (2308 seconds)

Published: Thu Apr 18 2024