Could you provide an overview of recent developments at Sidex?

The past year has been an improvement over the two preceding ones, which were challenging. Although our investment targets were attained, overall deal flow remained modest. We saw increased activity in financing, albeit at a slow pace. Despite strong performances in gold and copper, other commodities like nickel and lithium faced downturns. Interestingly, stock market performance seemed generally detached from commodity prices. What is causing the disconnect between the high gold price and the lagging performance of gold stocks?

The disconnect seems to stem from geopolitical tensions driving gold prices to unprecedented highs. However, market caution prevails as historical trends suggest potential pullbacks amidst geopolitical uncertainties. Additionally, despite soaring commodity prices, rising operational costs, including overruns and permitting delays, have squeezed profit margins for gold producers, prompting investors to await tangible signs of sustained profitability before fully committing to gold stocks. Will we see more majors acquiring projects to drive exploration and replenish reserves, particularly in Québec?

The current landscape presents hurdles for major miners. Escalating costs, coupled with difficulties in replenishing reserves, deter significant investment. Many major miners struggle to replace reserves at a pace necessary for sustainable growth.

While there is talk of majors acquiring projects and companies, the reality is more nuanced. There are success stories, however, such as Alamos which has successfully navigated this terrain, leveraging strategic acquisitions to bolster their growth prospects. Alamos’s approach demonstrates that smart M&A decisions can yield significant benefits, especially for companies not constrained by their size. How does the recent shift towards gold investments align with your previous focus on discoveries in James Bay? Are you pursuing a specific commodity strategy, or are you still exploring various options?

Our investments are not tied to specific commodities. We are bottom-up investors, open to companies in Québec seeking capital, regardless of the commodity (except iron ore). We have been most active in gold, copper, lithium, and nickel. Québec has proven to be rich in lithium, with significant discoveries like Winsome Resources and Patriot Battery Metals. Despite the lithium price downturn, interest remains strong, with ongoing financing and investor interest. Beyond commodities, what criteria, such as ESG practices and financial stability, influence your decisions when funding firms, particularly at the exploration stage?

We consider a range of factors. We have long emphasized social acceptability in financed companies, even before ESG gained prominence. Now, in addition to commodity agnosticism, we prioritize investments in Québec-based projects with strong management teams. As a mining engineer with experienced geologists on board, we assess geological viability rigorously. We are not swayed by market momentum; instead, we focus on technical soundness and competent management. Moreover, we prefer companies that manage their share counts prudently. Several companies in our portfolio have managed to maintain respectable share counts despite many years of activity. Azimut and Midland come to mind. How has the exploration scene in Québec evolved over the past year, especially regarding the challenges in attracting capital for junior companies?

There has been a slight uptick in activity. Juniors remain cautious with their investments, but there are numerous active programs, particularly in lithium. Gold is thriving, driving exploration, while copper continues to perform well. However, nickel is facing difficulties, with many projects struggling to secure financing. Looking ahead, I anticipate continued success for gold and copper, while nickel and lithium may encounter pricing challenges. Having said that, investor interest in lithium should remain strong. Could you summarize your key priorities moving forward for the next 12 months?

Our focus is to deploy our capital effectively. We are actively seeking companies to engage with us, encouraging them to explore opportunities in Québec. We have the resources to invest, and there is immense potential for discoveries. Accelerating exploration activity is crucial to break out of the current stagnation. Significant discoveries, like those in Voisey's Bay and Québec's Éléonore, can revolutionize the landscape. We need to intensify exploration efforts to increase the chances of such breakthroughs. As they say in hockey, you can only score if you are on the ice. So, let us get out there and increase exploration efforts.