Junior Mining Red Flags, a New Zinc Discovery, and Some Nickel | Prismo, Group Eleven, Fathom Nickel
Alain Lambert, CEO of Prismo Metals, and a +35-year venture capital veteran talked to me about junior mining management & board red flags, how he deals with geology as a non-geo, and what his does with his own money. Prismo Metals is a paying advertiser on this channel.
More specifically, in this episode, Alain and I discussed the challenges of evaluating senior management in the junior mining industry. Alain, with his extensive experience in the market since 1987, advised me on the importance of adaptability, learning, and having a balance between technical and capital market professionals across the board of directors of junior mining companies.
He further suggested that retail investors should assess the team's track record, communication skills, and past projects, using various resources such as friends, brokers, etc.
We also talked about what appropriate compensation packages look like, and how much is "too much" when it comes down to management compensation.
Alain and I then touched upon the financing market for juniors, and what makes a good vs a bad financing.
Furthermore, the discussion included some tips for understanding share structures, looking at rocks, and figuring out how to deal with the information flow which can, at times, be rather scarce in junior mining.
This video also included a;
1. Group Eleven Resources CEO interview with Bart Jaworski. Group Eleven Resources Corp. (TSX.V: ZNG; OTCBB: GRLVF and FRA: 3GE) is a mineral exploration company focused on advanced stage zinc exploration in the Republic of Ireland. Group Eleven announced the Ballywire discovery in September 2022. Key intercepts to date include: (i) 3.3m of 12.5% Zn+Pb and 48 g/t Ag (G11-468-01), (ii) 10.8m of 10.0% Zn+Pb and 109 g/t Ag (G11-468-03); (iii) 10.1m of 8.6% Zn+Pb and 46 g/t Ag (G11-468-06); (iv) 10.5m of 14.7% Zn+Pb, 399 g/t Ag and 0.31% Cu (G11-468-12) and (v) 11.2m of 8.9% Zn+Pb and 83 g/t Ag (G11-3552-03). The Company’s two largest shareholders are Glencore Canada Corp. (18.2% interest) and Michael Gentile (15.0%).
Group Eleven's Resources' website: https://groupelevenresources.com/
2. Fathom Nickel CEO interview with Ian Fraser. Fathom Nickel (CSE: FNI) is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market.
The Company now has a portfolio of two high-quality exploration projects located in the prolific Trans Hudson Corridor in Saskatchewan:
1) the Albert Lake Project, a 90,000+ hectare project that was host
to the historic and past producing Rottenstone deposit (produced high-grade Ni-Cu+PGE, 1965-1969),
2) the 22,000+ hectare Gochager Lake Project that is host to a historic, NI43-101 non-compliant
open pit resource consisting of 4.3M tons at 0.295% Ni and 0.081% Cu.
Fathom Nickel's website: https://fathomnickel.com/
Important warning:
THIS VIDEO SHOULD BE TREATED AS AN ADVERTISEMENT FOR THE COMPANIES, SOME OF WHICH HAVE PAID FOR THE PRODUCTION OF SAID ADVERTISEMENT. NO QUESTIONS WERE EXCHANGED, AND NOBODY SAW THIS PRIOR TO ITS PUBLICATION.
The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The viewer acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy.
The host is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn't know much more than a potato does.
The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don't read the official documents provided by the company on www.SedarPlus.ca, you will lose all of your money.
Timestamps
00:00 recap
00:58 intro
02:45 how do I analyse a management team?
05:45 does the board of directors matter?
09:28 should the board have geos on it?
11:30 is it okay for the CEO to also be on the board?
12:25 how many boards can one person be on?
14:25 is it okay for the CEO to be CEO of 2 companies?
15:45 what does a board member even do?
20:08 is $50K too high of a paycheck for board members?
22:10 how much money should CEOs make?
26:50 how much money will Alain & his team make this year?
29:40 what is an example of a company that overspends?
35:40 what is a good vs a bad financing?
40:38 is asset-level dilution better than equity raises?
43:30 what % should the junior keep in a JV with a major?
47:25 are shareholders also the receiving end of the joke?
52:55 when is management really "aligned" with investors?
56:20 how does a non-geo deal with the geology?
01:08:00 what's the biggest takeaway here?
01:13:45 Group Eleven Resources company overview
01:21:00 Group Eleven Resources CEO interview
02:22:45 Fathom Nickel company overview
02:29:25 Fathom Nickel CEO interview
