Confronting CEOs in Real Life
Also; Chile's Next Gold Mine, Greenland's New Lithium Discovery, and M&A Talks
This week on Resource Talks
Confronting CEOs: What Are They Doing With YOUR Money?
Chasing M&A: Does it make sense?
Chile’s Next Gold Mine Just Got Financed (TSX-V: RIO)
Greenland’s New Lithium Discovery (TSX-V: BRW)
Results from last week’s QOTW
Question of The Week (QOTW)
Confronting CEOs: What Are They Doing With YOUR Money?
There wasn’t all that much content published on Resource Talks this week as I went to Zurich, Switzerland for the Precious Metals Summit.
At this conference, my mission was clear: get real answers from companies I already know and have interviewed in depth. I asked the tough questions: What are they doing with your money as shareholders? Why are they here? What’s the strategy behind spending their marketing dollars in Zurich? Who are they pitching to, and what kind of investors are they looking to attract?
I also took the opportunity to address broader industry concerns. Why are we seeing such erratic correlations between metal prices and junior stock performance? When prices rise, juniors stay flat; when prices fall, they’re suddenly correlated. Is there something fundamentally wrong with our industry? These are the kinds of questions that need answers.
What follows is a series of interviews with the few companies brave enough to get in front of the camera. Watch their insights, dive into their stories, and let me know what I should ask next time—if I’m allowed back in. Until then, let’s hear from the CEOs who didn’t dodge the hard questions.
Companies interviewed herein:
Tectonic Metals (TSX-V: TECT) with Tony Reda
Kootenay Silver (TSX-V: KTN) with Jim McDonald
Altamira Gold (TSX-V: ALTA) with Michael Bennett
AbraSilver (TSX-V: ABRA) with John Miniotis
Regulus Resources (TSX-V: REG) with John Black
Elemental Altus Royalties (TSX-V: ELE) with Dave Baker
Magna Mining (TSX-V: NICU) with Jason Jessup
Relevant Gold (TSX-V: RGC) with Rob Bergmann
Fuerte Metals (TSX-V: FMT) with Tim Warman
Ridgeline Minerals (TSX-V: RDG) with Chad Peters
Chasing M&A: Does it make sense?
1. Focus on Fundamentals: M&A events should be viewed as liquidity opportunities, not the primary reason to hold a mining stock—project quality and solid fundamentals matter most.
2. Quality Outshines Premiums: High-caliber assets with strong development potential tend to attract the highest premiums, particularly in top jurisdictions like Canada.
3. Beware Necessity-Driven M&A: Takeovers born out of necessity, where struggling companies merge, often provide limited value and can signal deeper issues.
4. Use Data Tools for Clarity: Tools like Resource 100’s Chart Maker can reveal a project’s true progress, overlaying news with price movement to provide context beyond promotional hype.
5. Timing and Selectivity Are Key: Investing in potential takeover targets requires discernment, with names like Snowline Resources or Founders Metals offering better odds due to their project quality and pace of development.
Chile’s Next Gold Mine Just Got Financed (TSX-V: RIO)
This project isn’t for sale.
Alex Black, Chairman Rio2 Limited (TSX-V: RIO)
Key Takeaways
Project: Rio2’s Phoenix Gold Project in Chile is a rare large-scale oxide gold deposit poised to become a significant new mine in the Atacama region.
Financing: The company secured an oversubscribed $180 million USD financing, giving it a substantial financial cushion to avoid capital shortfalls.
Partnerships: Partnering with Wheaton Precious Metals introduced an innovative gold pre-pay structure, simplifying repayment and speeding up project timelines.
Risks: The project’s simplicity as a run-of-mine oxide heap leach, coupled with experienced management, minimizes cost overruns and technical risks.
M&A: Rio2 is focused on developing Phoenix independently, aiming to unlock value over the next 3-5 years before any potential M&A consideration.
Greenland’s New Lithium Discovery (TSX-V: BRW)
We’re not here to waste time or money—we’re here to make discoveries, and more importantly, to find mines.
Killian Charles, CEO Brunswick Exploration (TSX-V: BRW)
Key Takeaways
Disciplined Exploration: Brunswick prioritizes exploration over administration, focusing on discovering mines with a rigorous approach to asset viability and early metallurgical testing.
Promising Results at Mirage: The Mirage project in Quebec is progressing well, with potential to exceed the 50-million-ton threshold as exploration continues.
Greenland Expansion: Brunswick’s entry into Greenland led to the island’s first lithium discovery, showcasing the team’s ability to identify untapped potential in overlooked regions.
Efficient Cost Management: By leveraging an in-house team of geologists, Brunswick keeps costs low while scaling exploration across multiple jurisdictions.
Pragmatic Financing: Brunswick remains cautious with dilution, raising funds only when necessary and prioritizing long-term, strategic investors.
Results From Last Week’s QOTW
To my surprise, 67% of respondents said they have bought a stock “just because a billionaire was in it”.
Not a good idea, in my opinion. Luc ten Have and I discussed that in-depth already, though.
New Question of The Week
Would you ever go to a mining investment conference?
Upcoming Interviews
If you have any questions for these companies, please send me an email or fill in the form at the bottom of the home page on https://resourcetalks.com.
Dryden Gold
RUA Gold
Li-Ft Power
Prismo Metals
Awalé Resources
American Eagle
American Pacific
Very Important Warning
These are very brief summaries of what are typically very lengthy interviews. Don’t rely on these summaries. Watch/read the full interviews on www.ResourceTalks.com.
Please note that some of the guests have paid for the creation of this content. The Resource Talks interview rules are simple;
The companies, albeit paying or non-paying, get no questions upfront, no questions off the table, and no editing rights.
The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.
Thank you for reading and have a wonderful week.
Respectfully,
Antonio A.