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241. Bull, Bear & Beyond – Ajax Resources: executive interview
12 Plays19 hours ago
In this interview, Ajax Resources CEO Ippolito Cattaneo discusses Macacha’s anticipated Environmental Impact Assessment approval, Reveille and the company’s Euronext Growth Oslo exchange listing. He also covers recent developments at Pereira Velho and how he intends to maintain Ajax’s rapid growth profile.
Ajax Resources acquires and develops assets with historical production, unexploited reserves and exploration upside. Its flagship asset is the Pereira Velho gold project in Brazil, which it acquired earlier this year from Appian Capital Advisory (one of the world’s largest, specialist mining funds).
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About ‘Bull, Bear & Beyond’
Bull, Bear & Beyond': features candid conversations with senior executives and from our own team of experts from across industries, exploring strategy, innovation, and the opportunities shaping their markets and 60-second pieces are a compressed summary of content designed to convey our message in a single, easily shareable hit.
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Transcript
Introduction to Edison TV and Ajax Resources
00:00:07
Speaker
Hello and welcome. I'm Ashbourne and you're watching Edison TV, where we like to think we have our fingers on the pulse. This next company has just come out with an announcement only this morning that it's expecting approval of its EIA, its Environmental Impact Assessment, as early as next month at Macacha, its project in Argentina.
00:00:28
Speaker
It's also applying for extra ground around that project and it's going ahead with a listing in Oslo on the Euronext
CEO Insights on Recent Announcements and Plans
00:00:35
Speaker
project. Growth Oslo Exchange. The company of course is Ajax Resources um and we thought there's so much news with this company who better to answer it than the company's CEO. So it's a very great pleasure for me to welcome to the studio Ippolito Cittaneo the company's chief executive who's joining us today.
00:00:53
Speaker
Ippolito thank you very much for joining us. Very good to see Charlie. where Where should we start? Well, so much to talk about, as you said. Let's
EIA Approval and Drilling Plans for Macacha Project
00:01:00
Speaker
start with McCatcher. I think that's a very topical theme today with our announcements. So we we announced that the EIA approval, which of course is not in our hands, is in the hands of local authorities, should be, we hope, approved during the course of next month. And on the back of that EIA approval, which is for a project that hasn't seen activity in 20 years, so there's been quite a lot of ah work done, you know very comprehensive technical, environmental,
00:01:25
Speaker
and community relations kind of EIA ah package, should we say, that will, we hope and we're we're told will be approved during the course of next month. So as soon as that's approved, we will start our 5,000 meter drill campaign, which as you know, will be targeting the existing resource, which is a copper oxide resource drilled well, 20 years ago was it was drilled and the resource was published by Alexander Mining PLC, they invested more than $20 million dollars into the project and and defined the resource.
00:01:56
Speaker
And then we'll also be targeting the deeper sulfide mineralization, which has not been a subject of drilling activities and is not included in that mineral resource estimate, and that historical mineral resource estimate we have. So the goal will be a very, probably one of the most seminal moments in our company's evolution, because we focus on acquiring projects that have high historical investment and which for whatever reason, be it ah you know past metal pricing, political and financial turbulence 20 years ago, ah project turbulence, because some projects work at some points in history and then they don't work for other reasons later on.
Argentina's Evolving Mining Environment
00:02:32
Speaker
South has had ah an extraordinary evolution in its mining activities from 2008 to today.
00:02:37
Speaker
South is a thriving mining province. And so mining is very much more understood and liked, which is really why this project now um yeah other than the copper pricing and the silver pricing increasing is one of the reasons this project will now, we believe, work. And so we look forward to starting this campaign and coming back to the market with a dual-compliant mineral resource estimate, which will, we hope and expect, be many times larger than the existing historical resource.
00:03:04
Speaker
Do you think we can put a timeline on that? So we, it's good you mentioned that because we were initially planning on using one rig, ah but because timing, especially for a listed company is very important, we will most likely be using two rigs.
Drilling Strategy and License Expansion
00:03:18
Speaker
We have very good relations with ah local drilling companies, one in particular.
00:03:22
Speaker
We are running a tender x exercise because of course we need to be as transparent and commercially open-minded as possible because you know we can't always go to one supply. We have to find out from the market what what the best rate is and what the best price is and the only parameters that we'll be analysing quality and and and technical competence and execution is important. So, um, yeah we, we, we expect within, well, I don't want to make a, give a timeline that will then come to harm me, but I think that let's put it this way as quickly as possible, we will drill that, those 5,000 meters, uh, and certainly well before the end of the year.
00:04:00
Speaker
And, uh, and we will soon be, announcing the engagement of an MRE, um, uh, CP, a Compton Parsons. So that, that, that will be the next step. And then we'll have everything lined up and ready to go. So upon the, I approve all the,
00:04:13
Speaker
announcement when we put out, you know, dreading has commenced, right? That's the next announcement we expect from McCatron. And the significance of expanding the license error is is also not to be understated because we want to capture as much resource or potential resource as possible. And in fact, there may be other news on that front in due course because there are other areas, other licenses nearby.
00:04:33
Speaker
Alexander Mining had a very large portfolio back in 2006, 2000s, the early 2000s. So they had done a very good job. And of course, there were other reasons why things didn't work out perhaps as they would liked. But here we are today, capitalizing on past work and ensuring we learn from past mistakes committed by other people.
Diversified Portfolio and Historical Investments
00:04:56
Speaker
And despite being young company, we were humble, but we learn from history. So a little bit of investment and hopefully a lot of return.
00:05:04
Speaker
That's the goal. And statistically, we we think it will work. We hope to have 100% success, but we the beauty of our portfolio is that we have exposure across three different countries now and projects which have different stages of development. But the common denominator across all the projects is that they have high historical investment and typically have an existing historical resource, right? So we've got Pereira Velho in Brazil, which doesn't have a resource, but has a non-compliant Appian estimate, right? In-house 110,000 ounces. So we're running the final, I often say this, we're running the final stretch of a marathon um and capitalizing on a lot of good work that's been done by our predecessors
00:05:43
Speaker
and delivering, we hope, during an unprecedented metal pricing environment, right? Because gold has come down a bit, but it's never been high. there and And copper and silver, which are other the key matters of ours, have also a similar pricing trajectory. So where we're very confident that we're doing. We also feel that we've chosen the right countries at the right time. we were we were operating in democracies, Brazil, Chile, and... Argentina are a strong, functioning democracies. And so we're very happy of our focus. And we think that South America will have a lot to offer for over the coming years.
Uranium Projects and Italy's Nuclear Stance
00:06:15
Speaker
And Ravalli, very good fundraise, lot of good market support. It's a uranium story. It's two projects that that that are already underpinning this IPO are projects that I discovered in 2024 that I came across.
00:06:31
Speaker
And I wanted to put them into Ajax, but Ajax didn't have a history of any kind of mining activity in anywhere anywhere in the world, really. because it was prior to our Aquis admission and our Ajax becoming a natural resources investment company with the first transaction we announced in 2025.
00:06:46
Speaker
So um a wonderful opportunity to fully built underground uranium mines, which have more than hundreds of millions of of what today euro equivalent of investment Not lira. Not lira, yeah. I had to do the conversion there. But um enormous amount of work done by ENI in the 60s and 70s and early 80s.
00:07:06
Speaker
ah Italy's largest uranium resource, one of the most interesting uranium deposits in in Europe. We're at a time of heightened geopolitical tension in the world, especially with energy supply and energy autonomy.
00:07:18
Speaker
And I think, again, we've been quite lucky with the timing because Italy has had a very, um ah very, shall we say difficult relationship with nuclear energy. We shouldn't conflate nuclear energy or uranium exploration, but they are one of the same, often in public discourse.
00:07:33
Speaker
And Italy, you know, after Chernobyl, ah really abandoned nuclear energy definitively. Whereas now a couple of weeks ago, and this is, you know, this is all over the news, Italy has finally now announced, its own government has announced that nuclear energy on it is on its way back, right, by way of small modular reactors.
00:07:51
Speaker
So we feel that, of course, there's no direct connection between Italy embracing nuclear energy and the uranium applications that we have because we are, going through the final permitting to get those two licenses um released or granted by the competent authorities in Italy.
00:08:09
Speaker
ah But it, of course, is very helpful to have as a backdrop to have a nation that is now embracing nuclear energy for the first time in its post-war history in such a
EIA Submissions and Market Impact
00:08:21
Speaker
definitive manner. So so we're very um we're very pleased and we look forward to for a value for those two licenses to be granted.
00:08:29
Speaker
and The EIA has been one has been submitted and one will be submitted in July. This is all being publicly announced so we can talk about it very freely. And upon granting, we feel that that um That story will be one of the most interesting uranium stories, definitely in Europe, but even worldwide, because that there are very few comparables. So that that is something we're very excited about. And your interest in the company?
00:08:50
Speaker
Ajax's interest. Well, I have two interests. I like Ajax. I'm i'm not the largest shareholder. I'm and the founder of Revali. um And I put a bit of my and money into it because I always believe in what I do. And Ajax will be the second largest shareholder in Ravalli. The first shareholder, the largest shareholder will be Zenith because the project was incubated via a Zenith subsidiary. ah But um I do take ownership of it somewhat because i I'm the one who sourced the opportunity and and it was meant to go through Ajax, but then there were a series of considerations that were very valid that meant that we chose to go through and partner with ZF on this deal. So basically this company has two, you know one larger ah well-known ill listed companies, ZF Energy, main market listed company. And now Ajax, Atquis listed business, ah backing it as founding cornerstone shareholders. So we feel that's um that's been a good foundation. it's been that The fundraiser has been very well supported. Uranium prices, as you know, have done very well.
00:09:50
Speaker
um So again, we're very excited about that. And we see it as a significant value catalyst for Ajax.
Strategic Listing on Euronext Growth Oslo
00:09:55
Speaker
And just finally, I must ask you about the Oslo, the Euronext Growth Oslo listing. Going ahead, you said this summer.
00:10:01
Speaker
Just tell us a little bit about the background, the thinking, the strategy, what you're hoping to get from it. So, uh, Aquis has been a very good listing. Um, we, we feel the market has been, has been wonderful. Uh, we, we, we can only speak highly of Aquis.
00:10:14
Speaker
Uh, the liquidity has been good. We've been one of the most liquid stocks on Aquis. I think there's only one company that beats us on Aquis, but your hats off to them. They've done exceptionally well and they're very inspiring. I shan't name them, but that your viewers will probably know who I'm talking about.
00:10:28
Speaker
um but um But it's been a very good journey. And for that reason, we want to increase our liquidity further. We've got ah ah you know an insatiable appetite for liquidity. So why we are seeing all the Euronex? Well, Euronex Oslo gives us access to the whole Euronex family in Europe, right? So Lisbon, Paris, Milan, um a number of of European exchanges, there's a lot of appetite for mining in Europe.
00:10:51
Speaker
ah In Oslo, there are very few companies like us. There are very few um mining or natural resource companies such as Ajax. And also there's a lot of money in Oslo. It's a very rich country that the recent spike in oil prices has made the an already very rich nation even wealthier. ah So there's a lot of retail funding there.
00:11:10
Speaker
And we we want we want our story to be appreciated and heard and and and invested in as much as possible. So so we feel that the Euronics Oslo is a great place to be. and um And so we're looking forward to our IPO, which you know as announced, will we expect be the summer. It may be sooner than people think, but news will follow on that and it will depend on the final regulatory approvals. We're always at the mercy of ah of the regulators and rightly so.
Future Plans and Optimism Amid Share Decline
00:11:36
Speaker
So we um we're looking forward. a lot of value catalysts. We've got the McCatcher drilling, um which will be starting in July. We've got the Oslo listing or the Revali listing. We've got the Pereira Velo project, which we're now going be... um ah in the next couple of months, we'll be announcing our plans We're going start drilling that this summer, most likely as well.
00:11:54
Speaker
we We're going applying for our environmental permits and then getting our drilling program underway. and we've got a couple of other deals we're looking at with um with some of our new major shareholders, which I can't go too much into, but we've got a lot of news flow. So really, it's been a bit depressing seeing our share price decline over the past few weeks. We've had a bit of You know, there's been perhaps, ah in the background, there's been so much going on that we haven't been able to communicate the news flow until we've re-achieved the milestones. But we've we've seen an uptick maybe in the lead up to arriving to me today. or People knew that we were going to be it it would be interviewing me. So um there's um there's a lot to be optimistic and confident about in the Ajax ah family, shall we say.
Closing Remarks on Share Performance
00:12:37
Speaker
Ippolito, thank you very much indeed. I'm afraid that's all we've got time for. um Ladies and gentlemen, that was Ippolito Catanio, the chief executive of Ajax Resources. Do take a look at them for a couple of reasons. One is the shares are up today about 10% and the rest of the market is, well, not quite down 10%, but it's very definitively down, I can tell you. So that should tell you something alone.
00:12:58
Speaker
Have a look at our last report as well. The shares trading were just under six pence at the moment, and we reckon a conservative valuation would be nine pence and a top of the range valuation would be about 46. So maybe somewhere in the middle, 25 seems about fair.
00:13:12
Speaker
We'll be bringing you more such opportunities in the very near future, we hope. but until then, you have a capital day.