The KE Report

Elemental Altus – 2023 Delivered Many Record Financial Metrics - 2024 Guidance And Royalty Partner Updates

Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE – OTCQX:ELEMF), joins me to review the record Q4 and record full year 2023 financial metrics, along with a number of royalty partner updates, and the 2024 guidance and acquisition strategy with the optionality from being cashed up, cash-flowing, and evaluating at an opportunistic range of mid-tier deal flow.
 
Full Year 2023 Highlights:
 
Record revenue of US$11.7 million and record adjusted revenue1 of US$17.9 million, up 69% on 2022
Record Gold Equivalent Ounces ("GEOs") of 9,122 ounces, up 56% on 2022
Record Operating Cash Flow plus Caserones dividends of US$6.1 million, up 894% on 2022, and record adjusted EBITDA1 of US$9.8 million, up 47% on 2022
US$20 million of accretive royalty acquisitions
 
Fourth Quarter 2023 Highlights:
 
Record Q4 revenue of US$4.0 million and record adjusted revenue of US$5.6 million, up 101% on Q4 2022
Record Q4 attributable GEOs of 2,843 ounces, up 75% on Q4 2022
Record Operating Cash Flow plus Caserones dividends of US$2.2 million, compared with a loss in Q4 2022, and record Q4 adjusted EBITDA1 of US$2.8 million, up 175% on Q4 2022
Maiden quarterly net profit of US$2.2 million, compared with a US$11.5 million loss in Q4 2022
 
2024 Outlook
 
Record guidance of 10,000 to 11,700 GEOs, representing at its midpoint a 19% increase on 2023 and top-line exposure to gold and copper prices
Significantly lower G&A expenditure following asset sales, which are also expected to generate milestone payments placing the company in a position to generate material cash flow
Repaid US$5 million debt in Q1 2024, leaving a strong balance sheet for royalty acquisitions with US$25 million undrawn on the credit facility and approximately US$10 million of cash as of April 16, 2024
 
Fred and I review a number of royalty projects and partner updates from operators on both the production and development side, as well as noting some of the prior year’s accretive options on projects to generate new royalties. We wrap up reviewing how these prior transactions and future acquisition potential tie into their corporate vision and strategy, and give them strong optionality; only further enhanced by rising gold and copper prices.  
 
If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email me at Shad@kereport.com.
 
In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording.
 
Click here to view recent news on the Elemental Altus Royalties website

Dave Erfle – Geopolitical Tensions And Financial Safe Haven Demand Is Driving More Interest Into Hard Assets

Dave Erfle, Editor of The Junior Miner Junky, joins us to discuss the various geopolitical and financial factors that are driving more investor interest out of traditional equities and high-flying tech stocks, and into hard assets like gold, silver, and the commodities.   We review some of the recent technical levels hit in gold, and what pricing areas Dave is watching for as support and resistance.  Despite how well the gold price has done, this hasn’t translated over into the kind of leverage in the gold stocks that many investors expected, and so we review some of the reasons that have held these PM equities back.  
 
Silver has also done well lately, along with copper, oil, and many commodities, and while some of the more senior producers have had some investor inflows, we have not seen that filter down into many of the juniors yet.   Dave outlines that it is critical to see silver break above $30, while the gold:silver ratio breaks below 80 to bring the animal spirits back into the more speculative portion of the precious metals stocks.
 
Click here to visit Dave’s site – The Junior Mining Junky.

Jeff Christian - Investment Demand For Gold and Silver, Growing Globally

Jeff Christian, Managing Partner at the CPM Group joins us to share his insights on the investment demand for gold and silver.
 
As much as we have heard of central bank buying out of China and other eastern countries, Jeff points out that we have seen a broadening of demand from other investors. Even the western investors are starting to show interest in the metals
 
As for Silver, we discuss recent comments that the world is running out of silver and if industrial demand is driving recent price moves.
 
Click here to visit the CPM Group website to keep up to date with
 
 

Kenorland Minerals - 2024 Exploration Update, Forecasting $24million In Exploration Expenditures With $19million Financed By Partners

Zach Flood, CEO and President of Kenorland Minerals ("Kenorland" or the "Company") (TSX.V:KLD - OTCQX:KLDCF - FSE:3WQ0) joins me to provide an overview of the 2024 exploration programs across the Company's portfolio of projects. $24million is foretasted in exploration expenditures with an estimated $19million being financed by partners. The partners include Sumitomo Metal Mining Canada Ltd. (“Sumitomo”), Newmont Corporation (“Newmont”) and Centerra Gold Inc. (“Centerra”). The projects are located in Quebec, Ontario, Manitoba, Saskatchewan, British Columbia, and Alaska.
 
I have Zach outline the larger work programs at the more advanced projects first. We then discuss some of the recent results and the projects that have been build up by Kenorland that could be next in line for JV or partners. There are a lot of projects held by Kenorland.
 
For a more detailed overview of the work ongoing and planned at the projects click here to read over the April 17th news release.
 
Please send me any follow up questions for Zach to Fleck@kereport.com.

Erik Wetterling – As More Junior Companies Are Acquired By Larger Producers – Which Companies Could Be Next?

Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to discuss the continued wave of merger and acquisition transactions we’ve seen during the lower sentiment period in the gold stocks, and which companies could be next. We review a number of transactions where the larger producers are taking over the advanced explorers and developers with defined ounces in the ground as well as the smaller producers with exploration upside.  Additionally, we are getting messaging from high net worth activist investors and senior miners taking strategic stakes in the junior precious metals explorers, that now is the time be positioning in quality projects for future development.
 
Erik highlights 2 junior gold explorers that he feels are starting to define the ounces and build out the kind of district scale mineralized trends that could attract some of the larger producers to potentially acquire these projects down the road.  He lays out the value proposition he sees developing in both First Nordic Metals (TSXV: FNM) (OTCQB: FNMCF) and Red Pine Exploration (TSXV: RPX, OTCQB: RDEXF). *
 
*In full disclosure, the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and also may be site sponsors of The Hedgeless Horseman website at the time of this recording.
 
Click here to visit Erik’s site – The Hedgeless Horseman

Thor Explorations – Q1 2024 Operations Review And Exploration Update At Segilola And Douta Projects

Segun Lawson, President and CEO of Thor Explorations (TSX.V:THX – US:THXPF), joins me to review the Q1 2024 operations at the Segilola Gold Mine, and provides a gold exploration update for Segilola,  the new Thor Lithium claims in Nigeria, and increased land and exploration at the Douta Project in Senegal.
 
 Segilola Q1 2024 Operational Highlights
 
Gold production of 19,589 ounces ("oz")
Gold produced from 235,900 tonnes milled at an improved average grade of 2.85 grammes per tonne ("g/t") of gold ("Au")
Mine production of 465,895 tonnes at an improved average grade of 2.07g/t of Au for 30,997oz
Ore stockpile increased by 9,543oz to 29,265oz of Au at a grade of 1.05g/t of Au which includes a high-grade stockpile of 6,116oz of Au at a grade of 4.10g/t of Au
Successfully upgraded and commissioned three additional CIL tanks in the process plant with drawdown of excess gold in circuit successfully commenced in March 2024
Additional near mine drilling targets delineated with drilling having commenced in April 2024
Payment of US$8.2 million towards the outstanding senior debt facility
 
At Segilola, the focus of exploration activities has been within a 25km radius from the mining operations, utilizing reverse circulation (RC) drilling, stream sediment sampling, and grid auger sampling.  There are several potential satellite pit areas that can augment production extending mine life, and there will be more updates as drill results keep coming back in.  Additionally, in 2024, the exploration team will also be exploring at dept under the pit, following high-grade shoots, and the potential for underground mining.  There is 5,000 meters of drilling planned for the next phase of exploration at Segilola, as well as 4,000 meters of drilling planned for the Nigeria Lithium tenements with newsflow to follow later this year.
 
At the Douta Project, the Company recently made an acquisition of additional land interests in two licenses. This move capitalizes on the company's progress in advancing the grassroots Douta gold project to over 1.7 million ounces of gold in global resources.  There is also ongoing environmental and social permitting, metallurgical test work, geo-technical studies, and definition drilling underway to feed into the work needed for the Preliminary Feasibility Study (PFS) slated for delivery to the market in 2024. Additionally, there will be 5,000 meters of additional drilling at both the Makosa Main, Makosa Tail, and the new Makosa West targets, focused on defining more near-surface oxide resources.
 
If you have any questions for Segun regarding the ongoing work at Thor Explorations, then please email me at  shad@kereport.com.
 
*In full disclosure, Shad is a shareholder of Thor Explorations at the time of this recording.
 
Click here to read over the recent news out of the Company.

Axel Merk - A Precious Metals Fund Fighting Off An Activist Investor, What It Means For The Funding Environment For Junior Stocks

Axel Merk, President and CIO of Merk Investments and Manager of the ASA Precious Metals Fund joins us to discuss the activist investor going after the ASA Fund and how this relates to the funding environment for junior resource stocks. We have heard for years how difficult it has been for junior companies to raise money. Major miners have consolidated and are focused on disposing of assets rather than acquiring juniors, exchanges have made it tougher for investors outside of Canada to fund companies, and costs continue to rise. All of of these factors build on themselves and put pressure on junior companies to do the work needed to discovery and grow assets.
 
Axel shares his insights on where money could come from and what he focuses on when investing and funding junior exploration companies.
 
Click here to visit the ASA website to learn more about the fund.

Baselode Energy – Exploration Update From the Catharsis, Hook, and Bear Uranium Projects

James Sykes, President and CEO of Baselode Energy (TSX.V:FIND – OTC:BSENF) joins me for an exploration update from the Catharsis Uranium Project, Hook Uranium Project and Ackio Target, and the Bear Uranium Project; all in the Athabasca Basin, of Saskatchewan.   We start off reviewing the unique “Athabasca 2.0” geological approach to exploration in areas along known mineralized trends, which have had limited to no drilling previously.
 
Next we focus on the recent drill assays returned from Catharsis with 11 drill holes completed for 2,837 meters covering six different target areas, and where follow-up drilling will be focused.  Then we reviewed the 7,500 meters of drilling from last year at the Hook Uranium Project, focused at the Akio Target around Pod 7 and Pod 4, and James outlined that there are 12,000 meters planned for follow-up in 2024 drilling. Additionally, there are 4,000 meters planned for regionally focused drilling on making a new uranium discovery across the Hook Project land package. Wrapping up we looked ahead to the inaugural 1,500 meter drill program at the Bear Project that starts in the next few weeks.   There will be lots of drilling news over the course of 2024.
 
If you have any follow up questions for James regarding Baselode Energy please email me at Shad@kereport.com.
 
Click here to get the latest news on Baselode Energy

Metallic Minerals – 2023 Drill Results At The La Plata Project, And The Inaugural Resource At The Keno Silver Project

Scott Petsel, President of Metallic Minerals (TSX.V:MMG – OTCQB:MMNGF),  joins us to review both the assay results from the 2023 drill program at the La Plata Copper Project in Colorado; and the inaugural resource at the Keno Silver Project in the Yukon.
 
We lead off discussing the recent news unpacking the 2023 exploration results at that La Plata Copper-Silver Project that was funded by a May 2023, 9.5% strategic equity investment by Newmont Corporation.  In the 4 drill holes over 4,530 meters there were the dual objectives of expanding on the 1.21-billion-pound copper and 17.6-million-ounce silver inferred mineral resource, and defining the controls to higher-grade mineralization as seen in drill hole LAP22-04. As announced in February 2023, LAP22-04 was a continuously mineralized discovery drill hole that intercepted 816 m grading 0.41% recovered copper equivalent ("CuEq"), with significant widths exceeding 0.5% to 0.7% Cu. The intersection also included higher grade zones exceeding 1% Cu with precious metals grades of up to 11.5 g/t Au+PGE and 47 g/t Ag.
 
Scott outlined that the 4 holes drilled by the exploration team did follow up on the area near the high-grade intercept hole # LAP22-04, and that three of four holes intercepted continuous porphyry style Cu-Ag-Au-PGE mineralization over 500 m in width at 0.3% Cu including significant intervals exceeding 0.5% to 0.7% CuEq with associated Ag, Au and PGEs. Drill hole LAP23-05 intersected 909 m of continuous mineralization from surface grading 0.26% CuEq over the entire hole length, with a 550 m wide higher-grade zone.  We discuss the variability in the grade and intensity of the mineralization in all drill holes, based on the density of veining and concentration of associated sulphides that carry the copper, silver, gold, platinum, and palladium. The deposit remains open to expansion at depth and along trend. Defining the geometry of these higher-grade porphyry units and alteration zones is an important focus of follow up drilling at the Allard resource area in 2024.
 
For the balance of the interview, we pivoted over to the inaugural resource at the Keno Silver project, initially announced Feb 26th, which defined 18.16 million ounces of silver equivalent (inferred), over 4 deposits (Formo, Fox, Caribou and Homestake), which is a major milestone for the project. The 171 km Keno Silver Project, neighboring Hecla Mining's current Keno Hill operations, has very clear opportunities to grow the 2024 Resource Estimate quickly and efficiently with additional drilling, while continuing to advance early-stage targets to new discoveries. The Formo target was the highest-grade and largest contributor to the inaugural NI-43-101 mineral resource estimate for the Keno Silver project, and there are opportunities for drilling at depth and along strike to add significant resources in this area, as well as the other 3 key project areas used in this resource.
 
If you have any follow up questions for Scott on Metallic Minerals,  then please email me at  Shad@kereport.com.
 
In full disclosure, Shad is a shareholder of Metallic Minerals.
 
Click here for a summary of the recent news out of Metallic Minerals.

Mike Larson - Rotation Into Commodities, How Long Can This Bull Last?

Mike Larson, Editor-In Chief at MoneyShow joins us to discuss the recent weakness in US markets and the continued strength of commodities. Rotation has been a key theme in markets over the past 3 years and now the commodities are seeing money flow in. We ask how much longer this bull run could last. We focus on gold, copper and energy sectors as well as cryptocurrencies.
 
Click here to visit the MoneyShow website to learn more about the upcoming conferences.