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  • Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Article & Interview Directory
04 Section 1: Introduction
05 An Evolving Constitutional Landscape
06 Chile Ministry of Mining Interview
07 Consejo Minero Interview
08 APRIMIN Interview
09 Expert Opinion Article: Francisco Acuña, CRU
10 Expert Insights: Chile’s Evolving Sociopolitical Landscape
11 ESG & Renewable Energy
12 ICMM Interview
13 Aggreko Interview
14 Mining Investment Climate
15 Appian Capital Advisory Interview
16 Expert Insights: Attracting Sustainable Investment
17 Section 2: Production & Development
18 Copper Production & Development
19 BHP Interview
20 Antofagasta PLC Interview
21 Freeport McMoRan Interview
22 Teck Resources Limited Interview
23 Amerigo Resources Interview
24 Precious Metals
25 Kinross Interview
26 Rio2 Limited Interview
27 Lithium
28 SQM Interview
29 Albemarle Interview
30 Section 3: Junior Exploration
31 Study-stage Copper Projects
32 Expert Insights: Chile's Junior Exploration Community
33 World Copper Limited Interview
34 Early-stage Opportunities
35 ATEX Resources Interview
36 Torq Resources Interview
37 Pampa Metals Interview
38 VerAI Discoveries Interview
39 Lithium Exploration and Development
40 Lithium Chile Interview
41 Wealth Minerals Interview
42 Monumental Minerals Interview
43 Section 4: Engineering, Construction & Consultancies
44 Engineering & Consultancies
45 Water and the Environment
46 JRI Interview
47 Wood Interview
48 SRK Consulting Interview
49 Construction & Contractors
50 Sigdo Koppers Interview
51 Züblin Strabag Interview
52 Echeverría Izquierdo Interview
53 Thiess Interview
54 Going Underground
55 Master Drilling Interview
56 Robbins Interview
57 INCIMMET Interview
58 Section 5: Equipment & Technology
59 The Evolution of Mining Equipment
60 Scania Interview
61 Expert Insights: OEMs on Sustainability and Innovation
62 Comminution & Material Handling
63 Metso Outotec Interview
64 ME Elecmetal Interview
65 TAKRAF Interview
66 Haver & Boecker Interview
67 Innovation & Technology
68 Hexagon Interview
69 DSI Underground Interview
70 Dingo Interview
71 Pipes, Valves, Components & Wear Protection
72 Hofmann Engineering Interview
73 Expert Insights: The Benefits of AI and Automation
74 Section 6: Services
75 Drilling & Blasting
76 Geotec Boyles Bros Interview
77 Enaex Interview
78 Services
79 SGS Interview
80 Section 7: Sponsored Company Profiles
81 FreePort-McMoRan Profile
82 Rio2 Company Profile
83 Lithium Chile Profile
84 Metso Outotec Company Profile
85 SGS Company Profile
86 Credits

Michael W. Scherb, Founder & CEO,

APPIAN CAPITAL ADVISORY LLP

“There is a lot of ‘greenflation’, where you have negative mining sentiment on one hand, and push for energy transition on the other. This will only lead to higher prices and more inflation. Governments therefore have a responsibility to allow mines to get into production unabated.”

Considering current metals prices, how difficult is it to find value in the right type of projects?

I think you have to look at value relatively. The five biggest mining companies are trading at around a 4x EV/EBITDA valuation, compared to Tesla which is trading at an 80x EV/EBITDA metric, and they are all basically feeding the same end market. This represents a massive disconnect to where the retail and public institutional investor is putting their capital, and I think there is an opportunity to close that gap.

There is also a disconnect between the capital required and the capital on offer, and that’s where we step in. Bear in mind, Appian does not invest in public entities: we invest in private assets. This does not only mean investing in the traded shares of a company – it could be a JV earn-in at the asset level with a corporate that is struggling to find financing.

How do you view the current political risk in Latin America from a mining standpoint?

We view politics very much like we view commodity prices – a pendulum on a clock swinging back and forth, side to side, but rarely in equilibrium down the center. Investors will always deploy their capital where they see the best risk/reward proposition. If politics moves against foreign investment in the mining sector, we will simply invest our capital in a different country. We are watching closely what is happening in Chile and Peru, but the benefit of having a 10-to-12-year-fund is we do not have to overreact, and can step in when we think the market offers an opportunity. We do not necessarily think that a move to the left would stop us from investing. There was a similar reaction when AMLO was elected in Mexico, and that has turned out better than expected.

Everyone seems to be bullish about copper at the moment. Does this concern you?

We always try to be counter cyclical to the market. When the whole market is saying one thing it is usually an indication to do the opposite.

It is slightly worrying that everyone is so bullish, but this is potentially a unique case because we don’t see where the supply is coming from, we don’t see the ability to easily ramp up brownfield deposits, and we don’t see a lot of exploration success. At the same time, we do see demand getting stronger. Even if Chinese construction was to slow down, our view is that the energy transition would more than make up for this. Substitution should also not be a big issue, given copper’s unique properties to conduct electricity. If a way to economically process low-grade ores was found, that is one of the only areas I see that could dramatically affect copper.

What could be done to start changing the public image surrounding mining?

Mining is an easy industry to blame because there is an emotive attachment to what is in the ground, given that it involves a country’s natural heritage and resources. However, as we all know, mining is in everything around us, so metals need to be extracted in a socially-responsible way. This is something we champion at Appian by being a signatory to the UN-backed Principles for Responsible Investment and viewing ESG as a crucial element in all our investment decisions.

As well as mining companies being more transparent, governments could adopt a more constructive tone with the industry. Politicians should also be more realistic about developing new opportunities. It is easy to put out a statement that everyone will drive an EV by 2040, but when you do the math there is no way the world has enough copper or nickel to support that. There is also a lot of ‘greenflation’, where you have negative mining sentiment on one hand, and push for energy transition on the other. This will only lead to higher prices and more inflation. Governments therefore have a responsibility to allow mines to get into production unabated.

What are some of the common errors you see management teams make in the mining sector?

Management teams across the board, from geostats definition to resource estimation, through to capital cost estimation, mine plan design, plant design and downstream tailings are almost always more optimistic about their assets than is warranted. Being realistic is key instead of trying to sell something you do not have or cannot do.

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Expert Insights: Attracting Sustainable Investment