Interview with Matthew Hayes, Executive Director of James Bay Minerals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/james-bay-minerals-asx-jby-two-pronged-approach-near-surface-gold-high-grade-skarn-upside-6312

Recording date: 28th April 2025

James Bay Minerals is advancing its strategic 1.4 million ounce gold resource in Nevada toward potential near-term production. The project features a high-grade component of 980,000 ounces grading 6.67 g/t gold and a surface oxide component of approximately 400,000 ounces at nearly 4 g/t.

Located adjacent to Nevada Gold Mines' Phoenix operation, described as "the largest gold mine in the world," JBY's asset shares identical geology with a proven neighbor that has produced 9 million ounces over 40 years. The project benefits from existing infrastructure including power, paved roads, and secured water rights, with just a 15-minute drive to the established mining town of Battle Mountain.

Executive Director Matthew Hayes, who holds approximately 15% of the company, highlighted their production-focused strategy: "We've got advanced heap leach permitting in place. And within 8-12 months we could be in production." This heap leach approach could enable operations to begin at a relatively modest capital cost compared to conventional mining.

JBY acquired the asset in a distressed situation for less than $4 per ounce (now effectively under $2 per ounce at current share prices) and maintains a healthy treasury with $7.3 million cash. The company is currently conducting a 4,000-meter drill program targeting significant resource expansion, including previously undrilled high-grade outcrops with samples up to 42 g/t gold.

Metallurgical studies demonstrate favorable recoveries of 79% for oxide material, exceeding the neighboring operation's 68% recovery despite processing much lower grades (0.32 g/t).

Management's substantial ownership (approximately 33% collectively) aligns interests with shareholders and supports their anti-dilutive approach, with Hayes noting: "We'll most likely be looking to do it majority through debt financing."

In the current strong gold price environment, JBY represents a compelling opportunity for investors seeking exposure to a potential near-term gold producer in a premier mining jurisdiction.

View James Bay Minerals' company profile: https://www.cruxinvestor.com/companies/james-bay-minerals

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Interview with Paul Barrett, CEO of Rome Resources

Our previous interview: https://www.cruxinvestor.com/posts/rome-resources-lsermr-tin-resource-update-in-the-coming-months-6874

Recording date: 29th April 2025

Rome Resources (LSE) has announced the resumption of exploration drilling in the Democratic Republic of Congo (DRC) following improved security conditions in the region. CEO Paul Barrett confirmed that helicopter support has mobilized back to the country, with drilling operations expected to restart by the end of this week.

The improved situation stems from M23 rebels retreating from the company's operational area back to the Kivu region, along with ongoing peace talks between Rwanda and DRC. While currently operating from Kisangani, the company plans to eventually return to Goma, which would streamline logistics with shorter helicopter flight times.

Rome Resources is focusing exclusively on the Mont Agoma deposit, having already collected sufficient data from the Kalayi deposit. The strategic drilling program targets a specific data gap in the deeper part of Mont Agoma, based on their geological model suggesting increased tin grades at depth. The company also plans to drill exploratory holes on the southern fringe to determine the deposit's lateral extent.

Mont Agoma represents a more complex opportunity than the pure tin Kalayi deposit, featuring additional copper and zinc mineralization. This multi-metal potential could provide significant value streams for the project, with the company exploring combined processing options for all three metals.

A key near-term catalyst is the planned resource estimate expected by the end of May 2025, pending assay results from holes 24 and 26. The estimate will require independent verification to comply with AIM listing rules.

Financially, Rome Resources maintains a strong position with $2.7 million in cash and a tightly controlled drilling budget of $1.6 million. The company operates with a lean structure, directing 90% of expenditures toward drilling activities.

The company is also exploring collaboration opportunities with neighboring miner Alphamin for shared helicopter and fixed-wing facilities, potentially improving operational efficiency in the remote region.

View Rome Resources' company profile: https://www.cruxinvestor.com/companies/rome-resources

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Interview with Jeff Quartermaine, Managing Direcotr & CEO of Perseus Mining Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/perseus-mining-asxpru-gold-operations-deliver-22-profit-growth-6748

Recording date: 29th April 2025

Perseus Mining Limited (ASX/TSX: PRU) has emerged as one of Africa's most compelling gold investment opportunities, demonstrating exceptional financial strength and a clear growth trajectory. With its March 2025 quarter results revealing cash and bullion reserves of US$801 million, zero debt, and an additional US$300 million in undrawn credit facilities, Perseus stands on remarkably solid financial footing among mid-tier gold producers.

The company's operational excellence continues to impress, with quarterly production of 121,605 ounces at a competitive all-in site cost (AISC) of US$1,209 per ounce. This efficiency, combined with strong gold prices averaging US$2,462 per ounce during the quarter, has generated substantial cash margins of US$1,253 per ounce and a notional operating cashflow of US$152 million. Such robust margins highlight Perseus's ability to maximize value from its existing asset base.

Most significantly, Perseus has now taken the Final Investment Decision to develop the Nyanzaga Gold Project in Tanzania. This strategic expansion represents a US$523 million investment to develop a large-scale, wholly open-pit operation expected to produce first gold in Q1 2027. Over its initial 11-year mine life, Nyanzaga is projected to produce 2.01 million ounces of gold, with production averaging over 200,000 ounces annually from FY28 to FY35 and peaking at 246,000 ounces. The project's strong economics are reflected in its pre-tax NPV10% of US$404 million and IRR of 26%, figures that improve dramatically at higher gold prices.

Complementing the Nyanzaga development is Perseus's commitment to the CMA Underground project at its flagship Yaouré operation in Côte d'Ivoire. This development will make history as Côte d'Ivoire's first mechanized underground mine while extending Yaouré's operational life until at least 2035. With Byrnecut appointed as the specialized underground mining contractor and mobilization already underway, the project is advancing rapidly toward portal development in July 2025.

Despite these significant capital commitments, Perseus continues to prioritize shareholder returns through its ongoing A$100 million share buyback program, which was approximately 33% complete at quarter-end. This balanced approach to capital allocation demonstrates management's commitment to creating both immediate and long-term value for investors.

Perseus Mining has clearly positioned itself for sustainable growth beyond this decade. CEO Jeff Quartermaine's strategy of building "a sustainable, geopolitically diversified but African-focused gold business involving 3-4 operating mines that produce between 500-600koz of gold per annum" is now coming to fruition. With its exceptional financial position, strong operational performance, and two major growth projects underway, Perseus offers investors exposure to a well-managed gold producer with significant upside potential in a favorable gold price environment.

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View Perseus Mining's company profile: https://www.cruxinvestor.com/companies/perseus-mining

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Compass, episode 13

Our previous interview: https://www.cruxinvestor.com/posts/why-smart-money-is-chasing-mining-royalty-companies-7032

Recording date: 28th April 2025

The investment landscape has settled into a period of relative calm following an eventful first quarter marked by new tariff policies from the Trump administration. Markets currently appear to be in a holding pattern, waiting for the next significant catalyst, according to recent discussions between Samuel Pelaez and Derek Macpherson of Olive Resource Capital.

This temporary market lull provides an opportunity for investors to reassess positioning, particularly in the gold sector, which is demonstrating remarkable strength. Q1 reporting reveals impressive performance from leading gold producers, with Agnico Eagle generating $6.7 million in daily free cash flow during Q1 at an average gold price of $2,900. With gold now trading around $3,400, daily free cash flow could potentially exceed $10 million, showcasing the significant operating leverage gold producers have to metal prices.

The fundamentals driving gold stocks are increasingly attractive to professional investors. Agnico Eagle posted year-over-year revenue growth of 36% in Q1, outpacing even successful tech companies that typically grow at around 20% annually. Despite this strong performance, valuations remain compelling, with Agnico Eagle estimated to be trading at a free cash flow multiple of 10-15 times.

Generalist investors are beginning to take notice, with Newmont ranking as the third-best performing stock in the S&P 500 year-to-date, up approximately 45%. This investment cycle typically begins with generalists purchasing large-cap gold producers, followed by capital flowing to mid-caps, developers, and eventually explorers – a pattern that appears to be in its early to middle stages currently.

Several macroeconomic factors continue to support gold, including upcoming debt ceiling negotiations and budget discussions in Congress, which could drive market volatility in the coming months. Additionally, the U.S. dollar, described as "significantly oversold," may experience a temporary rebound that could create short-term volatility in gold prices, potentially offering buying opportunities.

Olive Resource Capital maintains approximately 50% of its assets in gold and platinum group metals (PGMs), focusing on highest-conviction names. The company also sees potential in PGMs, which are currently out of favor but face fundamental supply constraints with production dominated by South Africa and Russia.

With ongoing fiscal challenges, potential monetary policy adjustments, and geopolitical uncertainties likely to persist through 2025, the fundamental case for gold as both a portfolio diversifier and growth opportunity remains compelling. Investors who can look beyond short-term price movements to focus on quality assets and management teams are well-positioned to benefit from this developing investment cycle.

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Interview with
Shane Williams, President & CEO of West Red Lake Gold Mines
Alex Black, Executive Chairman of Rio2 Ltd.

Recording date: 25th April 2025

In a recent panel discussion, Shane Williams, CEO of West Red Lake Gold Mines, and Alex Black, Executive Chair of Rio2, shared valuable perspectives on gold mine development that investors should consider when evaluating mining stocks.

The executives lead distinctly different projects: West Red Lake's Madsen mine is a high-grade underground operation in Canada, while Rio2's Fenix Gold is a large open-pit low-grade project in Chile. This contrast highlights the diverse approaches within the gold mining sector.

Williams described Madsen as a data-driven operation requiring intensive geological understanding through 150,000 meters of detailed drilling. "It's not a visual mine. So you can't visually follow the gold," he explained. The mine employs three levels of geological modeling and will process 800 tons daily with an expected annual production of 65,000-70,000 ounces at full capacity.

In contrast, Black characterized Fenix Gold as "a massive 400 million ton ore body sitting at the top of a hill." Rio2 will move approximately 20,000 tons daily with a grade of about 0.5 grams per ton, compared to Madsen's 8 grams. First gold production is anticipated in January 2026, targeting 100,000 ounces annually by year-end.

Both executives emphasized that successful mine development depends on experienced management teams – a resource increasingly scarce in the industry. "There's been a brain drain in the mining sector over the last 20 years," Black noted, while Williams cautioned investors against taking management credentials at face value.

The discussion highlighted several red flags investors should watch for, including projects with extended development timelines. "A project should take three to four years to build roughly," Williams stated. "If that project is not moving, there's something there that either they can't advance or there's some issues."

The executives advocated for leadership approaches focused on empowerment rather than micromanagement. "If you're a micromanager, you're going to lose," Black emphasized, particularly in project development where numerous workstreams must progress simultaneously.

They also discussed industry challenges including the need for consolidation among junior miners, management ego as a barrier to necessary mergers, and the importance of transparency with shareholders.

For investors, the key takeaways include thoroughly evaluating management credentials, understanding the specific challenges of different mining methods, recognizing timeline red flags, and appreciating the necessity of transparency and appropriate leadership approaches in successful mine development.

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Interview with Philip Williams, Director & CEO of Iso Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/isoenergy-tsxiso-nyse-listing-on-horizon-as-company-expands-athabasca-basin-drilling-6792

Recording date: 25th April 2025

IsoEnergy, led by CEO Philip Williams, has established itself as a diversified uranium explorer and developer with a portfolio spanning Canada, the United States, and Australia. The company is advancing its flagship Hurricane project in Canada's Athabasca Basin, which boasts an exceptional resource of 48.6 million pounds at 34.5% grade, making it one of the highest-grade uranium deposits globally.

The Hurricane deposit's value extends beyond its impressive grade. Strategically located in the eastern Athabasca Basin near existing infrastructure, including the McClean Lake mill, the deposit continues across a property boundary onto land owned by Cameco and Orano. Recent drilling has revealed promising results, with elevated radioactivity detected in multiple locations, including a significant intercept 2.8 kilometers from the main deposit.

Williams employs a "fried egg" analogy to describe their exploration approach: "In the center of the egg is the ultra-high grade. And as you get to the outside of the egg, when you move out of the yolk into the whites, that's where you have lower grade." Recent findings suggest they've identified the "whites" of potentially new deposits and are now searching for the high-grade "yolks."

Beyond Hurricane, IsoEnergy owns past-producing uranium mines in the United States that could restart within 3-6 months when market conditions improve. These conventional mines offer significant operational flexibility, as Williams notes: "You can turn them on, turn them off, batch mine them," unlike larger projects requiring substantial capital investment.

With $50 million in cash and a $30 million equity portfolio, IsoEnergy is well-positioned to advance its business plan despite market volatility. The company's diversified strategy reduces the risks associated with single-asset, single-jurisdiction uranium companies.

Williams highlights a fundamental disconnect in the uranium market: "It costs more marginally to produce uranium than it's trading at right now. So at some point the rubber will hit the road." He believes an eventual price correction is inevitable as producers cannot sustain losses indefinitely.

IsoEnergy's ultimate vision is to build a robust, diversified uranium producer delivering shareholder returns across multiple timeframes. As Williams concludes, "In uranium, if you want to be a relevant long-term bigger player, you need to have multiple assets" – a strategy that positions IsoEnergy to weather the sector's volatility while capitalizing on expected long-term growth in uranium demand.

View IsoEnergy's company profile: https://www.cruxinvestor.com/companies/isoenergy

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Interview with Dr. Mike Jones, MD of Impact Minerals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/impact-minerals-asxipt-developing-critical-high-purity-alumina-project-in-australia-6331

Recording date: 23rd April 2025

Impact Minerals has announced a transformative 50/50 joint venture to acquire Hipura Proprietary Limited, positioning the company to fast-track its entry into the high-purity alumina (HPA) market. The acquisition includes a nearly-completed pilot plant capable of producing at least 25 tons per annum of HPA, requiring just final electrical connections and approximately $500,000 in capital to commission over the next 3-6 months.

The $2.2 million acquisition price is split equally between Impact and its partners, with Impact contributing $1.1 million. Both parties have also committed a further $1 million in working capital ($500,000 each) to bring the pilot plant to operational status.

"This acquisition significantly accelerates our path to production," said Dr. Mike Jones, Managing Director of Impact Minerals. Hipura's solvent extraction technology is similar to that used by Alpha HPA, which has achieved a billion-dollar market capitalization in the HPA space.

The joint venture company, named Alluminous, will operate independently with a board structure consisting of two members from Impact, two from other shareholders, and an independent chairperson who will have the casting vote in case of disagreements.

A key strategic element is the potential integration with Impact's existing Lake Hope project in Western Australia. Impact is exploring whether material from Lake Hope could serve as feedstock for the Hipura process, potentially reducing costs compared to the chemical feedstock currently required.

The acquisition positions Impact as the second most advanced HPA producer in the Australian market behind Alpha HPA. "No one else in the HPA space has either got a pilot plant or can produce anywhere near that kind of quantity. We've taken a huge step forward over our peers," noted Dr. Jones.

The HPA market has seen growing interest, particularly in applications for semiconductors, LED lighting, and batteries. Alpha HPA has reported indicative demand exceeding 30,000 tons for its 10,000-ton plant, suggesting strong market potential.

Unlike Alpha HPA's large-scale approach requiring significant capital expenditure, Impact believes the Hipura process enables a modular approach with smaller, more capital-efficient plants that can be scaled up as demand grows.

With North American investment groups involved in the joint venture, Impact is also eyeing potential geographical expansion, particularly targeting the growing semiconductor industry demand for HPA in North America.

The transaction is described as "clean" with no hidden liabilities or unresolved IP issues, providing a fresh start for the technology under the new joint venture arrangement.

View Impact Minerals' company profile: https://www.cruxinvestor.com/companies/impact-minerals

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Compass, episode 12

Our previous episode: https://www.cruxinvestor.com/posts/gold-shines-while-traditional-safe-havens-falter-7015

Recording date: 23rd April 2025

Mining royalty companies are emerging as an attractive investment option for those seeking commodity exposure with reduced operational risk. Recent market developments, particularly the acquisition of Orogen Royalties' tier one royalty on the Silicon deposit by Triple Flag, have highlighted the value proposition of these unique business models.

Unlike traditional mining operations, royalty companies operate on a fundamentally different model. They hold the right to a percentage of revenue, typically 1-2% of the net smelter return, providing commodity price exposure without the corresponding operational costs or risks. This business model originated in the oil and gas industry but has been successfully applied to mining, particularly in gold where returns are straightforward to calculate.

The key advantage of royalty companies lies in their risk profile. As Samuel Pelaez, President & CEO at Olive Resource Capital explains, these companies have "no exposure to the cost portions or the risk that's attributable to cost overruns and margin compression." Their sole exposure is to commodity prices and production success. Additionally, most royalty agreements include rights to exploration upside, covering new discoveries within the area of interest.

This capital-light business model allows companies like Franco Nevada to operate with minimal staff while commanding a market capitalization of C$46 billion. Once due diligence is complete and royalties are secured, the business essentially involves waiting for royalty checks to arrive.

Royalty companies typically trade at premium valuations of 10-20 times revenue compared to traditional mining companies. This reflects their lower risk profile and appeal to generalist investors seeking gold exposure without the complexity of evaluating individual mining projects.

"Tier one royalties" – those on large-scale assets in good jurisdictions – are particularly valuable but rarely held by small public companies. The recent acquisition of Orogen's royalty on AngloGold Ashanti's Silicon-Merlin project (with approximately 16 million ounces of gold resource) by Triple Flag valued it at approximately 15-16 times projected annual revenue.

When evaluating royalty companies, investors should focus on royalties that are either currently cash-flowing or have a clear path to production. As Derek Macpherson, Executive Chair at Olive Resource Capital notes, "A royalty that isn't producing cash flow or doesn't have a clear path to production is worth zero."

As gold prices remain strong, royalty companies continue to offer an appealing way to gain leveraged exposure to precious metals without taking on the full range of risks associated with mining operations.

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