Trusted News Since 1995
A service for global professionals
·
Tuesday, December 17, 2024
·
769,849,083
Articles
·
3+ Million Readers
Lion Electric, a Quebec-based manufacturer of electric trucks and buses, says it expects to seek protection from creditors under the Companies’ Creditors Arrangement Act.
The company says it has defaulted on its debt and is in talks with its senior lenders to obtain additional funds for a new debtor-in-possession credit facility.
It says it plans to restructure its business and pursue a formal sales and investment solicitation process.
In early December, Lion Electric announced it had reached an agreement to sell its Mirabel, Que., innovation center for $50 million and would use the proceeds to pay down its debt.
The company temporarily laid off 400 employees and shut down production at its Illinois plant earlier this month after getting a two-week reprieve from its lenders to explore its alternatives.
The company said at that time that its 300 remaining employees would focus on bus manufacturing, sales and delivery.
Trading in Lion Electric shares on the Toronto Stock Exchange was halted for failure to maintain exchange requirements.
Trusted News Since 1995
A service for global professionals
·
Tuesday, December 17, 2024
·
769,849,083
Articles
·
3+ Million Readers
Trusted News Since 1995
A service for global professionals
·
Tuesday, December 17, 2024
·
769,683,185
Articles
·
3+ Million Readers
Name change reflects evolution to a world-class mining Company alongside Ivanhoe Mines and Ivanhoe Electric
■
Ivanhoe Atlantic continues to advance development plans for its high-grade, long-life Guinea iron ore project
■
Definitive Feasibility Study and Environmental and Social Impact Assessment underway. Due for completion in 2025
■
Company remains on track for Final Investment Decision and commencement of construction in 2025
■
Ivanhoe Atlantic enjoys the strong support of its majority US-based shareholders and remains well funded to move to construction in 2025
LONDON: US Company Ivanhoe Atlantic Inc. announced today it has confirmed its name change from High Power Exploration Inc. The name change reflects the Company’s continued evolution to producer with the planned commencement of construction at the Kon Kweni iron ore project in Guinea, the Company’s commitment to the Liberty Corridor multi-user infrastructure project in Liberia and its focus on growing its asset portfolio.
Company Comment:President and CEO, Bronwyn Barnes
“We are delighted to transition to our new Ivanhoe Atlantic name and branding, which reflects our inclusion into the Ivanhoe group of companies which include Ivanhoe Mines Ltd., TSX:IVN and Ivanhoe Electric Inc., TSX:IE, NYSE:IE.
As we continue our path to construction at Kon Kweni in Guinea and advance our exploration plans at St John River in Liberia, it gives the Board great pleasure to join the Ivanhoe group of Companies operating in multiple international jurisdictions.”
Our name change is symbolic of our focused growth over the last two years that has been supported by our committed shareholders, which are majority US domiciled. We are well funded to move to a final investment decision in 2025 and our shareholder base and project ownership remains unchanged.
Our focus on including Atlantic in the new name reflects our strong roots in the United States and our vision to develop this important mineral trade route focused on the Atlantic.
Ivanhoe Atlantic is pleased to report the following key activities which are currently underway for Kon Kweni
About Zutari
Zutari has a 90-year history, operating extensively across Africa and the Middle East and specialises in infrastructure development on the African continent, with a particular focus on bulk logistics transport. Further information on Zutari can be found at https://www.zutari.com
Management Comment: Chief OperatingOfficer, Kevin McLean
“We are excited to partner with Zutari on the Kon Kweni DFS which will provide the final capital cost and operating estimates that will be essential for FID in 2025. Zutari’s expertise in bulk logistics transport infrastructure development will be instrumental in optimising and de-risking the project in advance of commencement of construction. Our focus is on ensuring the project’s infrastructure design enables the safe, reliable, and sustainable delivery of Kon Kweni’s high-grade iron ore to international markets.”
About Ivanhoe Atlantic
Ivanhoe Atlantic is an American mining company focused on advancing its flagship high-grade long-life iron ore mine in Guinea and other projects in Liberia that meet the US and global critical mineral supply chain. We are rapidly progressing a number of corporate and project activities that include preparing for a listing on the Australian Stock Exchange in 2025.
Ivanhoe Atlantic’s major shareholder and technology provider is I-Pulse Inc, a US Company founded and chaired by Mr. Robert Friedland and has a number of high profile American institutional and private investors as shareholders.
For more information about Ivanhoe Atlantic and its projects, please contact:
Conveyor belt moving ore from the crusher at the Buckreef Gold mine. CREDIT: TRX GOLD
Last October, TRX Gold announced its best drill result ever, intersecting 5.48 g/t gold over 35.5 metres at the Buckreef Gold project in Tanzania. The company also announced the discovery of a promising new gold mineralization shear zone, named “Stamford Bridge zone,” at which the drill results are revealing geological characteristics and mineral alterations that are similar to that at Buckreef’s main zone.
“The Stamford Bridge zone is an exceptional discovery, resulting in the most significant mineralization identified within Buckreef Gold’s drill history,” said TRX Gold’s CEO Stephen Mullowney (SM).
After the announcement, I had the opportunity to discuss the company’s recent successes with Mr. Mullowney.
Being an English Premier League (EPL) fan myself, I noticed the naming of exploration sites such as Anfield and Stamford Bridge after EPL stadiums in England, so I asked what the story was behind that. Mullowney explained that many of TRX Gold’s employees at site follow “football” and cheer for these same teams. It is a bit of fun and a form of team building if you will! It inspired the title of this article: “You will never explore alone!”
CMJ: As a conversation starter, let’s talk a bit about history: Can you please talk to us about the history of TRX Gold, your background, and how you became CEO?
SM: Working at PWC as partner in the mining M&A department, I worked as a consultant to many mining companies on transactions, balance sheet clean-ups, and all matters of sort. I came across TRX Gold and its Buckreef Gold project, then named, Tanzanian Gold Corp., and really liked what I was seeing in terms of the project, the deposit, and believed that I could make a positive contribution to improving operations and the balance sheet, and really getting the project off the ground. I introduced myself to the founder and then the CEO, James Sinclair, and the rest is history. I was invited to join TRX Gold at the helm and then formed the team of executives and board of directors that you see in place today. In three short years, this refreshed team has taken Buckreef Gold from an exploration company to a junior gold producer, with two million ounces in mineral resources and with tremendous potential for future production and discovery growth.
CMJ: Can you please explain the reason for the recent change of the ticker symbol in TSX in 2023?
SM: The ticker symbol in the U.S. on the NYSE-American was already TRX. It was a strategic decision, and one to facilitate marketing and awareness, to change our name to TRX Gold, and at the same time, change our Canadian ticker symbol on the Toronto Stock Exchange to TRX.
CMJ: Can you please walk us through the current portfolio and activities at the Buckreef Gold project in Tanzania?
SM: We are growing the Buckreef Gold project in Tanzania in a low-risk, phased approach, consisting of a low-risk, high-margin open pit gold mining operation and more than two million oz. of gold in measured and indicated mineral resources (at the 16 km2 property). Our company completed its third mill expansion in July 2024 and expects to increase its annual gold production guidance for 2025.
CMJ: What is your growth strategy and the status of the plant expansion?
SM: The strategy is simple: We utilize the positive cash flow from operations to reinvest back into growth activities that are value-accretive to our shareholders. This is achieved by increasing the milling capacity to increase annual gold production and by drilling to uncover more ounces in the ground. It can also, if value accretive, be for M&A opportunities. The company is debt-free and has not had to raise equity since 2021. This is unique for a junior miner in development.
CMJ: How does Tanzania fare as a mining jurisdiction? How do you compare it to other jurisdictions in Africa, especially West Africa?
SM: Tanzania is in the East part of Africa. It benefits greatly from a mature mining sector, with many Tier 1 gold producers operating some of their most important projects in the country for the last few decades. In fact, Barrick’s Bulyanhulu’s gold mine is about 40 km east of us, and about the same distance to the north of Buckreef is Anglo Gold Ashanti’s Geita mine. These are what we would call “elephant” sized operations. Because of this maturity, the country benefits from mature infrastructure, skilled labour force, and available mining related materials, contractors, and builders. Everything we need to grow, build, and operate can be found in the country, which reduces waiting times and cost versus if we had to rely on a foreign supply chain. The country welcomes foreign investment, demonstrated by the approximate US$2 billion of mining investment in the country in the last two years or so, primarily from either M&A transactions in the sector or newer projects (deposits) being developed (thanks to the increasing price pf gold). Mining makes up about 10% of the country’s GDP.
CMJ: How does TRX Gold interact with local community in Tanzania as part of the company’s social responsibility?
SM: We have been in the country for at least a decade now, so our relationships in the country are very good. We know and understand the people, the politicians, the mining ministries, and the local communities. This makes for a very strong foundation. Along with our JV partner, the State Mining Company, we partner every year on social well-being and community projects for the improvement and sustainability of the communities that surround us and where 100% of our employees and contractors and their families live (up to 600 and counting employees and contractors working at Buckreef Gold). We set aside a budget to work on projects such as building or improving schools, healthcare facilities, social programs such as skills training, and programs of sort. On site, employees benefit from ongoing health and safety training, skills training, and from time to time we host students for apprenticeships.
CMJ: Finally, how does the future look like for TRX Gold?
SM: The future is very bright. TRX Gold is a unique investment opportunity. We have and will continue to grow in a low risk, phased manner, whereby we will continue to create shareholder value with a focus on non-dilution. Near term catalysts or drivers will be an increase in annual gold production expected for fiscal 2025 and exploration and brownfield drill results, especially from the newly discovered Stamford Bridge zone. Additionally, the price of gold is at an all-time high, with growing public opinion that it will continue to rise. For a low-cost, high-margin project like ours, the future is bright indeed!
The Séguéla open pit mine in Côte d’Ivoire consists of the Antenna,
Koula, Agouti, Boulder, Ancien, and Sunbird deposits, with a mine life
of eight years, based on reserves reported as of Dec. 31, 2023. It is
located near existing infrastructure, including grid power, transport,
and water resources. CREDIT: FORTUNA MINING
Recently, I had a conversation with Jorge A. Ganoza (JG), president, CEO, and director of Fortuna Mining to discuss the company’s transformation into a renowned mid-tier precious metals producer, and how it is continuing to grow its portfolio in premier international mining regions.
CMJ: As a conversation starter, let’s talk a bit about history: Can you please talk to us about the history of Fortuna Mining and its current portfolio?
JG: Fortuna Mining is a Canadian-based precious metals mining company, with five operating mines and an advanced exploration project located in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, Peru, and Senegal. We produce gold and silver and generate shared value over the long term for our stakeholders through efficient production, environmental stewardship, and social responsibility.
Fortuna is a public company, with its shares listed on the New York Stock Exchange (NYSE: FSM), Toronto Stock Exchange (TSX: FVI), and Frankfurt Stock Exchange (Frankfurt: F4S). Our corporate office is in Vancouver, B.C., and our regional head offices are located in Lima, Peru and in Abidjan, Côte d’Ivoire.
Fortuna was founded in 2005. Initially, focused on silver opportunities in Latin America, the company acquired the Caylloma silver-lead-zinc mine located in Arequipa, Peru. A year later, we re-initiated production at Caylloma mine, and acquired 76% stake in the San Jose silver-gold project located in Oaxaca, Mexico. In 2009, we acquired 100% interest in San Jose project, and construction began in 2010. In 2016, we acquired the Lindero gold project in Salta, Argentina, and started construction on the project in 2017. In 2021, Fortuna expanded into West Africa by acquiring the Yaramoko mine in Burkina Faso, and the advanced Séguéla gold project in Côte d’Ivoire, and immediately started construction on the Séguéla project; a 3,750 t/d open pit gold mine. The Séguéla mine poured first gold in May, 2023. We also strengthened our presence in West Africa by acquiring the Diamba Sud gold project in Senegal. Today, Fortuna is a seasoned, mid-tier precious metals producer that continues to grow its portfolio in premier mining regions.
CMJ: Effective June 20, 2024, Fortuna Silver Mines Inc. changed its name to Fortuna Mining Corp. Can you please explain the reason for the rebranding?
JG: In the early days of the company, we did not have much money, but we had big ideas, and the company was not well-known. At that time, silver was trading at a good price, and it made sense to focus on it and on our operations in Peru and Mexico, which were two of the largest silver producing countries. It made sense to use “Silver” as an identifier in alignment with that strategy.
Today, Fortuna is a very different company from what it was 20 years ago. With more than US$1 billion in sales and more than 500,000 oz. of gold targeted in annual production for 2024, gold accounts for 80% of our total sales, and silver accounts for only 10%. The remaining 10% comes from lead and zinc sales. We employ over 5,000 people, with a diverse workforce that includes 16% women.
We believe the old name does not represent who we are anymore, nor it aligns with the future vision of the company. We continue to grow our portfolio in premier mining jurisdictions, and we are pursuing more opportunities in gold, but we have not given up on silver. We remain enthusiastic about both of them, but we have achieved more success in gold; hence, the name change.
CMJ: Last year, I attended the commissioning of the new Séguéla mine in Côte d’Ivoire. How does Côte d’Ivoire fare as a mining jurisdiction? How do you compare it to other jurisdictions in, for example, Latin America?
JG: Côte d’Ivoire is an extremely welcoming jurisdiction for responsible mining investment, and we rate it very highly. The country has a competitive mining code and a strong vision to become a leader in gold production in West Africa and is making significant strides toward this goal. The leaders and government officials are well-educated and have a good technical background and understanding of the industry. Compared to other regions where we operate, Côte d’Ivoire certainly ranks among the most welcoming and supportive jurisdictions.
CMJ: The company has two mines in West Africa. With the acquisition of Chesser in Senegal, what is the current portfolio and your growth strategy in West Africa?
JG: We first ventured into West Africa in mid-2021 through the acquisition of Roxgold and have pursued steady growth in the region. Since the acquisition, we have grown from one operating mine to two (Yaramoko mine in Burkina Faso and Séguéla mine in Côte d’Ivoire) and added an advanced exploration and development project, Diamba Sud gold project in Senegal, through our acquisition of Chesser Resources.
West Africa offers a prime landscape for the gold mining industry, and we are actively pursuing strategic opportunities as they arise. While major players like Newmont and Barrick are well-established, we see significant potential in the mid-sized producer segment, where competition is less intense. Fortuna has established itself as a strong player within this segment, and we intend to continue building on that strategic advantage.
CMJ: There is an ongoing nationalization pattern of African governments, especially those under military juntas, attempting to exert greater control over their natural resources. Yaramoko mine in Burkina Faso is Fortuna’s highest-grade gold mine, and the government recently nationalized two gold mines, ending legal dispute between rival companies. How does this affect your operations in the West African country?
JG: In the case of the dispute between Endeavour Mining and Lilium, my understanding is that the government intervention yielded a positive outcome. In response to comments by Burkina Faso’s President Ibrahim Traoré in October regarding mining companies operating in Burkina Faso and the possible withdrawal of existing mining permits, we sought direct clarification from the Ministry of Mines and received confirmation that the government has no plans to withdraw existing mining permits which are in compliance with Burkina Faso’s laws. The Yaramoko mine is in compliance with all material laws, and operations continue to be conducted normally.
While the mining environment in Burkina Faso has become more complex in recent years, we continue to find government officials responsive and open to engagement. We are currently focusing investment only within the fence of Yaramoko mine.
CMJ: Moving from Africa to Latin America, how much does the political instability affect Fortuna Mining’s operations?
JG: Operating in developing economies means the rule of law is not necessarily stable. The success of a mining project is dependent on government support. When countries with long mining traditions, like Mexico, are changing the mining concessions law and are making permitting difficult, project developments are hindered. In addition, all these new laws prevent us from using our mineral titles, so we are not able to sustain the capital-intensive construction phase anymore. Finally, Mexico has reserved all open ground mineral operations for the state, so there will be no more private explorations there in the predictable future.
CMJ: How does Fortuna work with local communities as part of the company’s social responsibility?
JG: Our approach to social responsibility starts with understanding the unique development goals of each region where we operate. We aim to become a strategic partner by working collaboratively with local stakeholders to help achieve these goals. Our initiatives are typically focused on key areas such as education, healthcare, and infrastructure.
In 2023, we invested approximately US$8 million in social responsibility and support programs, and we expect to maintain similar levels of investment this year. We are deeply engaged in each of the communities where we operate, ensuring we listen to their needs and strive to align ourselves as true partners to both our host communities and governments.
In Côte d’Ivoire, for example, we have partnered with the central government to combat cataract-related blindness. To date, we have supported surgeries for nearly 2,000 individuals, making a tangible difference in the lives of those in need.
CMJ: Finally, what are the future priorities for Fortuna?
JG: Looking ahead, our focus is not on reaching the symbolic milestone of one million oz. of annual production in the immediate term. Instead, we are committed to solidifying our position as a leading mid-sized gold producer. We are targeting a production range of approximately 500,000 oz./y, with a strong emphasis on keeping our all-in-sustaining costs highly competitive — at or below the industry median of US$1,500 per oz.
Fortuna’s current reserves amount to just over three million oz. of gold equivalent in reserves and approximately 1.7 million oz. in inferred resources across our portfolio.
While we currently lack the long-life mines that would allow us to project operations for a decade or more, we are actively working to build a portfolio that supports this vision. Over the coming years, we will focus on deploying capital to pursue high-value opportunities as they arise.
Prime Minister Justin Trudeau is fighting once again for his political life. Behind closed doors.
At an emergency meeting Monday evening — called after Chrystia Freeland, Trudeau’s now former top deputy and one-time “minister of everything” quit as finance minister — the prime minister came face to face with Freeland along with an angry and bewildered caucus before he planned to go explain the crisis to the Liberal party’s top donors.
Barrick Gold will suspend operations in Mali if gold shipments continue to be blocked, the company said on Monday as it struggles to reach agreement with authorities on a new mining code in the West African country.
Conditions at the miner’s Loulo-Gounkoto complex have “deteriorated significantly”, Barrick said, adding that employees have been imprisoned without cause and shipments of bullion have been blocked.
“If shipments remain suspended, Barrick will be compelled to suspend operations, further impacting the viability of this critical economic driver for Mali,” the company said.
Shares of Barrick Gold were trading down by 1.8% at the Toronto Stock Exchange at 12.13pm ET (5.30pm GMT).
A spokesperson for Mali’s mines ministry did not immediately respond to a request for comment on the matter. The ministry has previously not commented on the arrests of mining executives in the country.
The world’s second-largest gold miner by volume has been negotiating with authorities in Mali for a new mining code to govern its operations in the country for about a year. Barrick said those talks have been “unsuccessful”.
In a research note, Jefferies said the market was already expecting challenging negotiations for the company in Mali.
Negotiations stalled even after Barrick made “significant concessions”, which the government rejected, Barrick said.
A senior official at the Ministry of Mines told Reuters “negotiations are continuing, they’re ongoing”.
The government wants Barrick’s mine in the country to be governed under new mining rules adopted in 2023, Barrick said, but the law has no application to existing operations.
Mali authorities have arrested staff from Australia’s Resolute Mining, including its CEO Terence Holohan, who were released after the company agreed to pay $160-million to resolve a tax dispute. Executives from Barrick have also been detained and the government has an arrest warrant for Barrick CEO Mark Bristow.
Barrick said the charges against its staff are unfounded and called the arrest warrant against Bristow “illegitimate”.
“Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment,” the company said.
