- ValOre Metals Corp. is a mining company of gold, platinum, nickel, palladium and uranium.
- The stock lost 90% of its value a few years ago due to the collapse of uranium prices following the Fukushima disaster.
- It has strong potential for recovery thanks to the acquisition of the Pedra Branca site in Brazil in 2019.
Also read our full analysis (in French).
Interview with Dustin Zinger, from ValOre Metals Corp’s investor relations department.
What are ValOre Metals Corp’s plans for 2020?
Our focus for 2020 will be on exploration (discovery and resource expansion) at Pedra Branca PGM project in Brazil. We have identified a number of targets that we plan to drill including new discoveries and areas for resource expansion.
We know that the Pedra Branca site has a lot of Palladium in its underground. What is the quantity according to the first estimates?
We published an NI 43-101 technical report which outlined approx. 1M oz of PGM+Au (Platinum group metals plus gold) – state tonnage and grade are 27.2 million tonnes grading 1.22 grams PGM+Au per tonne. That report can be found at the following link.
What other precious metals are present in the area?
The existing resources includes Palladium, Platinum, and gold. Rhodium is also present, however, more work is needed to assess whether there are economic Rhodium concentrations available.
Is Pedra Branca already supplied with electricity, and does it have roads to transport metals?
The property can be accessed via two Brazilian highways (BR020 and BR121) from Fortaleza, the nearest city with ~3M population, a deep water commercial port, and international airport. The town of Capitão Mor, immediately west of Pedra Branca, has electric power, potable water and a sewage system.
When will the feasibility study be published and when will the first drilling tests take place at Pedra Branca?
No feasibility study is yet contemplated. We are focusing our efforts on exploration, discovery, and resource expansion before we advance to economic assessments.
Do you believe in a rise in the price of Uranium, which would take off your property in Angilak?
The Angliak project is strategic to ValOre as it is one of the highest grade uranium deposits outside of the Athabasca Basin. However, the price of uranium appears to be in a holding pattern, and we will be patient and await higher prices.
Ross Beaty, the third majority shareholder, did not subscribe to the previous capital increase. Are you worried about that?
We were able to raise sufficient capital from existing shareholders and have significant insider ownership, i.e. 20%+.
Are you going to have to further increase your capital by issuing new shares to finance your projects?
With the price of palladium and platinum surging, interest in the sector has also increasing. We believe we will be able to access capital to advance our exploration efforts at Pedra Branca and this will involve the issuance of new shares as part of an equity financing. This is very standard in the mineral exploration sector.
Did you end 2019 with a profit or a slight loss, like in 2018? Will 2020 be a better year?
We are an exploration focused company, and thus do not anticipate revenues or earnings. We seek an increase in equity valuation of the company, vs earnings from mining and metals production. We are an exploration company.
We know that James Paterson, the CEO, buys a lot of shares, it’s a good sign of confidence in the future…
Insider ownership is approx. 20% – which aligns management with shareholders. Insiders put their money where their mouth is.
What are the strengths of ValOre Metals Corp that might make investors want to buy stocks?
There are five main factors which makes ValOre Metals compelling:
- Strong management team and vehicle – Experienced, successful management team with high insider ownership ;
- Substantial prior investment – US$35M spent by prior operators, excellent access and regional infrastructure ;
- High value, large scale mineralization – 38,000 hectares with >1M oz PGM+Au resource in surging PGM market ;
- Innovation and process improvement – Applying new technologies to identify exploration targets ;
- Discovery Pipeline is FULL.
This is also summarized in our corporate presentation.
If you want more information about ValOre Metals Corp, please read our full analysis (in French).
Disclaimer : this analysis is an indication, and not a purchase advice. Consequently, the author cannot be held responsible in the event of losses on the product(s) concerned. Any investment involves risk of loss. For more information, see our legal notice.
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Fondateur du blog, Nathanaël Dumortier est aussi investisseur de moyen/long terme en actions et trackers. Il se base surtout sur l’analyse fondamentale pour faire ses achats. Suivez-le sur :