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Peter Epstein
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Consultant / Investment research writer, focusing on natural resource companies & select other small cap opportunities. MBA, Financial Analysis, Top 12 rated business school, New York University (NYU) Stern School of Business Designated a Chartered Financial Analyst, "CFA" In 2011... More
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  • Nicola Mining, $51 Mm Invested In 4 Assets, Market Cap $6 Mm, Cash Flow Next Year

    Nicola Mining, $51 mm Invested in 4 Assets, Market Cap $6 mm, Cash Flow Next Year

    Peter Epstein, CFA, MBA

    The July 2013 announcement of Peter Espig's accepting the role of CEO may have come as a surprise to some; however, to Mr. Espig it was a natural career progression. He grew up around mines and exploration projects, having spent 8 years working as a diamond driller in the 1980s. His career as an internationally renowned turnaround specialist and financier, including working at Goldman Sachs & Olympus Capital, places him in an ideal position to advance Nicola Mining Inc. [NIM.V].

    Mr. Espig has structured greater than US$2.5 billion globally in private and public deals. According to Mr. Espig, "…regardless of the industry, turnarounds require hard work, professionalism and creativity. Mining is not the Wild West anymore, but managers have to constantly monitor cash burn, assets, debt and cash flow opportunities." Prior to accepting the full-time role as CEO, Mr. Espig served as an Independent Director to the Company, a role that allowed him to better understand the value of its assets and to hit the ground running.

    The following interview of Peter Espig, CEO Nicola Mining, was conducted by phone and email in the week ended October 30th. The views and opinions of Mr. Espig are entirely his own. The interviewer, Peter Epstein, CFA, MBA believes that the information provided by Mr. Espig is accurate, but cannot guarantee that it is.

    Can you please explain the history of Nicola's predecessor company Huldra Silver as far back as you care to go?

    Huldra Silver Inc. ("Huldra") was incorporated in 1980 and focused on the exploration and development of its wholly-owned group of mineral tenures located in British Columbia, Canada. The silver-lead-zinc Treasure Mountain property, situated 29 km northeast of Hope B.C., comprises 52 mineral tenures in an area covering 3,187 hectares (7,875 acres).

    After discovering a 250 meter long silver rich vein in 1985, which was tested in 1986, Huldra Silver Inc. went public in 1987. Between 1987 and 1989, Huldra explored 4 underground levels with 2,743 meters (9,000 feet) of crosscuts, drifts & raises and punched another 1,676 meters (5,500 feet) of underground drill holes. An additional 3,048 meters (10,000 feet) of surface drilling was completed as well.

    On the basis of updated, digitized versions, a NI 43-101 report of Treasure Mountain was completed in 2009. Total Indicated Resource above a 10.0 oz/ton (311g/Mt) cut-off was estimated at 33,000 Mt @ 24.2 opt (753g/Mt) silver, plus 4.16% lead & 3.80% zinc, an Inferred Resource estimated at 120,000 Mt @ 27 opt (840 g/Mt) silver, plus 2.79% lead & 4.36% zinc.

    In 2011, the Company acquired additional surface rights adjoining historic mineral tenures for $350,000. Camp construction at Treasure Mountain, with facilities capable of supporting 50 workers, was completed at a cost of $1.2 million. Huldra also purchased mining equipment for $1.5 million to commence underground mining.

    In 2011, Huldra acquired 100% ownership of Craigmont Holdings for consideration of $8 million. Given amicable weather, water, electrical infrastructure and proximity to Huldra's former mining operations, Craigmont's property was an ideal location to develop a mineral processing facility. The Company invested $21.6 million into a new mill plus $2.0 million into a lined tailings facility. Huldra built the Merritt Mill in 2011-2012, completing it November 2012.

    Continue Reading....

    Nov 10 8:39 AM | Link | Comment!
  • Chairman Interview: Paul Matysek Of Nano One Materials, Leading Lithium Technology Company
    Chairman Interview: Paul Matysek of Nano One Materials, Leading Lithium Technology Company

    Peter Epstein, CFA, MBA @peterepstein2

    The following interview of Mr. Paul Matysek, Chairman & Director of Nano One Materials Corp. (TSX-V:NNO) was conducted by Peter Epstein, CFA, MBA in the week ended October 30, 2015. The interviewer, Peter Epstein, believes that the information put forth by Mr. Matysek is accurate, but cannot guarantee that it is. Readers are encouraged to visit Nano One's corporate website for additional information.

    Mr. Matysek is well known to most natural resource investors in Canada and around the globe. He's the Founder and/or key Executive of 3 highly successful companies. Mr. Matysek is a corporate entrepreneur and professional geochemist & geologistwith over 30 years experience in the mining industry. He's currently President & CEO of Goldrock Mines Corp. and has previously held senior Executive & Director positions with several natural resource exploration & development companies. Mr. Matysek is a proven company builder.

    Screen Shot 2015-11-03 at 5.35.26 PM

    Mr. Matysek was recently President & CEO of Lithium One Inc., a company that had a world class lithium project in northern Argentina. In July 2012, Lithium One merged with Galaxy Resources of Australia, via a $112 million transaction, to create an integrated lithium company. Prior to that, he was President & CEO of Potash One Inc. where he was the architect of a $434 million friendly takeover of Potash One by K+S Ag. That deal closed in 2011. Prior to Founding Potash One, Mr. Matysek was Founder, President & CEO of Energy Metals Corporation, "EMC," a premier uranium company that traded on the New York & Toronto Stock Exchanges. Mr. Matysek led EMC as one of the fastest growing Canadian companies in recent years, increasing its market capitalization from $10 million in 2004 to approximately $1.8 billion when it was acquired by a larger uranium producer in 2007.

    Most entrepreneurs spend their entire careers without a meaningful success story. You have three. Is there any commonalty among the companies you support?

    Yes. Timing, People and Execution. I believe that Nano One Materials (TSX-V:NNO) has these attributes, that's why I'm Chairman and Director of the Company. I have been lucky in reading trends early (Uranium - Energy Metals Corp - Potash - Potash One and Lithium - Lithium One). I'm committed to attracting and working with the best professionals in the sector and relentlessly focused on executing a business plan.


    Nov 04 9:49 AM | Link | Comment!
  • Exclusive Interview Of Auryn Resources' COO Michael Henrichsen


    Exclusive Interview of Auryn Resources' COO Michael Henrichsen
    Peter Epstein, CFA, MBA @peterepstein2


    Auryn Resources Inc. (TSX-V:AUG) (OTCQX: OTCQX:GGTCF) is an exciting junior gold company with assets in Nunavut Territory, Canada. Coming off the success of Cayden Resources, (sold to Agnico Eagle), the Company and key personnel from Keegan Resources, Cayden Resources and Newmont Mining are working well together to make Auryn a third winning investment for Executive Chairman, Ivan Bebek] and Shawn, [President & CEO, Shawn Wallace].

    The team reviewed roughly 200 (gold only) exploration and development opportunities, settling on Nunavut's Committee Bay Gold Project. Recently the Company gained 100% ownership through the acquisition of North Country Gold. Control of an entire gold mineralized, district was one of the foremost criteria in choosing project #3. My prior interview of CEO Shawn Wallace can be [found here]

    The following interview with COO Michael Henrichsen was conducted by phone and email over the week ended October 23rd. The views, opinions and facts provided by Mr. Henrichsen are assumed to be accurate by the interviewer, Peter Epstein, CFA, MBA. However, the interviewer can not assure readers that the information contained within the interview is accurate. The views, opinions and facts put forth by COO Henrichsen are entirely that of Henrichsen and the management team of Auryn Resources. A very recent and highly detailed report on Auryn Resources can be found in the Company's filed Management [Discussion & Analysis.]

    Please give a brief overview of Auryn Resources

    Auryn Resources Inc. (TSX-V:AUG) is a well-financed, success driven, gold exploration company boasting highly experienced management, Board and Technical teams with proven track records. Auryn is advancing the Committee Bay Gold Project, "CBGP," located in Nunavut Territory, Canada. Auryn Resources is the third company that Chairman Ivan Bebek and CEO Shawn Wallace have started. Our team founded Keegan Resources and later Cayden Resources. Keegan became Asanko Gold and merged with its neighbor, PMI Gold. Cayden Resources was acquired by Agnico Eagles Mines (NYSE:AEM) for C$ 205 million. I mention these prior achievements because I think that success begets success and it bodes well for our future at Auryn. That's why I'm here. A much more detailed description of Auryn is provided in the Company's [Corporate Presentation.]

    Continue Reading...

    Oct 23 9:16 AM | Link | Comment!
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