Video by Resource Talks via YouTube
Source
This is an interview with Strategic Resources’ CEO, Sean Cleary.
Strategic Resources is a Vancouver-based mineral exploration and development company focused on high-purity iron and vanadium projects in Canada and Finland.
The Company is primarily focused on its flagship BlackRock project, which is a fully permitted and ready to construct mine, concentrator and metallurgical facility in Québec.
The Mine and concentrator portion of the Project is located approximately 20 km southeast (60 km by road) of Chibougamau, Québec on traditional Cree lands within the James Bay Territory.
The metallurgical facility portion of the Project is located at Port Saguenay, a Federal deep sea port and industrial park with access to the St. Lawrence Seaway. Port Saguenay is 380km south of Chibougamau which is connected by existing railway. Both the mine site and metallurgical facility are fully permitted to commence construction.
The main idea is to mine ore at the Blackrock mine, make it into concentrate on-site, truck the concentrate 25kms to a train, transport the concentrate 400kms by train to Saguenay, where it will be turned into pig iron with a vanadium, and a titanium by-product.
According to the latest Feasibility Study, this operation has the potential to generate an average of $811M in annual revenue, over a 39-year mine life, with an 18.3% Internal Rate of Return (IRR), resulting in a $1.93B NPV. The expected CAPEX is around $1.5B.
In this conversation, Sean told me that the company is planning on splitting the upfront CAPEX in 3 parts, starting with a (roughly) $500M initial CAPEX.
Strategic Resources also has a second project, called Mustavaara, which is located in north-central Finland, approximately 179 km northwest of Oulu and 650 km north of Helsinki. This is not the main focus for the company.
Timestamps:
00:00 important warning
01:11 company overview
10:50 why is the stock still falling?
12:50 can they split the $1.5B CAPEX in parts?
19:00 how much would the total upfront CAPEX be?
20:40 what’s the timeline to get into production?
21:40 when will Strategic be cash flow positive?
22:30 will there be more news in 2024?
26:45 is the project for sale?
28:05 why was the Blackrock project in bankruptcy before?
30:54 will they do another FS?
32:30 why do mining companies typically not own smelters?
38:05 who are they selling the end product to?
40:30 are the vanadium & titanium a credit or a penalty?
46:30 will there be grade fluctuation over the LOM?
47:50 what happens after year 6 on the trucking side?
51:15 do they have access to enough skilled labor?
55:55 what could be a potential financing package for Blackrock?
59:00 will they have access to government funding?
01:04:27 what’s happening with the Finnish asset?
01:06:00 is the Finnish asset for sale?
01:07:00 are they looking to buy other assets in the area?
01:08:20 how long is the runway?
01:09:49 what are they doing for marketing?
01:11:00 how much are they spending on marketing?
01:13:36 contact details