The following is a transcription of the above video, and The Market Online has edited it for clarity.
Our next company is Adventus Mining (TSXV:ADZN), an Ecuador-focused copper-gold exploration and development company.
Joining us today is President and CEO Christian Kargl-Simard and Board Chair Maryse Bélanger.
TMO: We’ll start with Christian. For members of our audience who may not be aware, can you please provide some background about Adventus Mining, and describe the El Domo project – specifically, its short-term goals?
Kargl-Simard: Sure. Adventus has been a public company for around seven years. We’ve been six years in Ecuador, primarily advancing our El Domo deposit to the exciting stage, shortly, the start of construction. We believe this is the highest grade undeveloped copper project in the world. And we have put together project financing, our construction team, we have permits now to start construction and we’re rearing to go in what looks like potentially the next bull market for our industry.
TMO: And Maryse, can you tell us about your background and what your role will be with the company?
Bélanger: Technically, the operational background, so I alternated over the years between technical services, corporate roles and operations, but also worked in projects and building projects as well. So, I’ve been focusing recently more on Board work, but went to visit the El Domo project and was extremely impressed with the team, the quality of the project, and also the quality of the technical work completed to date. So, I decided to get involved. Apart from my Board role as Chair, which is really to manage the Board and make sure that we provide that oversight to the management team. I will be taking on and I’ve taken on the role of the Chair of the Technical Committee so that I can oversee the build of that project.
TMO: Christian, in early March, Adventus signed an investment agreement with the Government of Ecuador for the development of the Condor Project. Tell us about this project and what it means for the company.
Kargl-Simard: Yeah, sure. I talked initially about the El Domo project and that has been our focus for the last six years in Ecuador. But late last year, we announced the acquisition of a company called Luminex Resources. Also was operating Ecuador, a large copper gold exploration portfolio in the country. So, we now have 13 copper gold projects in the country, the second largest exploration portfolio in the country. Our second most important project is called Condor. Condor is very topical in this market as gold prices are hitting all time highs every day. This project has 8 million ounces of gold equivalent, just south of the concessions that make up the Fruta del Norte mine owned by Lundin Gold. Just prior to this interview, I went and looked at the model representing the preliminary economic assessment that was completed in 2021, and I put in the gold and silver price as of today.
And the model spat out after tax an $800 million NPV5 and a 32 per cent after tax IRR. This is a project that will grow substantially in size from the 8 million ounces already, and we’ll probably be able to support two to 300,000 ounces of gold equivalent production for 10 to 20 years. So, while it’s not our first mine, we’re going to put in production, it’s definitely a ton of optionality for our shareholders and specifically what you spoke to this investment protection agreement, we have a fully binding, signed off an investment protection agreement for our El Domo mine. The president of Ecuador came to PDAC this year and said Ecuador’s open for business, but also signed several MOUs for investment protection agreements in the development stage, and one of them was for Condor. So, this is a $100 million dollars exploration investment protection agreement. There’s been approximately $50 million spent on the project to date on exploration. That money is protected and there’s another $50 million that if we spend on it, is also going to be protected to 2037.
TMO: Maryse, in terms of investment value, where do you see the company headed over the next year or so?
Bélanger: Well, the El Domo project is of exceptional quality, so obviously I see it being built. The copper grades are something I’ve never heard of before in my 39 years in the business. And I think it can create an incredible platform for development and being the first mine in a series in Ecuador. So, no matter what, I see some real value creation and obviously it does help that I’m very bullish on copper.
You can follow Adventus Mining on the Venture Exchange under the symbol V.ADZN or head to its website at www.adventusmining.com for more information.
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