Jacob Sekelsky

Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global Partners, asked about the progress related to the ramp-up of the $30 million EPA cleanup agreement.

Answer

Ryan Melsert, CEO and CTO of American Battery Technology Company, explained that the agreement refers to the Moss Landing project in Northern California. He stated that material from this facility has been received since the end of summer, representing a substantial portion of the factory's feed, and the company is on pace to receive substantially more material.

Jake Sekelsky asked about the progress related to the ramp-up of the $30 million EPA cleanup agreement, specifically concerning the Moss Landing project.

Answer

CEO and CTO Ryan Melsert explained that material from the Moss Landing project has been received since the end of summer, representing a substantial portion of the factory's feed, alongside other sources from stationary, automotive, and consumer electronics markets. He confirmed they are on pace to receive substantially more material.

Jake Sekelsky asked about the water purchase agreement (WPA) model, specifically the types of customers showing interest and whether AirJoule would own and operate the systems under this structure.

Answer

Chief Commercialization Officer Bryan Barton confirmed AirJoule would own and operate WPA systems, targeting customers in water-stressed areas needing clean water. Executive Chairman Pat Eilers highlighted the accretive nature of WPAs due to long-term offtake agreements with investment-grade customers. CEO Matt Jore emphasized the long-term revenue potential and control over operations.

Jake Sekelsky asked about the Water Purchase Agreement (WPA) model, specifically inquiring about the types of customers showing interest and whether AirJoule would own and operate systems under this model.

Answer

Chief Commercialization Officer Bryan Barton confirmed that AirJoule would own and operate WPA systems, targeting customers in water-stressed areas who lack access to affordable, high-quality municipal water or groundwater. Executive Chairman Pat Eilers added that WPAs are accretive due to long-term offtake agreements with investment-grade customers. CEO Matt Jore emphasized the benefit of controlling operations and data over a 15-year asset life.

Jake Sekelsky of Alliance Global Partners asked for additional details on the memorandum of understanding (MOU) with a hyperscale data center developer and questioned how the company is managing potential supply chain impacts from tariffs.

Answer

Executive Chairman Pat Eilers described the hyperscaler MOU as a near-term opportunity, noting that the waste heat from data centers is a direct input for AirJoule's technology to produce cooling water. Founder and CEO Matt Jore addressed tariffs, stating that the company currently has flexibility to source components from various suppliers, including domestic options, and has not yet locked in pricing, which mitigates immediate risk.

Jake Sekelsky of Alliance Global Partners asked for more details on the memorandum of understanding (MOU) with a hyperscale data center developer and inquired about how the company is managing potential tariff impacts on equipment sourcing.

Answer

Executive Chairman Pat Eilers stated the hyperscaler MOU represents a near-term opportunity, ideally within a year, to use waste heat from compute to generate cooling water. On tariffs, Founder and CEO Matt Jore assured that the company has flexibility as it has not yet locked in vendors for its 2026 commercialization. He noted they are evaluating multiple suppliers, including domestic options for key components like sorbents, to mitigate supply chain risks.

Jake Sekelsky from Alliance Global Partners inquired about the necessary steps and timeline to advance from the Pre-Feasibility Study (PFS) to a full Feasibility Study, and the key upcoming permitting milestones with NOAA.

Answer

CFO Craig Shesky explained that the immediate focus is finalizing the agreement with partner Allseas to enable a final investment decision on long-lead items for the Q4 2027 production target. Chairman and CEO Gerard Barron added that key upcoming milestones include the adoption of amended regulations to fast-track permitting, noting the strong support from NOAA and the US administration to advance the project.

Jacob Sekelsky asked how the recent wave of government support might impact the onshore processing side of the business and whether TMC has long-term plans to move downstream.

Answer

Chairman and CEO Gerard Barron confirmed that TMC is actively evaluating U.S.-based processing, citing DSHMRA's preference for domestic operations and inbound interest from "Patriot capital providers." Executive Craig Shesky reinforced that any downstream move would be assessed for shareholder value (IRR, ROIC) and that the immediate focus remains a capital-light approach, leveraging partners until a commercial recovery permit is secured.

Jacob Sekelsky of Alliance Global Partners sought to confirm if the NOAA process represents a complete shift from the ISA pathway or a parallel strategy, and asked about key milestones, timelines for the new process, and its impact on the upcoming economic study.

Answer

CFO Craig Shesky clarified that the NOAA path is a new, advantageous, and incremental path forward, not a replacement for the ISA process, and was pursued due to a shift in U.S. political appetite. CEO Gerard Barron added that while a timeline is understood internally, details will be shared after further consultation with NOAA. Shesky confirmed the economic study is still expected to be completed in advance of the U.S. application submission in June.

Jacob Sekelsky of Alliance Global Partners asked for additional details on the $9 million government funding application for domestic refining, inquiring about the progress of the application and if potential sites had been identified.

Answer

Executive Craig Shesky confirmed that potential sites have been identified and the application is well-advanced, having been submitted nearly nine months ago. He positioned the grant as more valuable for the explicit U.S. government support it represents, which builds investor confidence, rather than just its monetary value, calling it an opportunistic but not essential development.

Jake Sekelsky of Alliance Global Partners asked about the potential for co-firing the Merum generating station with natural gas and questioned whether the company plans to release specific economic details on the project in the coming quarters.

Answer

President, CEO & Chairman, Brent Bilsland explained that the decision to proceed with the natural gas co-firing project is entirely dependent on the requirements of the ultimate long-term PPA counterparty. He stated that while the project is feasible, with a pipeline nearby, the company will not release specific cost estimates until it becomes a more actionable item. This is to avoid providing potentially misleading information, as costs would change if the project were delayed.

Jake Sekelsky of Alliance Global Partners questioned whether Hallador would release specific economic details for the potential natural gas co-firing project at its Merom generating station in the near future.

Answer

President & CEO Brent Bilsland explained that the company will not release cost estimates for the co-firing project at this time. He stated that the decision to proceed and the associated economics are entirely dependent on the final terms and customer requirements of a future long-term PPA, making any current figures premature and potentially misleading.

Jake Sekelsky of Alliance Global Partners questioned the timing and disclosure of the economics for the potential natural gas co-firing opportunity at the Merum generating station, asking if it was currently just an internal exercise.

Answer

President and CEO Brent Bilsland explained that the decision to proceed with the co-firing project and its associated economics are contingent on the requirements of the ultimate long-term PPA counterparty. He stated that while the project is feasible, the company will not release specific cost details until it becomes a more actionable item to avoid providing potentially misleading information.

Jake Sekelsky asked about the potential for co-firing the Merom plant with natural gas and whether the company plans to release specific economic details about the project in the coming quarters.

Answer

President and CEO Brent Bilsland clarified that the decision to proceed with the co-firing project is contingent on the requirements of the ultimate long-term PPA partner. He stated that while preliminary feasibility and cost work has been done, the company will not release specific economic figures until the project becomes more actionable to avoid providing potentially outdated or misleading information.

Jacob Sekelsky of Alliance Global Partners inquired about potential strategies to accelerate development at the La Preciosa project and any plans to expand exploration programs, given Avino's strong balance sheet.

Answer

President and CEO David Wolfin confirmed that the company is actively exploring ways to accelerate development, including increasing the pace of ramp development and potentially adding another portal at La Preciosa. He also stated that exploration drilling is ongoing at the ET mine and that the company intends to expand drilling at La Preciosa once equipment is upgraded.

Jacob Sekelsky of Alliance Global Partners questioned the sustainability of the lower Q4 costs into 2025 and asked for more detail on the La Preciosa ramp-up timeline.

Answer

CFO Nathan Harte responded that cost per tonne is expected to remain level, while all-in sustaining costs per ounce are targeted to be similar to or slightly lower than the 2024 annual figure. He added that while the goal is to process La Preciosa ore in Q4 2025, the company may stockpile material to ensure a full-capacity start in early 2026.

Jacob Sekelsky of Alliance Global Partners inquired about the plan for processing La Preciosa stockpiles in the second half of 2024, the remaining tonnage, and the potential production ramp-up schedule for the La Preciosa underground mine.

Answer

Peter Latta, VP of Technical Services, confirmed that stockpile processing will continue in the second half with approximately 5,000 tonnes remaining. He stated that while various ramp-up scenarios exist for the underground mine, the immediate focus is on securing permits, after which more detailed plans will be shared.

Jake Sekelsky from Alliance Global Partners asked how stabilized costs and higher metal prices might influence the company's exploration budget and inquired about the status of mill modifications needed to process the La Preciosa stockpiles.

Answer

CFO Nathan Harte explained that the company's primary focus for capital remains on advancing the La Preciosa project, rather than expanding the general exploration budget. Regarding the mill, an executive, with confirmation from CEO David Wolfin, stated that the necessary modifications were completed in Q1 and that processing of the La Preciosa stockpiles is already underway in Q2.

Jacob Sekelsky from Alliance Global Partners asked if the four-year, $89 million growth CapEx plan assumes a self-funding strategy and if this timeline could be accelerated with external financing. He also sought clarification on whether the underground mining operations are included in the existing special mining license.

Answer

Stephen Mullowney (executive) confirmed that the expansion timeline could be accelerated with external funding, but this would involve a trade-off with an increased risk profile. He noted that some initial work has already commenced. He also affirmed that the company's special mining license does cover underground operations, although some ancillary permits would still be required.

Jacob Sekelsky inquired about the critical path for extending the mine life at Gold Bar via the Timberline properties, the future strategy for the company's royalty portfolio, and whether high gold prices are prompting a re-evaluation of near-term mine plans.

Answer

Chief Operating Officer William Shaver detailed the permitting timeline for Timberline, noting it could be 3-5 years for BLM land, with applications starting soon. Executive Robert McEwen confirmed the company is considering both expanding and monetizing its royalty portfolio. William Shaver added that the company is actively working to increase production at Gold Bar and Timmins to capitalize on higher gold prices.

Jacob Sekelsky of Alliance Global Partners inquired about future production levels at Gold Bar, the permitting timeline for the Timberline acquisition, and the status of development work at the Fox Complex.

Answer

Executive William Shaver clarified that Gold Bar's 2025 production will be similar to 2024 due to stripping activities. Executive Stefan Spears detailed a multi-year, phased permitting process for Timberline, with initial production projected for 2027. William Shaver also updated on the Fox Complex, noting that ramp excavation permits are being finalized, with the Stock operation expected to be online in Q3/Q4 of the next year to help reach a target of 100,000 ounces per year by 2028.

Jacob Sekelsky of Alliance Global Partners inquired about the sustainability of Gold Bar's recent high production levels, the permitting timeline for the newly acquired Timberline property, and the status of development work at the Fox Complex.

Answer

Executive William Shaver clarified that Gold Bar's 2025 gold production is expected to be in line with the current year, as increased material movement is focused on waste stripping. Executive Stefan Spears outlined a phased permitting process for Timberline, projecting the earliest production around 2027. William Shaver also detailed development at the Fox Complex, noting they are in the final stages of permitting for a new ramp and targeting operations in Q3/Q4 of the next year to support a goal of approximately 100,000 ounces per year by 2028.

Jacob Sekelsky inquired about the operational impact of heavy rains on Q2 throughput and whether the unprocessed material would benefit Q3. He also asked for an update on the company's foreign exchange hedging strategy for the Mexican peso.

Answer

President and CEO Allen Palmiere explained that two tropical depressions in June turned ore fines to mud, plugging crusher screens and halting throughput, but he does not expect this to impact Q3 or Q4. Regarding currency, Palmiere stated that while Gold Resource Corp is not currently hedged, the Board is now seriously considering putting peso hedges in place to capitalize on the peso's recent devaluation, which significantly lowers operating costs.

Inquired about the potential to target more precious metal-rich areas given high gold and silver prices, and asked about the company's hedging strategies for base metals and the Mexican peso.

Answer

The executive responded that the 2024 mine plan is largely inflexible, but they anticipate mining areas with higher precious metal grades in 2025. Regarding hedging, they do not hedge precious metals to maintain upside exposure for shareholders. They would consider hedging zinc if prices rise further. They are not currently hedging the peso as it would lock in an unfavorable rate, but might do so if it weakens to around MXN 18 later in the year, noting its current strength is due to the interest rate carry trade.

Jacob Sekelsky asked if recent strength in gold and silver prices has created opportunities to target more precious metal-rich areas or altered the company's cutoff grade strategy. He also inquired about the company's hedging strategies for base metals and the Mexican peso.

Answer

President and CEO Allen Palmiere responded that the 2024 mine plan is relatively inflexible, limiting the ability to immediately target higher precious metal grades. However, he anticipates that exploration results from areas like Marena and Three Sisters will lead to mining higher-grade material in 2025. Regarding hedging, Palmiere stated the company avoids hedging precious metals to provide shareholders with upside exposure. For base metals, they would consider hedging zinc if prices continue to rise. He explained that they are not currently hedging the volatile Mexican peso, as they expect it to soften from its current strength, which is supported by a high-interest-rate carry trade. They would only consider hedging if the exchange rate weakened to around MXN 18 to the dollar.

Jacob Sekelsky of Alliance Global Partners inquired about the increase in finished goods inventory, asking if it was a strategic decision to withhold ounces for higher prices or simply a matter of timing. He also asked if the Mexican peso had weakened enough for the company to consider implementing broader foreign exchange hedges.

Answer

CEO Dan Dickson confirmed that the inventory build was purely a function of shipment timing and that the company is not holding back sales, especially while funding the Terronera project. Regarding the peso, Dickson stated that while he anticipates further weakness, Endeavour has no current plans for additional FX hedges beyond those required by their debt facility for Terronera.

Jacob Sekelsky of Alliance Global Partners followed up on hedging, asking if the company would consider hedging additional gold production beyond what is required for the Terronera facility. He also asked about the labor outlook at Terronera.

Answer

CEO Dan Dickson reiterated that the company is not considering additional gold hedges at this time, as management sees more runway in the precious metals space and the existing hedge provides sufficient downside protection. On the labor front, he stated that the mining team is handled internally and key plant operations staff have already been hired. He does not anticipate a significant hiring challenge leading up to the Q4 commissioning.

Jake Sekelsky from Alliance Global Partners inquired about the drivers behind the quarter-over-quarter decrease in costs, given the inflationary environment. He also asked if volatility in metals prices has impacted the timeline for test work at the Velardeña project.

Answer

President & CEO Warren Rehn and COO John Galassini explained that the cost decrease was due to pre-blasting activities in Q2, smoother operations, and successfully offsetting higher commodity prices by improving plant efficiency and reducing reagent consumption. Regarding Velardeña, Mr. Rehn confirmed that while price volatility is a concern, the company is still pushing forward with testing to resolve dilution issues.

Jacob Sekelsky of Alliance Global Partners inquired about the remaining mine life at the Rodeo project, the importance of the San Mateo vein to the Velardena mine plan following dilution issues, and the company's confidence in the CapEx estimates for the Velardena restart amid cost inflation.

Answer

President and CEO Warren Rehn explained that Rodeo's higher-grade material is expected to last into October 2023, with potential for two more years of production from lower-grade material. Rehn and COO John Galassini clarified that while the San Mateo vein is significant, the dilution issue was localized due to a specific geologic feature. Regarding CapEx, Rehn stated that the Velardena restart cost is still tracking in line with the $16 million estimate, though final detailed bids are pending.

Jacob Sekelsky of Alliance Global Partners inquired about the timeline for test mining results at the Velardeña project, the required metal prices to restart mining activities there, and the exploration plans for the remainder of the year at both the Rodeo and Yoquivo properties, including the potential for further mine life extension at Rodeo.

Answer

President and CEO Warren Rehn stated that Velardeña test mining results are expected by the end of June or early Q3. He indicated that a sustained silver price over $25 per ounce would be necessary to consider restarting mining before the BIOX plant is operational. Regarding exploration, Rehn mentioned that additional drilling at Rodeo could incrementally extend the mine life by another quarter or two, and the ongoing program at Yoquivo is aimed at defining an initial mineral resource.

Jacob Sekelsky of Alliance Global Partners asked for clarification on the timeline for the Velardena project's feasibility-level results and a potential production decision, and also inquired whether positive Rodeo exploration results would lead to a formal or internal mine plan update.

Answer

President, CEO & Director Warren Rehn explained that feasibility-level work on the Velardena BIOX process should be available in Q1 2022, allowing for a decision in the first half of the year. For Rodeo, he stated the update would likely be internal due to cost, but the information would be included in the SK-1300 technical report summary early next year.