Western Copper & Gold: The Case for World Class Copper Projects
Trevor Hall [00:00:04] Welcome back once again from the floor of PDAC in the Investor Room. This is Trevor Hall of Mining Stock Daily, sitting here with our returning champion, Mr. Paul West-Sells another notch in the old guest seat here, at Mining Stock Daily. You're very popular here.
Paul West-Sells [00:00:21] I'm glad to hear it.
Trevor Hall [00:00:24] You know, we did an interview, you know, we chatted at Roundup about a month and a half ago. It was funny because literally that day is right when Coronavirus kind of hit the media. But we were at the conference, so we had no idea what was going on and what would transpire leading up to now. But we are recording this on the day where the U.S. Fed has just put, quote-unquote, "stimulus into the economy with another rate cut." And we've seen gold move up, I think it was last up $45 on the spot price last I looked today, Paul, but unfortunately, copper was flat, which I guess is okay.
Paul West-Sells [00:01:04] Yeah, well, and, you know, we're Western Copper and Gold. And usually, we're with more copper than we are gold. But, you know, we just for our last corporate presentation, we ran the numbers, and right now, our revenue is 44 percent from gold, 44 percent from copper. And then that balance is some molybdenum. So we're arguably more of a gold story than a copper story today.
Trevor Hall [00:01:32] I guess you could argue to say that you've been trading like a copper story as of last week when we saw the sell-off, but that basically was all from margin selling, margin call, selling.
Paul West-Sells [00:01:40] Yeah. And I actually think, you know, it's interesting how we trade because we usually trade as a copper story. But as gold has really, really shot up here and copper has pulled back, we're starting to trade a little bit more like a gold story. I mean, today is a perfect example. We're up in the market, whereas copper is flat to down and most copper equities are down. So, yeah, I think people are recognizing that there's a big gold component. And of course, you know, from our exploration potential, you know, with hitting that high-grade gold intercept last year and then and our plan to really sort of go in and further delineate that high-grade gold zone. Who knows we might be Western Gold by the next time I talk to you.
Trevor Hall [00:02:22] You got to play the market somehow. Paul, I don't know if you've had a chance to sit in on Robert Friedland's talk yesterday, but he had an interesting idea that he thinks copper will be what oil was when the car when the Model-T came out because Rockfel just, he didn't make the vehicles he made, he produced the things that let the vehicles run. And Friedland really thinks copper basically is positioned to be what oil was back in those days because with all the electric vehicles coming out. You know, have the fundamentals changed at all in your mind with copper, in the electrification of the world and all that? And do you think copper miners will have their day in the sun here sooner rather than later?
Paul West-Sells [00:03:12] I mean, I think they will, because, I mean, the challenge with the copper market and if you look at your average sort of supply-demand. I mean, first of all, copper is a supply-demand story. I mean, it's very simple. Gold is, as you know, gets a little more complicated because it's a flight to safety and things like that, which we're seeing right now. But copper is pretty simply supply and demand. So with this simple supply and demand equation, when you look at the copper market, we need a lot more copper mines. And then I'm sure that Robert was mentioning that he has one, too. And of course, you know, Casino is a great copper project that they'll fit into that. If you take that simple model and add on, even a conservative electrification sort of bit to it, it begins to actually I'll be honest, it begins to get a little bit scary. Like, I mean, I'm not really sure where we're going to get all of this copper because there's not a whole bunch of really, really early stage ground copper projects. So I think you're going to see copper hit three, once we get over this Coronavirus issue, I think you're going to see copper hit three bucks and then keep going pretty quickly on the back of that because really the next wave of copper projects need, they need the banks to believe in 3.50 copper. And so that might be $4 copper for the banks to believe in.
Trevor Hall [00:04:41] Well, let's talk about the project. I mean, we did a pretty good conversation back in January about the 2020 strategy and what you're going to do to continue development. But you had an interesting press release, I think it was last week. You have a new strategic investor, pretty big. And the funny thing is like you look at these credentials that he has had a tremendous background in mergers and acquisitions. So Yoza for people who maybe missed the press release of that. Who is this gentleman and why is somebody like him coming in as a strategic investor really important for Casino?
Paul West-Sells [00:05:13] Yeah, I mean, Mike Vitton is the investor that we brought in, and just really a quick story on that. We actually closed that deal last Friday when the markets were incredibly volatile. I mean, we traded down as low as 66 cents and then up to 85. Anyhow, I was I mean, he's a great guy and a great investor, and I wasn't really that worried, but I was pretty happy to see that the check made it into the bank. But yeah, and so Mike really was in the heyday of mining. He was the head of equity sales for mining based in New York for Bemo. And, you know he's raised over 200 billion dollars for various mining. I mean, this isn't just junior mining companies actually, not just junior mining companies going out and getting money. I mean, this is a large project financing. This is large tier-one mining companies going on with doing equity financings and all that. So, I mean, he brings two things into the story as a strategic investor. First of all, is obviously his access to capital and being a CEO I can tell you, raising money is much more difficult than I think the average person really realizes. I mean, when the market dries up, it dries up and it happens overnight. It's very tough to raise money. But having some of them with Mike and then the network that he brings is is key on that front. And then the other thing that he brings is he's a guy that everybody knows. And so he has access to people, other corporate entities, CEOs of top mining companies that I and other members of our team just don't have. And so he brings that to the table as well. So, yeah. I mean, we were very happy to have him on. You know he has a good position now and I look forward to working with him moving forward.
Trevor Hall [00:07:20] I do want to ask you about something that doesn't necessarily directly in connection with Casino, but just got done talking with Brandon Macdonald and the road that got approved, the 71 million dollars for the infrastructure of McMillon Pass. And I know the mining community in the Yukon, you are a very tight group of people. And you are you do a very good job of supporting everybody as best as you can. Why is something like that road in that financial push for infrastructure? What's the significance for the other projects such as Casino on the Yukon to see something like that happen?
Paul West-Sells [00:07:57] Well, it's good, and I'm excited. Obviously, I'm excited for Brandon. And on that announcement and you know, this road package, it was a great announcement that was made in 2017. The Prime Minister came to the Yukon, announced this big road package. But, you know, then it's like, well, when are you going to start to turn over dirt? Right? And that's taken longer than anybody has wanted. But Brandon, it sounds like that's all lined up and that's going to be executed here. It was actually good for us for Western because actually when the minister made that announcement, he actually said, "The road to Casino is where we're also going to be breaking ground on that this year." So he's told me that several times behind closed doors. But when he says it to a roomful of people, it carries a bit more weight. So, you know, I'm excited for Brandon. I'm excited for us. Excited for the Yukon, you know, these are great investments. They're great for the first nations involved. And, you know, we look forward to sort of seeing that dirt move.
Trevor Hall [00:09:08] Well, I look forward to seeing some announcements out of that here throughout the year, too. Paul, thanks again. It's good to see you. And we'll catch up with you again another time. Paul West-Sells of Western Copper and Gold, which trades on the TSX and the NYSC with the symbol WRN.