Canada’s mining industry is a tight-knit fraternity. Canada’s mining industry is a tight-knit fraternity.
When a London-based firm, with an Australian CEO residing in France and a seemingly too-good-to-be-true Brazilian asset, enters the Canadian market, curiosity sparks:
Is this real? Who are these people?
Today, Meridian Mining (TSX:MNO) partially answers that question by welcoming Bruce McLeod, 60, as Independent Chairman.
Just six months ago, McLeod completed a $1.2 billion sale of his last gold venture. He's a respected mining engineer and business builder with roots in a prominent mining family.
During his leadership at Sabina Gold & Silver, McLeod achieved a remarkable 411.63% stock market return and raised over $1 billion in eight years. Sabina, valued at $80 million when he assumed control in 2015, progressed through exploration, feasibility, permitting, and financing to a successful sale in April 2023.
With Meridian Mining, currently valued at $76.4 million (all figures CAD$), there's potential for a similar trajectory. McLeod has been through this process before and can guide Meridian on how to deliver a project that appeals to the market.
Meridian's 2023 PEA study for its Cabaal copper and gold deposit in Brazil revealed a robust after-tax NPV5 of USD $573 million, a 58.4% IRR, and a 10.6-month payback period. These exceptional returns stem from a shallow deposit with simple metallurgy. The mine’s expected life is over 22 years, with management hinting it could grow significantly, thanks to many exploration opportunities along a 50 km mineralized belt.
In a 2014 interview, former Teck Resources ($26B market cap) CEO Don Lindsay, shared why miners covet long-life, low-cost assets. Mining is “cyclical business,” Lindsay stated. He continued, “and you know that you're going to get all of your money back in 2 or 3 good years. What you don't know is when those 2 or 3 good years [will] be. However, if you have 50 years, you're going to have those 2 or 3 good years 5 or 6 times." Lindsay's words resonated with me and draw me to Meridian's Cabaal project.
McLeod’s career has focused on North American mine developments, including Kaminak’s $520 million sale to Goldcorp in 2016. With prior experience in Brazil as well, McLeod served as a director during Luna Gold's construction phase, now under Ross Beaty’s Equinox Gold ($2B market cap).
Notably, he's the son of Don McLeod, a Canadian Mining Hall of Famer whose autobiography, "The McLeod Luck," chronicles their mining legacy. Bruce’s sister, Catherine, chairs major producer Kinross ($9.07B market cap), while cousin Rob is an accomplished explorer.
Meridian sought a reputable Canadian chairman to guide the board and champion asset quality at an institutional level.
As one of mining’s leading developers, McLeod's appointment could mark a turning point in the company's journey. As a biased shareholder and advisor, his presence signals a significant step forward in our narrative.
Breaking: New Chairman Ignites Confidence in Cabaal Project (substack.com)