Interview with Frank Basa, President & CEO of Coniagas Battery Materials Inc.
Recording date: 6th June 2024
Coniagas Battery Metals (TSXV:COS) is a newly listed junior explorer spinning out of a previous company to focus on nickel, copper, cobalt and PGMs in Quebec, Canada. With a tight share structure, experienced management team, and promising early-stage exploration results, the company offers speculative exposure to the high-demand battery metals space.
Coniagas' key asset saw 17,000 meters of drilling outlining potential for a significant 30-60 million tonne high-grade copper resource, though not yet 43-101 compliant. Early drill intercepts include 30 meters of 2.6% copper equivalent, showcasing the potential for an economic discovery. The mineralization remains open for expansion along strike and at depth.
Management is particularly excited about the potential for a deeper Graal zone to host even higher grades over wider intervals. CEO Frank Basa likens the Graal zone to a "martini glass" shape that could deliver pretty results. Additional major drill campaign is set to begin in the next 2-3 months to test this deeper target and expand the known mineralization.
Despite the prospective geology and upcoming catalysts, Coniagas trades at a significant discount to peers. At a $3.5 million market cap, the company is valued far below neighboring companies like Power Nickel at $116 million.
The company has 5.2 million of its 30 million shares free trading, with the rest held in escrow to be released over three years.
The company also operates with a lean corporate structure, with management owning significant skin in the game through stock options. As Basa puts it, "the reality is for exploration and all the money goes on the ground."
The company's main asset is still at an early stage, while metallurgy, permitting, and capital costs are also uncertain at this point. Like any junior explorer, Coniagas will rely on continued access to capital markets to fund its activities.
The company is poised to kick off an ambitious drill campaign in a top jurisdiction, backstopped by a tight share structure and experienced management team. If the drills start turning up high-grade nickel and copper, Coniagas shareholders could be well-rewarded.
In a world rapidly shifting to electric vehicles and clean energy, new supplies of battery metals are desperately needed.
View Coniagas Battery Metals' company profile: https://www.cruxinvestor.com/companies/coniagas-battery-metals
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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.