focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
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Equinox hits commissioning milestone at one of the largest gold mines in Canada. Equinox Gold reported today that its Greenstone gold project in Ontario is 96% complete, with pre-commissioning activities ongoing in most of the main process plant areas and wet commissioning underway in select areas. Trident owns an off take for 100% of the gold produced up to 58.5koz per year at Equinox Gold’s Mercedes Gold Mine and Greenstone Gold Project until March 1, 2027.
Article 7
British / Mexican
ARTICLE 7
Expropriation 1. Investments of investors of either Contracting Party shall not be nationalised or expropriated, either directly or indirectly through measures having effect equivalent to nationalisation or expropriation (“expropriation”) in the territory of the other Contracting Party except for a public purpose, on a non-discriminatory basis, in accordance with due process of law and against compensation.
2. Such compensation shall amount to the fair market value of the expropriated investment immediately before the expropriation or before the subsequent expropriation became public knowledge; shall include interest at a normal commercial rate until the date of payment; shall be made without delay, be effectively realisable and be freely transferable. Valuation criteria shall include the going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine the fair market value.
3. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review, by a judicial or other independent authority of that Contracting Party, of his or its case and of the valuation of his or its investment in accordance with the principles set out in this Article. A
Chinese / Mexican
1. Neither Contracting Party may expropriate or nationalize an investment either directly or indirectly through measures tantamount to expropriation or nationalization (“expropriation”), except
(a) for a public purpose;
(b) on a non-discriminatory basis;
(c) in accordance with due process of law; and
(d) on payment of compensation in accordance with paragraph 2 below.
2. Compensation shall:
(a) be equivalent to the fair market value of the expropriated investment immediately before the expropriation occurred. The fair market value shall not reflect any change in value because the intended expropriation had become publicly known earlier;
(b) be paid without delay;
(c) include interest at a commercially reasonable rate, from the date of expropriation until the date of actual payment; and
(d) be fully realizable and freely transferable. 3. Without prejudice to the provisions set forth in Chapter III Section One, an investor whose investment is expropriated, shall have the right to a prompt review of its case by a court or by any other competent authority, pursuant to the applicable
I wouldn't write off Sonora,
KDNC appear to be using a British / Mexican trade agreement that is near identical to the one I believe Ganfeng are:
Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the United Kingdom-Mexico Bilateral Investment Treaty ("BIT").
The Request concerns the purported revocation of the mining concessions for the Sonora Lithium Project (the "Project") by the Mexican General Directorate of Mines as announced by Cadence on 31 August 2023, and related acts and omissions by Mexico. The affected concessions include those granted to Mexilit S.A. de CV ("Mexilit") and Minera Megalit S.A. de CV ("Megalit"), these being joint venture companies in which Cadence holds a 30% stake through REMML.
In their Request, Cadence and REMML have identified various BIT obligations that have been breached by Mexico, including Mexico's obligation not to unlawfully expropriate the investments of UK investors such as Cadence and REMML and its obligation to treat such investments fairly and equitably.
Ganfeng's dispute agreement:
https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/759/download
The agreement Cadence minerals are disputing:
https://assets.publishing.service.gov.uk/media/5a74ba5ae5274a3cb2866b4c/6860.pdf
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428233803936219
Yes MS, Sonora is just an option for TRR at the moment. Personally I've written off the chances of that coming to fruition, so if it does that'll be an exceptional bonus for Trident.
Excellent presentation from Adam on the IMC platform - the video is linked below.
https://youtu.be/UxbFMiVS7vI?si=vmME7cfPkAxkslGe
Regarding Sonora Lithium. TRR has only paid a $2 Million refundable deposit for option to buy Royalty etc. TRR has option to go forward with investment at any time up till 2025 , or can decide to withdraw from deal at any time up till 2025 at no financial cost + TRR gets $2 Million deposit back. TRR management protected the company and its cash on this potential project because it is in Mexico,with new Government. Hope it advances but if not TRR does not lose any cash. I like the other great Lithium assets TRR has in USA. 1 of which is in construction , also is a tier 1 company.
Sonora Lithium Investment Update
Request for treaty negotiations with Mexico
Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the United Kingdom-Mexico Bilateral Investment Treaty ("BIT").
The Request concerns the purported revocation of the mining concessions for the Sonora Lithium Project (the "Project") by the Mexican General Directorate of Mines as announced by Cadence on 31 August 2023, and related acts and omissions by Mexico. The affected concessions include those granted to Mexilit S.A. de CV ("Mexilit") and Minera Megalit S.A. de CV ("Megalit"), these being joint venture companies in which Cadence holds a 30% stake through REMML.
In their Request, Cadence and REMML have identified various BIT obligations that have been breached by Mexico, including Mexico's obligation not to unlawfully expropriate the investments of UK investors such as Cadence and REMML and its obligation to treat such investments fairly and equitably.
In accordance with Article 10 of the BIT, Cadence and REMML have requested consultations and negotiations with Mexico with a view to resolving the dispute amicably. The BIT provides for disputes to be resolved by international arbitration if they cannot be resolved by consultation and negotiation.
Cadence and REMML have engaged leading international law firm Clifford Chance as counsel for the BIT process. The Clifford Chance team representing Cadence and REMML specialise in mining-related investment treaty arbitration cases.
Cadence CEO Kiran Morzaria commented: "The team at Clifford Chance have many years of experience in mining-related investment treaty arbitration, and have successfully resolved similar cases in the past. With their guidance, we are hopeful that a constructive solution can be reached through consultations and negotiations with Mexico under the BIT. "
IMO only. No. The workforce at the mine is apparently 100% Mexican. Avino operates the Avino silver mine and mill 19km from their in construction La Preciosa silver mine. Avino silver mine and mill is already producing concentrates which are sold to Samsung C&T U.K. Ltd. Avino intends to begin processing stockpiled material from La Preciosa in late H2 2023 at its mill, before commencing production from fresh ore in 2024.
The Royalty Assets comprise:
1.25% net smelter return royalty (the "NSR Royalty") covering the Gloria and Abundancia veins;
2.00% gross value return royalty (the "GVR Royalty") covering all other areas of La Preciosa; and
US$8.75 million milestone payment (the "Milestone Payment"), payable within 12 months of first silver production at La Preciosa.
Anyone else on the live Investor Meet just now?
Interesting graph on how successful Franco Nevada have been in the gold market.
TRR focus is different in that they are focussing on diversified royalties; Precious, Industrial and the "green" battery markets.
60% of the NAV is in Tier1 jurisdictions Canada, USA & Australia so low risk.
41% Lithium
32% Gold
19% Copper
6% Silver
2% Iron ore
Https://www.mining.com/web/exxon-to-start-lithium-production-for-evs-in-the-us-by-2027/
Is this at risk of government interference/nationalisation i wonder?
Victoria Gold Offtake
Trident owns an offtake for 25% of the gold produced at Victoria Gold’s Eagle Gold Mine up to 1,111,500 million delivered ounces.
Victoria Gold reports Q3 net income of C$5.6 million, reaffirms 2023 guidance.
https://www.kitco.com/news/2023-11-10/Victoria-Gold-reports-Q3-net-income-of-C-5-6-million-reaffirms-2023-guidance.html?sitetype=fullsite
Https://www.mining.com/web/ganfeng-open-to-mexico-venture-on-canceled-lithium-mine/
Avino Silver and Gold Mines Ltd. La Preciosa IS one of the largest undeveloped primary silver resources in Mexico. The mine is in construction.
Avino Silver and Gold Mines acquired La Preciosa from Coeur Mining in March 2022 with the intention to rapidly develop the Project as a satellite mine to Avino’s current operation, located 19km away. La Preciosa features prominently in Avino’s five-year plan and the company is targeting the commencement of production in 2024. The first phase of mine development will require technical equipment and materials that will be funded by growth capital.
Avino intends to ramp annual silver production from La Preciosa to circa 3 million ounces (“Moz”) by 2027, increasing to 3.5Moz in 2028 With a current total Mineral Resource estimate of 120Moz of silver and 224,000 ounces of gold, La Preciosa is expected to be a long-life asset with further expansion potential.
Trident owns a 1.25% net smelter return royalty ('NSR Royalty') and 2.00% gross value return royalty ('GVR Royalty') over the La Preciosa Silver-Gold Project in Mexico, which is operated by Avino Silver and Gold Mines. Trident is also entitled to a milestone payment of US$8.75 million within 12 months of first production. https://avino.com/operations/lapreciosa/
Paradox Basin Royalty
Trident owns a 2.50% NSR Royalty over any projects owned by Anson Resources within the Paradox Basin in the USA. The Royalty is tied to Anson’s ownership of the projects, and Trident is entitled to 2.00% of net proceeds from the sale by Anson of any projects in the Paradox Basin (with the Royalty terminating at that point).
Paradox Lithium Project.
The Paradox Paradox Basin Royalty
Trident owns a 2.50% NSR Royalty over any projects owned by Anson Resources within the Paradox Basin in the USA. The Royalty is tied to Anson’s ownership of the projects, and Trident is entitled to 2.00% of net proceeds from the sale by Anson of any projects in the Paradox Basin (with the Royalty terminating at that point).
Paradox Lithium Project
The Paradox Lithium Project, located in the Paradox Basin in Utah, USA, is Anson Resources’ flagship project. Anson released a Definitive Feasibility Study for Paradox in September 2022 outlining a Phase 1 operation, producing an initial 13,074 tonnes per annum of Lithium Carbonate (Li2CO3) for the first 10 years of a 23-year operation. Anson has appointed global engineering firm Worley Group Inc. for the Front-End Engineering and Design Study for the proposed lithium carbonate processing plant, which is expected to be completed in Q4 2023.
Trident has a 2.50% NSR Royalty over any projects owned by Anson Resources within the Paradox Basin in the USA. The Royalty is tied to Anson’s ownership of the projects, and Trident is entitled to 2.00% of net proceeds from the sale by Anson of any projects in the Paradox Basin (with the Royalty terminating at that point)., located in the Paradox Basin in Utah, USA, is Anson Resources’ flagship project. Anson released a Definitive Feasibility Study for Paradox in September 2022 outlining a Phase 1 operation, producing an initial 13,074 tones per annum of Lithium Carbonate (Li2CO3) for the first 10 years of a 23-year operation. Anson has appointed global engineering firm Worley Group Inc. for the Front-End Engineering and Design Study for the proposed lithium carbonate processing plant, which is expected to be completed in Q4 2023.
Trident has a 2.50% NSR Royalty over any projects owned by Anson Resources within the Paradox Basin in the USA. The Royalty is tied to Anson’s ownership of the projects, and Trident is entitled to 2.00% of net proceeds from the sale by Anson of any projects in the Paradox Basin (with the Royalty terminating at that point). https://www.ansonresources.com/paradox_lithium_project/
Trident owns a 0.90% net smelter return royalty (‘NSR Royalty’) over the Antler Copper Project, operated by New World Resources, located in Arizona, USA. Trident owns a 0.90% NSR royalty over the tenement package owned by New World at the time of the transaction, which covers the copper rich polymetallic Antler Project and five named exploration targets. Trident also holds a 0.45% NSR royalty over any ground subsequently acquired by New World within 5km of the boundary of the project area royalty. The royalty contains two buyback provisions which allow for cashflow to be pulled forward, whilst allowing Trident to retain meaningful ongoing exposure to the project and exploration success. Furthermore, Trident has been granted a Right of First Refusal providing Trident the right to match any new royalty or streaming transaction until 12 months after commercial production at Antler. hThe royalty contains two buyback provisions which allow for cashflow to be pulled forward, whilst allowing Trident to retain meaningful ongoing exposure to the project and exploration success. Furthermore, Trident has been granted a Right of First Refusal providing Trident the right to match any new royalty or streaming transaction until 12 months after commercial production at Antler. https://www.youtube.com/watch?v=hOBvgsU_24c
Nevada USA.. Thacker Pass Lithium Royalty
Trident owns a 60% interest in a 1.75% gross revenue royalty (1.05% net to Trident) over the Thacker Pass Lithium Project, one of the largest known lithium resources in North America. The project is 100% owned and operated by Lithium Americas Corp.The royalty provides Trident with attractive exposure to the growing lithium market, the demand for which is growing as a result in increasing demand for rechargeable batteries driven by the uptake in electric vehicles.
https://lithiumamericas.com/thacker-pass/overview/default.aspx
Sonora Lithium Royalty..1st September 2023. Adam Davidson, Chief Executive Officer of Trident commented:
"Trident is disappointed by the recent developments in Mexico announced by Ganfeng, Which add risk to the transaction in addition to the ongoing litigation in Alberta, whereby the validity of the royalty is being challenged. We were Cognizant of these risks at the time of the original transaction and Structured the deal accordingly to protect against both political and litigation risk, such that we may recover our initial $2.5 million secured loan.
Ganfeng indefinitely postpones Mexican lithium target date amid gov’t spat
https://www.mining.com/web/chinas-ganfeng-indefinitely-postpones-mexican-lithium-target-date-amid-govt-spat/
Adam Davidson, Chief Executive Officer of Trident commented:
"At the end of last year, we indicated that the market for royalties was becoming more active as projects looked for funding outside of traditional equity and debt markets. That has proven to be the case, with Antler marking our fifth transaction this year.
"This is a highly attractive royalty. The commodity mix complements our existing portfolio, with future-facing base metals to sit alongside our lithium, precious metals, and existing base metals exposure. The location and management of the asset are both excellent and we expect the royalty to deliver significant value for Trident shareholders."
I-80 Gold Offtake
Trident owns an offtake for a fixed number of ounces of gold produced from i-80’s Ruby Hill, McCoy Cove & Granite Creek. Trident is entitled to delivery of 37,500 oz of gold per annum in 2022 - 2023, with 40,000 oz per annum due between 2024 – 2028.
Victoria Gold Offtake
Trident owns an offtake for 25% of the gold produced at Victoria Gold’s Eagle Gold Mine up to 1,111,500 million delivered ounces.
The Eagle Gold Mine is Largest. Gold Mine in Yukon History.
https://vgcx.com/production/eagle-gold-mine/overview/
Blyvoor Gold Offtake
Trident owns an offtake for 100% of the gold produced, less any applicable streams, at Blyvoor Gold’s Blyvoor Gold Mine up to 2,700,000 million delivered ounces.
Blyvoor Gold is a South African gold mining company operating the Blyvoor mine on Johannesburg’s West Rand.
https://blyvoorgold.com/