Company Interviews

Interview with Oliver Dachsel, SVP Capital Markets of Aris Mining Corp.Recording date: 3rd December 2024Aris Mining, a Canadian gold mining company, is positioned for significant expansion with plans to double its production within two years through a fully funded and permitted growth strategy. The company, formed in September 2022 through the merger of Gran Colombia Gold and Aris Gold, operates under the leadership of CEO Neil Woodyer, known for his successful track record of growing Endeavour Mining into a multi-billion dollar producer.The company's growth strategy centers on two key Colombian assets. The Segovia mine, recognized as the world's highest-grade underground gold mine with a reserve grade of 10.8 g/t Au, is undergoing a major expansion. The project will increase throughput from 2,000 to 3,000 tonnes per day by Q1 2025, boosting annual production to 300,000 ounces by 2026, up from 190,000 ounces in the last quarter. This expansion, costing just $15 million, is already more than 50% complete.Simultaneously, Aris is developing a new lower mine at its Marmato property, which will transform the operation into a modern, large-scale mine producing 162,000 ounces annually over a 20-year life span at an all-in sustaining cost of $1,200 per ounce. The company's long-term pipeline includes the high-grade Soto Norte project, which hosts 8.5 million ounces of gold at 5.5 g/t, potentially pushing total production beyond 500,000 ounces per year.Financially, Aris Mining maintains a solid position with $266 million in cash and $233 million in net debt following a recent $450 million senior notes issuance at 8% interest. The company's leverage ratio of 1.6x last twelve months EBITDA ($147 million) is expected to improve significantly as expansion projects come online, with analyst consensus forecasting EBITDA to exceed $300 million in 2025 and $500 million by 2026.Despite its strong growth prospects, Aris trades at a significant discount to peers, with a market capitalization of US$630 million representing just 4x projected 2025 EBITDA, compared to mid-tier peer multiples of 8-12x. This valuation gap could close as the company executes its growth strategy and benefits from favorable gold market conditions, supported by persistent inflation, geopolitical risks, and central bank buying.The company's low-cost operations, with all-in sustaining costs in the lowest industry quartile at approximately $1,200 per ounce, position it to benefit significantly from current gold prices around $2,500 per ounce, potentially driving substantial margin expansion and free cash flow generation as its growth projects come online.View Aris Mining's company profile: https://www.cruxinvestor.com/companies/aris-mining-corpSign up for Crux Investor: https://cruxinvestor.com

Interview with Chris Doornbos, President & CEO of E3 Lithium Ltd.Our previous interview: https://www.cruxinvestor.com/posts/e3-lithium-tsxvetl-pioneering-lithium-development-in-the-heart-of-canadas-energy-industry-5064Recording date: 2nd December 2024E3 Lithium represents a compelling opportunity in the North American critical minerals sector, developing what could become one of the region's largest lithium production facilities in Alberta, Canada. The company's Direct Lithium Extraction (DLE) project aims to begin production by 2027-2028, leveraging existing oil and gas infrastructure and strong government support.The company's resource base of 16 million tonnes of lithium carbonate equivalent (LCE) - five times larger than all other Canadian lithium resources combined - provides significant scale potential. E3 has adopted a phased development approach, initially targeting 10,000-12,000 tonnes annual production instead of the originally planned 32,000 tonnes, demonstrating prudent capital management and risk mitigation.Financial positioning is robust, with $23 million in cash and $37 million in federal and provincial grants secured. Importantly, the project qualifies for Canada's 30% Investment Tax Credit on capital expenditure, substantially reducing the financing burden. Operating costs are projected at $6,200 per tonne against current market prices of $10,000-12,000/tonne, suggesting healthy margins even in the current softer price environment.The company's DLE technology, under development since 2017, benefits from Alberta's established regulatory framework for resource extraction. Rather than facing traditional mining permits, the project falls under oil and gas regulations, potentially streamlining the development timeline.Strategic partnership potential is significant, with E3 actively engaging automotive, battery, oil and gas, and mining companies for project-level investment. Recent sector moves by major players like Rio Tinto's acquisition of Arcadium and General Motos (GM)'s investment in Thacker Pass validate growing institutional confidence in the lithium sector.Key investment considerations include:Scale Advantage: Largest measured and indicated lithium resource in Canada, supporting multiple potential projects.Strong Financial Position: Funding secured plus 30% Investment Tax Credit eligibility.Strategic Location: Established energy province with existing infrastructure.Technical De-risking: DLE technology validated since 2017 with demonstration plant pending.Market Position: Early mover potential in North American supply with multiple strategic partnership opportunities.The macro environment strongly supports domestic lithium development, driven by supply chain security concerns and growing Western emphasis on reducing dependency on Chinese processing capacity (currently 70-80% of battery-grade lithium). Government policy and funding support reflect lithium's critical mineral status.E3's approach of repurposing existing oil and gas infrastructure for critical mineral production could provide a template for future North American resource development. While market conditions remain challenging, the company's robust fundamentals and strategic positioning suggest potential for significant value creation as North American lithium supply chains develop.Management's focus on securing strategic partnerships at the project level rather than corporate equity investment demonstrates a commitment to minimizing dilution while maximizing long-term value potential. The phased development approach and strong government support provide multiple paths to value realization.View E3 Lithium's company profile: https://www.cruxinvestor.com/companies/e3-lithiumSign up for Crux Investor: https://cruxinvestor.com

Interview with Brett Heath, Director & CEO of Metalla Royalty & Streaming Ltd.Our previous interview: https://www.cruxinvestor.com/posts/metalla-royalty-tsxvmta-a-growing-precious-metals-and-copper-royalty-company-to-watch-for-5043Recording date: 3rd December 2024Metalla Royalty is a mining royalty company focused on gold, silver, and copper assets across the Americas and Australia. The company has built a portfolio of 101 assets through 32 transactions since 2016 and is entering a "harvesting phase" as many of its properties begin production. They expect to double their gold equivalent ounces production by 2025, with additional growth projected for 2026-2027.The company is now entering what CEO Brett Heath describes as a "harvesting phase" after years of aggressive portfolio building. Production forecasts highlight this transition, with Metalla expecting to double its output in 2025 compared to 2024 levels. By 2027, the company aims to achieve 8,000-10,000 gold equivalent ounces of annual production, with potential to double again within the following 2-3 years as key assets like Endeavor and Cote begin operations.A distinguishing feature of Metalla's strategy is its emphasis on long-term sustainability. The company's top 10 assets boast a combined reserve life exceeding 20 years, the highest among junior and mid-tier royalty companies. This extensive reserve life ensures consistent returns across various commodity price cycles and market conditions.Despite its impressive portfolio growth, Metalla continues to pursue expansion opportunities. The company has identified a sweet spot in the market, targeting transactions between $50-200 million – a range increasingly overlooked by larger industry players who focus on deals above $300 million. This positioning could enable Metalla to become a leading mid-tier royalty consolidator.The royalty and streaming business model offers investors a unique advantage in the precious metals sector. Unlike traditional mining companies, royalty firms provide upfront capital in exchange for rights to future metal production at preset prices, creating leveraged exposure to metal prices while avoiding operational risks and capital-intensive mining operations.With a current market capitalization of US$273 million, Metalla appears undervalued given its growth trajectory and high-quality asset base. The company's growth strategy aligns with industry trends, where mid-tier royalty companies are scaling up to attract institutional capital, with Heath noting that a $5 billion valuation is now necessary to draw significant investment from outside the sector.Sign up for Crux Investor: https://cruxinvestor.com

Interview with Jason Kosec, CEO of Integra ResourcesOur previous interview: https://www.cruxinvestor.com/posts/integra-resources-tsxvitn-starting-to-demonstrate-scale-and-margin-3882Recording date: 3rd of December, 2024Integra Resources has transformed its business model through the acquisition of the Florida Canyon gold mine in Nevada, positioning itself for significant growth in the gold mining sector. The acquisition makes Integra an immediate gold producer while providing a platform for expansion to over 250,000 ounces of annual production through a sequence of projects.Florida Canyon currently produces approximately 70,000 ounces of gold annually from oxide ores with a 7-year reserve life. Integra plans to invest $3.5 million in 2025 to optimize the operation through improved mining rates, recoveries, and costs. The company expects to produce 70-75,000 ounces in 2025 and will release an updated technical report and three-year guidance in early 2026.The company's growth strategy centers on developing the DeLamar project in Idaho as its next major asset. A feasibility study is in progress, incorporating 42 million tons of stockpiled oxide ore that is expected to boost annual production to 135-140,000 ounces and extend the mine life. Integra aims to begin the permitting process by the end of 2025, with a targeted two-year timeline. The company's management emphasizes that DeLamar's permitting should be straightforward given its brownfield status and absence of major environmental concerns.Further growth potential exists through the Nevada North project, which features a high resource conversion rate and could benefit from expedited permitting in Nevada. The company plans to advance long-lead items for this project as DeLamar development spending decreases.A key advantage of the Florida Canyon acquisition is that it enables Integra to self-fund its growth initiatives through operational cash flow, eliminating the need for frequent equity raises that typically burden development-stage mining companies. This financial independence is expected to help Integra achieve a valuation more in line with producing peers, potentially moving from its current 0.22x P/NAV multiple toward the 0.4-0.6x range typical of producers.The company's growth strategy aligns well with the current strong gold price environment, with gold trading around $2,500/oz in 2024. CEO Jason Kosec believes the company is positioned to unlock over a billion dollars in NAV at $2,000 gold as it executes its project sequence to reach its production target of 250,000 ounces per year.Learn more: https://www.cruxinvestor.com/companies/integra-resourcesSign up for Crux Investor: https://cruxinvestor.com