Interview with Luis Azevedo, Chairman & CEO of Bravo Mining Corp.
Our previous interview: https://www.cruxinvestor.com/posts/bravo-mining-tsxvbrvo-strategy-successes-in-unlocking-value-in-brazils-luanga-project-3695
Recording date: 21st November 2023
Rapid Progress Positions Bravo Mining to Capitalize on Impending PGM Supply Crunch
Bravo Mining has rapidly advanced its Tier One Luanga PGM project in Brazil since the company's IPO 15 months ago. Located in mining-friendly Brazil, the project stands to benefit from low energy and operating costs. The company discovered high-grade nickel mineralization on the property and is focused on scale, low costs, and optionality.
In the 15 months since going public, Bravo increased its mineral resource estimate from 5.5M oz to over 10M oz PGM. This came from an aggressive 45,000-meter drill program that expanded the deposit at depth.
The project requires only a $4M grid power connection to meet needs, with electricity at $0.025 per kWh. Extensive metallurgical test work has de-risked potential recoveries. The existing open pit project shows potential for low-cost production at scale.
Timing is Key
PGM supply is concentrated in South Africa and Russia. Aging South African mines are closing rapidly as the country faces power constraints. Meanwhile, auto demand is only transitioning slowly from internal combustion engines to EVs.
Azevedo sees the impending supply declines supporting prices: "The price cannot support this situation today." With hybrid vehicle growth still requiring substantial PGMs, Bravo is working to capitalize on this pending supply crunch. By targeting 2025 production, it aims to hit the market ahead of peak mine closures.
Additional Upside
Beyond its 10M oz PGM deposit, Bravo discovered high-grade nickel mineralization on the property. Surface trenching also revealed potential low cost gold production from oxidized material. The asset offers commodity leverage and production upside.
Proven Mine Builders
Azevedo notes his team built a $45M 1M ton plant for a planned $120M budget previously. The tight ownership structure of 52% management and 45% institutions ensures alignment. The focus is on value delivery over dilution.
Key Takeaways:
For investors seeking PGM exposure, Bravo Mining offers a unique combination of supply/demand dynamics meets world-class deposit meets proven operators. The team has skillfully executed exploration and development since IPO, expanding resources by 83%. Their location, existing infrastructure, scale and mine plan position the project in the lowest global quartile by costs. Commodity leverage meets production upside equals value creation.
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View Bravo Mining's company profile: https://www.cruxinvestor.com/companies/bravo-mining
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What is Company Interviews?
An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.