More Money Printing Inevitable; This Asset Will Be ‘Explosive’ | Jon Deluce

More Money Printing Inevitable; This Asset Will Be ‘Explosive’ | Jon Deluce

what should we do if we were to have prudent economics we should keep rates High attack inflation head-on but that would create a deep recession in my a few with the carrying cost of debt whether that’s corporately government or personally so really what is the government going to do in my view they’re going to take the easy way out like they have for the last 25 years they’ll cut rates who knows maybe they start money printing again which is an inevitable but really the this inflation issue in my mind will just continue to get larger and larger a lot of hard Commodities have been rallying gold and base medals in particular we’re going to be talking about both copper and gold today the Outlook what the rally means for the global economy what a continued sustained rally May mean for inflation and ultimately where are these prices headed be talking also about the mining sector with our next guest John Delo he is the CEO of EPB medals welcome to the show John thank for having me David so it’s interesting how copper and gold have been moving in tandem over the last year and a half and especially in the last couple of months now they haven’t always moved together with a strong correlation historically sometimes it happens sometimes it doesn’t um copper as you know is a base metal so called it Dr copper is a has a close correlation where or predictive power of global economic growth while gold is seen as a store of value and a monetary metal it’s interesting how the these two have been moving together is there a broader narrative as to why a base metal and a monetary metal may be moving upwards together at the same time yeah well it’s a very it’s it’s a very unique time to be seeing that as you mentioned but I think the thing is and the theme for me is the effect of monetary debasement and the amount of money printing that we’ve seen over the past few years and the effects of 0% interest rates for such a long time so I think that theme is what is set the overall case for gold and copper but then you complement the specific demand case for each for each of the elements and like to summarize gold being a store of value it’s been uh a a a sound currency for thousands of years with no counterparty risk and that’s getting more and more important in today’s environment and then on the copper side the amount of use the use case deep carbonization um with EV and the infrastructure growth there’s there and the supply demand imbalances there so I think it’s really in my view we have the overall pressures of in of strong inflationary headwind uh supported by the specific demand case for both Metals which I think is very significant at the at the moment okay we will talk about the specific demand cases for both individually uh broadly speaking though if the base medals do continue to grind higher suppose they they do or even if copper just stays elevated at current prices um above 450 a pound what does this mean for inflation well I think inflation is here to stay I think that when you look at real inflation which I think is you talk to anyone in the community your friends and family and there’s a disconnect between published inflation and real inflation I think the Gap is growing on that metric so I think in terms of real inflation getting down to the 2% Fed rate I don’t think there’s any signs slowing down on that mandate especially with the FED now commenting on a pivot and interest rate policy towards the end of the year so I think that will fuel the next leg up leg and acceleration of inflation because we need to take a step back and really how have we gotten to where we are today and it’s the result of not accepting a recession a large recession for 25 years we have pushed uh and inflated larger and larger asset class and created Bubbles and we’re now landing on the biggest possible budget bubble in the debt market and treasuries and when you look at the cost of maintaining the debt in 2025 the interest rate the interest costs on the debt will exceed the defense budget in the US it’s very very significant so really the FED fed and where we’re at today is we have a choice are we going to accept High inflation or a deep recession and what I mean by by that is in terms of high inflation um the fed’s looking to cut rates and they H they’re having to do that because the carrying counts the carrying amounts of the debt but what should we do if we were to have prudent economics we should keep rates High attack inflation headon but that would create a deep recession in my f few with the carrying cost of debt whether that’s corporately government or personally so really what is the government going to do in my view the going to take the easy way out like they have for the last 25 years they’ll cut rates who knows maybe they start money printing again which is an inevitable but really the this inflation issue in my mind will just continue to get larger and larger but at the end of the day gold has been a monetary store of value forever and I think it’s why that gold and commodities will shine in this market but to sum to wrap that up I think inflation is here to stay okay so you think that it’s more likely that the FED will sacrifice the economy to combat inflation that that that’s your view what what would that mean for gold then if let’s say we have no recession but higher inflation even from today’s levels well I think that’s that that allows the carry the cost of government debt to be less that allows them to support election mandates and objectives but gold in that environment I think will be very explosive this is the we are at the cust of why I in my view people should be investing in gold it is to mitigate the misallocation of of currencies and the amount of what I would think is abuse that we’ve seen through money printing through pushing the can down the road is all coming to a conclusion right now and and and and I think people are realizing that and we’re going from an over Leverage and high inflationary environment and people are are rotating back to True stores of value and I think that that’s where g gold will continue to do very well because and we have thousands of years of History to support that being the case so really I think the drivers of gold and how it perform in this environment is obviously monetary debasement and there there there being no counterparty risk with gold I think you have to look at the brics countries the bricks countries have been stockpiling gold at record amounts and and and there’s it’s rumored that gold could be a part of a new currency that’s outl that’s brought out by the bricks Nations I it’s hard to see but there’s a reason why they’re stockpiling gold and and now we’re starting to see just the very start of the average individual starting to purchase gold as we’ve seen large sales at places like Costco so it’s good to see that people are starting to recognize the need again for gold I do think we’re still in the very early stages and I think that’s very exciting from my standpoint as an investor to be this early on a trade that I think is going to be very important Golds already run up more than 10% on the year currently at 2340 as we speak on the 23rd of April you don’t think that the price is already factored in this Narrative of higher inflation that you’re talking about well I think I think we’ve now broken to new all-time highs I think we look at Goldman at 2700 by end of the year City Bank at 3,000 we look at individuals like Pierre Lon that are looking at 10,000 plus dollar per ounce gold at some point I think taking a step back we look at a similar environment in the 70s and in a highly inflationary environment where gold went from $35 an ounce up to $ 850 over 20 around 25 times uh value increase and when we look at that I think that we could be at the very beginning of what is a very explosive gold market because all of the factors when you look at history and you look at the factors that have led to large moves in Gold I think that they’re all here today and I think it’s still very under the radar and people haven’t yet recognized that so I think sitting at $2,300 gold with the lack of attention that it’s getting the huge Tailwinds that we have behind the value case for gold and what we’re seeing the East do and countries across across the world stockpiling gold I think setting a clear message that there is risk in fiia currency right now and and and how do people hedge against that that’s gold so I think it’s I think we could be at the very start of a of a large move here copper as well so let’s move on to Copper the price of copper has gotone about 16% year to date now as I said in the introduction historically people have viewed copper as a sort of barometer on the global um grow both uh aspect or barometer on just the health of the economy overall it doesn’t always happen that way but just sometimes it does correlate with global growth right now though what is a 16% year-to-date growth on copper price what is that signaling to you well I think it’s it’s it’s a sign that we are starting to see the well I think it’s a sign it’s an inflationary sign I think it’s also the supply demand and balance that’s just starting to show a small deficit this year and is looking to expand to a quite a large deficit by 2030 with 4.7 million tons of of of of copper and shortages by that point I think it’s signaling that the day of copper prices having to go up in in response to inflationary pressures the supply demand imbalance is here so you look at you look at Chile for example so Chile one of the world’s largest copper producing countries is currently at a 25 year low in production so we have Supply weakening but also demand accelerating so over the next up until 2030 we’re going to see 35% growth in the demand side of the copper equation so I think that that 16% this year is a start I think we’re playing catchup with with the pricing being behind the supply demand equation and the imbalances that we have today that are going to accelerate so it’s it’s it’s a very positive environment in my view for copper okay we’re going to break down supply and demand you brought up that there’s a uh strong demand uh or future demand for coppera what is this case uh John what what is this demand uh um growth narrative that we’re expecting here yeah so the demand is coming from various various Avenues I think that it’s clear now that our economy individuals everybody is very reliant on copper and the inputs that it has but like looking at the diff breaking it down in we require massive um investment in in power infrastructure upgrades over the foreseeable future the US just announced $3.5 billion in electrical electric grid updates over over the foreseeable future there also the US has also mandated massive investment in clean energy and the overall decarbonization movement so and that’s that’s here to stay and you look at Shell did a shell did a study and 80% of terminal energy is currently being uh backed is carbon based and only 20% is based on electricity so to meet our goals of the decarbonization there’s a massive investment that needs to be made in Distribution Systems and a lot of that requires copper and you look at other uses like AI data centers AI is the the use and and investment in AI is exploding and the thing is is the data centers that they need to to create to to to facilitate that Network require massive amounts of copper so you look at and and the EVS connected to the decarbonization movement and just ener population and infrastructure growth so really there’s a lot of there’s a big demand case for copper and I think that with those factors in additional that it’ll only continue to increase so can you highlight some specific industries that you think will have the most use case for copper you you mentioned infrastructure spending so uh construction what else can we expect John well I think uh certainly construction that’s a big one that is really supports a lot of the other initiatives like when you think about the EV uh mandates that we have coming up people forget that you have all the infrastructure that goes into the condos and the houses to allow for these higher power charging stations and a lot of that requires copper so I think construction is a big and leading uh part of that demand and how that filters through through what I mentioned the the investments in EVS the aid data centers and just general infrastructure so as you mentioned I think I think construction is a big part of that okay um do you think that uh the supply shortage of copper could be rectified anytime soon by soon I mean within the next 5 to 10 years whether it be from government initiatives to drill or Explore More we from the private sector I I don’t believe so I think what’s going to help with that mandate is higher copper prices because higher copper prices will bring new mines online faster we’ll attract more Capital to the business but I think at today’s prices we are not going to have enough Supply to meet the shortages by 2030 we’re also combating the current production in terms of grade and production profile dropping off so it’s also the fact that current production is slowing part of it is because of an underinvestment in Exploration over the past 10 to 20 years with that filtering on off compared to historically and also a lack of new discoveries in the space I think uh the the easy discoveries and easy Minds have been found so this all adds to the the the case for for as of today with the factors that we have not being able to meet uh Supply demands by 2030 I’m just trying to understand how the supply equation could change if let’s say today or tomorrow the price goes up by double let’s just hypothetically assume that and then a lot of people are excited we’re going to get into the copper sector how long would it take for a mind to be built and be online well it’s a lot of time like the permitting process is very well it’s very slow um this you look at a tier one jurisdiction and a lot of times it would take 8 to 10 years by the time you make a decision to bring in a project online so these are not things that even if pricing even if copper pricing goes up tomorrow it’s not a quick fix unless there’s reasons and we have more government support and if copper becomes a strategic metal which I believe it could you look at the 50% of copper Supply today is is coming from countries with political instability so you look in like Panama for example that just had one of the world’s largest copper mines come offline and material and and that had an material input uh to co worldwide copper production so I think it’s it’s it’s also a matter of where the supply is coming from but I think that governments may be forced to Quicken the timeline of bringing a project to to production stage because of the need to have copper and also not I think in the future not being able to rely on getting Copper from certain countries that do have that in ability I just want to highlight to the viewers the importance of copper in our societies let’s just thought experiment here so suppose tomorrow all copper mines in the world shut down there’s zero copper production as of tomorrow what happens well I think that people will quickly realize how reliant on copper that we are it’s a huge component of all of our the whole electrification electricity process it goes into our phones goes into all of our Tech it goes into to a lot of the components that we often forget are driven by Mining and copper Supply so I think it’s I if if if we lost a material amount of that supply and the supply demand imbalance grew even more I think that we’d have a lot of disruptions amongst um all the things we take for granted on a day-to-day basis well Copper’s already at uh near a multi-decade high it peaked um at around $5 uh in 2022 came back down and then now it’s back at above $4.40 almost 450 I mean how much further could it go what what what is a what is a reasonable valuation here well I think with with the I think with the demand case you look at City Bank that sees a bullish case for copper and then going above $15,000 per per ton which equates to around $7 and or sorry $67 uh cents per pound so I think that in my view I think that we are at the start of the copper price breaking out based on inflationary pressures based on the large Supply demand deficits that we see and project going into the future as early as 2030 and Beyond so I think that we could be at the start of of copper rallying and once we do break out to new T new all-time highs which we’re not that far from just as we’ve seen recently with gold it it can move fast and and without those resistance points who knows where it could go well I guess the obvious question for investors is why would I be involved with copper projects if there a lot of them are in jurisdictions that you said are politically unstable let’s put it that way they may be shut down they may be are repatriated we nationalized it’s just a lot of risk right how would you address that well I agree with you completely and I think mining is a very tough business even in a t tier one jurisdiction these are not easy projects to explore and develop so I think in my point as an investor I that’s why I think that where your copper and even gold is coming from will be even more and more important as as time goes on and we see more government intervention and the importance of strategic metals like copper and gold and and where and I think it’s increased importance in the coming year so I for as an investor myself that’s why I’m focused on tier one jurisdictions looking at places like Canada the US and Australia there’s others but those are the ones that I focus on um because really there’s stripping out the political risk mining is a tough business and it’s not a risk that I’d like to add through my Investment Portfolio when there’s already a lot going against you so I think in my value case in my investment thesis but also in the market I think that there’ll be more of a a priority on tier one jurisdictions where you do have political stability that if you make a discovery you build a mind that you don’t have to worry about changes coming that can take a project worth billions and decimate it overnight so I think the need for as I said tier1 jurisdictions is here to stay and will become even more important in the foreseeable future so is based in Canada with a lot of projects we’ll talk about your projects um would you say though how would you respond to the argument that perhaps there is a tradeoff perhaps there’s a reason why people go to the DRC or to South America for copper perhaps the greatest higher there so you’re trading a safer jurisdiction for uh a less highgrade mine would that be accurate to say I think there’s certainly in in in some of the as you said in the the DRC or in some of the more riskier jurisdiction some of those are more underexplored there’s cheaper sources of Labor it leads to lower as6 so certainly the investment case for lower tier jurisdictions is there sometimes it’s more profitable um because of the the factors that I mentioned but I think as well all of those benefits can evaporate overnight if you have a government that is comes into power or a government that changes its policy on mining or or these new risks that it wants to mitigate so I think in my mind the benefit and security of operating in tier one jurisdictions outweighs in some cases the higher grades or more profitability that you can see in lower tier jurisdictions because I think the need importance for sources of these metals are are increasing and significantly over the foreseeable future so I think that that it could lead to more government intervention in those places as everybody is scrambling to secure sources of these Metals okay I think this might be a good time to actually talk about abitibi itself so give us a sense of the scale of the projects the size of the deposits the grade and uh which phase you’re in in the exploration process yeah so I I found an ABA Tibi back in 2018 we brought a public in 2020 and and really we wanted to bring uh myself my family office we wanted to bring public uh a vehicle that we could get behind for this cycle we’re not Perma gold and commodity bulls and I think that we a lot of times this this business is either really good or or or really bad so it’s it’s good to time it right so that’s why we’re we’re here we founded ativity to to Really build our vehicle for this cycle we’ve self-funded this company during a tough Market down term which has allowed us to keep our cap structure tight but also uh set up for what we believe has been a company making acquisition in in acquiring the option to earn 80% of b26 in November of 20 uh 23 so b26 is a poly metallic deposit located in Quebec Canada so this is an asset that was owned from Discovery in 1997 until the transaction that we completed in November of last year by Soom which is a private company financed and funded by investment Quebec so this is a very rare opportunity that we’ve we’ve found that this is a deposit of 11.4 million tons at 3% copper equivalent across inferred and indicated uh that hasn’t been in a public company before so we are the first public company to Showcase what is there at b26 today but also um but also develop and show the pipeline of growth at the project so it’s a it’s a very exciting acquisition I think that poly metallic deposits are very rare in Canada and across the globe as a whole so I think in this cycle and as Pierre Lon has said and Mark Bristol from baric the best deposits are copper gold deposits and we do have that with b26 we do believe that the the gold historical historically has been quite underexplored so that’s part of our investment thesis in the b26 that we look forward to outlining further what what do you mean when you say the best deposit are copper gold how do you define best well I think it’s it’s it’s it’s it meets the demands of the market today it also is some of the most profitable mines in the case of poly metallic uh some of these mines are built on the basis of some of the credits say for example if you have a gold Focus poly metallic the mine is built and funded by the copper and zinc components and then the gold is a bonus and it makes the Asic of these mines a lot lower so I think that’s why and we also see a lot of the gold mining companies now are also switching and publicly diversifying into the base metal space so I think they realize that there is uh they’re leaving opportunities on the table by not looking at base metals and especially when you have the best of both worlds with a deposit like b26 that has a strong copper zinc but also complemented by a gold silver you have the best of both worlds and it just adds to the overall value proposition okay I’m just looking at your share price now a year-to date it’s been trading range bound but last year as of November uh 13 2023 it was at 13 cents a share and then it jumped up um over the next two weeks to 50 cents a share what happened there so that was when we announced the b26 acquisition I think that we were a small company but what we had was we had good alignment from management as the largest owners of the company we self-funded the company through tough market conditions and we we provided a a um an option agreement to Soom which had what we believe is a company making acquisition with b26 and we appreciate the trust that they had to granting what was a small company at that point a very significant option so I think what you saw there was the value Arbitrage between us being a small company that were very fortunate to secure such a strong partnership with soam uh uh acquiring and optioning 80% of this asset and very quickly raising $15 million in short order to take any any doubters out of the market that said okay this asset is too big for a company of this size are they are they going to be able to finance it well we quickly address that concern and we did it in a very tough Market with no warrants with strong shareholders so but that that’s where you saw that large price increase through the remainder of the Year well let’s talk about uh share price performance this year I don’t mean to single your company out because the whole industry has been lagging behind gold for the most part your your stock included right why is it that the bullion has been outperforming a lot of the uh a lot of the miners I’m not going to say all of them but a lot of the junior miners underperformed the underlying medal what happened here well I think you you got to First Look at the majors and we’re trading at $2,300 gold and the majors on a cash flow basis are probably valued closer to 15,600 you look at baric gold for example that’s trading at half the price as it was in the 2020 high so I think people are not believing that this breakout is here to stay because we’re not seeing the performance in the majors so I think we need to see the majors perform I think the majors are set up for very large growth because they are starting to get their costs better under control they’re they are their the cash flow that they’re producing now is significant if so I think we need to see money come into the majors I think that will trickle down to the Juniors but we are seeing standout names that are pushing through market conditions but if I think the ones that are pushing through today will outperform significantly when we finally get the Tailwinds behind the sector are are you expecting more m&a to happen now that Gold’s pushing to $2400 an ounce we’re just starting to see the gdxj and the GDX indexes push higher um over the last 6 weeks or so we I’m seeing hype in the charts are you taking advantage of this hype is there going to be more m&a you think I think so I think we’re we’re at the very start of increasing m&a I think looking at the majors they seem to always chase a lot of them don’t want to be the first in the m&a uh cycle and I think a lot of their shareholders are focused on effective Capital Management right now and minimizing risk and what is a very B volatile economic setting that we’re in today so I think the majors like to chase I think that if we continue to see gold and commodities break out I think at some point we’re going to see a couple transactions go through that will kick off more m&a because at the end of the day production profiles with majors are falling off there’s a clear need to replenish reserves and at the current valuations in juniors the it’s much cheaper to grow through m& and acquiring Juniors to that to in comparison to doing the exploration and development themselves so I think it’s a matter of time we need to see a few transaction k kick things offs and then we’ll see fomo amongst the majors where they’re not wanting to miss out on these opportunities because as soon as we see some of those transaction goes through shareholders of the majors will be bugging their boards that let’s not miss out on the next one so I think that we see a few and a fewu more but can you just explain that to the shareholders or viewers watching who may be interested in the sector but not mining experts why is it that Green Field exploration for a senior is more costly than just acquiring another company I mean certainly the capex on the ground you put into a new drill can’t be worth more than an entire company right what am I not getting here well I think it’s a value you have to look at the value of resources in the ground and I think it’s also a result of our sector and juniors being so unloved at the moment that it’s just the valuations are so low that you look at the cost to reproduce some of these gold deposits and poly metallics and copper pories and the cost to replace the investment that has been made in a lot of cases is cheaper than where the companies are Trad at today so I think this is a disconnect that is a result of basically neglect and and just the space underperforming for so long but it offers a significant opportunity for investors in my view and also for the majors to replenish their their reserves would would you say that just based on the numbers you’ve seen that a lot of projects in the junior mining space are trading below nav in other words if you just count up the size of the deposits all the ores in the ground that have been indicated and inferred multiplied by current spot price that number is higher than the current valuation of the company I believe so I’ve seen multiple examples of that that being the case I think it’s it’s also a result of capital being very hard to to raise in the space so a lot of these companies are running out of money and then then the the equity is just they’re in they’re in a a a downward spiral where their management teams are having troubles pulling themselves out it’s not because they asset are not good it’s just because the capital available in junior mining today is still very low uh but I think that that uh circumstance is changing I I there’s a common criticism I’ve heard from some investors which is that they don’t want to get involved in the sector because they don’t know which companies are quote unquote lifestyle companies which is to say that the management team pays themselves a big um salary and doesn’t really do anything productive with the capital that they raise how would you address this concern well I think that and and as as a retail investor myself that’s a concern that I have when looking at any any company that I’m considering investing in and it’s really the thesis of why my family office and myself has moved out of the Shadows of operating and Mining privately for 20 plus years to getting into the public markets because we were burnt by so many of these lifestyle companies and I think I encourage investors to look at financial statements look at the cash burn of these companies because at the end of the day what’s going to create value for shareholders is putting money into the ground on sound projects that have upside through either making a discovery or growing a resource and and and I think that’s very important so for example at ABA tibbi we pride ourselves on in comparison to our competitors on on when we get to the end of the year at 2024 I’m confident that we are going to have one of the highest percentages of every dollar raised that will go on the ground and I think that’s an important metric that your followers investors in the space need to hold more management teams accountable on because I think that part of the reason why the juniors are in as tough a shape as they are today is because of mismanagement of capital so we need to see better management managers of capital that there’s no guarantees in this business we can try as hard as we can but at the end of the day it’s about putting investors in the best position of success and that comes down to putting dollars in the ground with well guided and and strong technical uh teams that that are directing that investment H how much how much cash is the company sitting on currently as we speak today in April and what is your cash burn rate so we’re sitting on roughly I I believe as of the today is $18.5 million so we’re financed through to 2026 so really there’s very there’s no Financial Risk in abot medals for the next two plus years and that puts us in a position of strength um amongst our competitors that investors don’t have to worry if we’re going to take uh uh uh an overly dilutive financing that hinders their current uh position so our our burn rate is low um I’m sure that were in the lower the lowest death smile of burn rate compared to our competitors but I’d say our ratio that we want to maintain is 85 to 90% so out of every dollar we raise we want to every year put in 85 to 90 cents of that that money into the ground well um well still having to get our story out through marketing and through GNA initiatives but at the end of the day every component of this we need to get a good return on investment with for our for our shareholders okay well I know you just closed financing but why wouldn’t you raise another round now that there’s a lot of hype with the price going up well I think to date we’ve we’ve continued to do up rounds uh uh increasing the financing levels of the capital that we’re taking so I think we’re in a position of strength to consider any future financings because we want to ensure that our existing investor base and myself and my family office as the largest investors are getting rewarded at every at every stage of the process so I think to take an additional financing today would not allow us to showcase the hard work that we’ve done this quarter drilling 13,500 meters and what that means to for our model and our and our growth profile of our deposits so I think it’s important to raise money at at the right at the right time we raised just over 20 million over the last five months because our number one mandate was to take the financing risk out of our b26 option agreement and we’ve done that we are financed to earn all 80% of this option by next year and we’ve taken a seven-year obligation and delivered on financing it in five months so I tip my hat to my marketing financial and Technical teams that have all come together to make that a reality so but in summary we’re in a position of strength to look at additional Capital but we want to make sure that our all of our shareholders that have supported us to this time are recognized for the hard work that we’ve done that we’re taking Capital at the right time okay and who are your major shareholders right now so we have uh Frank dustra uh Greg Shandi we had Brian slur chuk which was the founder of K92 uh mining so really the financing was done the majority of it with high net worth individuals so we didn’t use any investment Banks we did a lot of this financing internally so I think this also speaks to the quality of the asset that we’re developing because in order to attract worldclass investors worldclass advisory team uh you need a world classet and I think that that’s what the potential that b26 has uh but really we have a very strong A-list shareholder base some of which your audience would know know but I’m not able to disclose at this point but I think over the coming months we’ll be able to bring more of those individuals out publicly uh and how much of the company do you own to myself personally I own about 3 to 4% my family office as a whole owns 30% 20% of that is filed on SEI so you can see across myself and my board you can see what we’re doing with our with our stock and we’re in this aligned with shareholders to realize the liquidity event down the road and we think that b26 has that potential roughly how much of the shares outstanding are owned by individual family offices or institutional investors versus uh retail audience so I think the retail audience has maybe 30% the balance of it is really held within management my family office High net worth family offices individuals and we have a small institutional shareholder base uh which a lot of it is out of Australia that have recognized the opportunity and the disconnect between the valuations in the Australian Junior mining market and our much lower valuations in the Canadian market so it it it really gives us a unique shareholder base compared to our competitors okay well we’ve talked about how inflation could be a concern for you know all Industries and investors going forward what is this going to mean for your company in particular what will you do to keep costs down in spite of higher inflation overall so I think it’s it’s it’s I think the biggest pressure is in labor and in in the case of abitibi I think that as a result of us having a poor exploration and Mining market for quite a long time we also don’t have a strong pipeline of younger people that are wanting to come into mining so we have a lot of companies that are competing for the same talent pool that is resulting in cost of Labor going up significantly so we have a strong team uh that we have at abitibi that allows us to keep our costs under control but at the same time we hope that the upcoming what we think will be a very strong gold and commodity bull market will attract younger people back into the space that we have a larger pipeline of talent that helps to support the next generation of Junior mining companies uh and in terms of our other costs I think we control our drilling consumables all of our other items by just being very strong negotiators and and treating our the capital we raise like it’s our own money because largely it is we have put a lot of our own Capital into the company but I think not enough management teams are as prudent on reviewing each part of the ex of their exploration business bus from start to finish to ensure that they’re getting as much as they can out of out of the funds invested for investors okay let’s finish finish off on your long-term plans what’s your exit strategy production or buyout so our we’ve we haven’t it’s no secret where we see the the um the best exit point on Lon curve is a buyout after growing a resource before a production or permanent decision so our goal and where we see this with gold and copper is is we think that the demand for a poly metallic deposit especially in a jurisdiction like quec Canada will be significant over the coming years so it’s how do we show the growth potential to the market how do we drill against it and how do we grow our resource in order to Showcase this as a next potential development to the majors which we do believe we we do think we have interest in a project like be 26 so to to summarize we we are positioned alongside shareholders to to try to position the company for liquidity event we think that that’s coming as m&a starts to increase and commodity prices and precious metals go up significantly in my opinion and there’ll be a lot of capital competing for a few opportunities that has been able to push through this Market condition so um I think like in the sector as a whole as Rick Ru says when people when the gold and commodity trade turns on it’s like a flood fitting through a garden holes and I think that there’s going to be so much Capital chasing few like a limited pool of investable products and that’s why in tough market conditions we’re developing b26 we’re fully funded to do so but we think the fers will align to realize the liquidity event at some point down the road okay uh where can we stay up to date on company developments and follow the company um please visit us at abbm medals.com I think reach out to info@ abbm medals.com we’re more than happy to meet with investors answer any questions they have because at the end of the day I’m only able to do this and I and I have to thank all of our investors potential investors because without them we can’t do what we we love to do and and that’s build serious companies to address opportunities that we see in the market so I invite investors to reach out any questions they have we’re more than happy to go over and uh and yeah as you mentioned earlier we’re listed on the CC under the ticker amq and yeah looking forward to getting in touch with any of your following that’s listen interested in learning more great excellent thank you very much for your time today John speak again soon yeah appreciate you having me today David and thank you for watching don’t forget to like And subscribe

Jon Deluce, CEO of Abitibi Metals (CSE: AMQ | OCTQB: AMQFF), discusses why the Federal Reserve may “take the easy way out” and sacrifice the fight against inflation to prevent a recession. This will pave the way for explosive moves for certain assets.

*This video was recorded on April 23, 2024 and is sponsored by Abitibi Metals

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0:00 – Intro
1:12 – Gold and copper price recap
5:25 – Fed monetary policy
7:55 – Gold price outlook
9:18 – Copper outlook
19:05 – Copper mining
22:24 – Abitibi Metals

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