Latest news with #LYNDSAY
The Market Online
14-05-2025
- Business
- The Market Online
Introducing a New Age of Digital Security and Communication
Sekur Private Data Ltd, a company rewriting the rules on secure communications in a world where privacy has become a premium asset. As big tech platforms continue to mine, monitor and monetize user data, Sekur offers a clean break with fully Swiss hosted proprietary solutions that put users not algorithms back in control. We caught up with Alain Ghiai, Founder and CEO of Sekur. He's been one of the earliest and loudest voices warning about the cracks in traditional cloud models. And he is building a business around the idea that real privacy isn't just a feature, it's a foundation. Now, today we'll dig into why Sekur's no big tech, no AI, no nonsense approach is gaining serious ground, especially in the US market. LYNDSAY: Alain a lot of companies, I mean, they say that they offer privacy, but if the person isn't using the same platform, well then that's game over really. So how does Sekur protect users if the other person isn't using the same Platform? ALAIN: That's a great question. So we offer three solutions so far our VPN, Swiss hosted proprietary, our email and our Messenger. So one of the biggest issues right now is called Business Email Compromise (BEC), and what happens is when you send an email to someone whichever of the two duopoly emails they use, hackers can intercept that impersonate you or your recipient. Sometime after a few months, they're going to trigger their attack. A common thing of BEC attack would be a wiring information that has been changed, contracts, et cetera. What we do with our Sekur send, we're able to send an email to anybody outside of Sekur that doesn't have it. They receive an email, they click on a link, you can password protected, read limit or time limit or do nothing, and then immediately they, in our Swiss server, the key that we do is that we never leave the Swiss highly encrypted server environment. So we're sending signals outside and within Sekur in order for everybody to log in. It's like a meeting place so to speak. And then we communicate within it. We do the same thing with messaging. We also don't record your phone number. So if you sign up for Sekur and you do your secure messenger and you have your app, you'll notice that other apps will need your phone number, and that's how they data mine you and your contacts, we don't. So we have a vetting process that's pretty easy to follow, but extremely effective against hackers, sim swapping, things like that. We basically are able to invite anyone via text or email to click on a link immediately it opens a tunnelling portal to the server, and you and I can chat. I could be in New York, you could be in Tokyo, and the whole thing happens in Switzerland, which is kind of interesting. So we use our proprietary tech with a Helix technology to log into our servers. That way there's nothing floating over the net. And that's what makes it attractive for businesses because businesses have clients that use the typical apps that we're not going to name here, that have been compromised on a daily basis, and now they can communicate with a client without compromising themselves or the client data. LYNDSAY: That's a lot of information right there out of the gate and it's so useful as well. Now you are eyeing a massive US market where trust in big tech is, you know, it's cratering. So tell us what gives secure the edge to through in a space crowded with privacy washing players. ALAIN: So one of the thing is we were the first privacy enthusiast, the first privacy application that offers a gamut of solution. We have our own infrastructure. We don't use big tech because that way we can keep the Swiss data privacy laws. So we have a gamut of solutions. We started two, three years ago to really push this. We spend a lot of money into R&D and marketing, and now we have a name for ourselves. It is Swiss. I mean Swiss is synonymous with privacy and we have our features. So we're able to make a dent like that. And we have key partnerships that we have signed on and others that we are bringing on board at very high level of corporate and government in the US. LYNDSAY: So let's actually lean into that Swiss advantage just a little bit more. So why does the Swiss hosted matter so much right now? And basically how much of a moat does this create secure against US-based competitors? ALAIN: Well, first of all, if you are based in Switzerland, and if you use a US cloud solution such as AWS, Microsoft or Google, you are still subject to what they call the Cloud act. That means that as long as you use a US infra, you're subject to that law under subpoenas, even if you're in Switzerland or you could be in Canada or in Germany and have your own data privacy laws and residency laws. We use our own infrastructure that's housed only in Switzerland because we don't touch the cloud system. The US one, we're able to comply a hundred percent with the FADP, the Swiss law. That's already something that most companies won't do because today, LYNDSAY, most investors are investing in data mining and big data. Nobody's interested to get a customer for 20, 50 bucks a month when you can make a few thousand dollars a year per user on their data. So if I'm a young entrepreneur and I go to you for millions of dollars to build my app and my system, the first thing you're going to do is say, we're going to hook up on AWS, we're going to try to monitor that data, data mine, and do a big data system. LYNDSAY: Big Tech is basically the landlord for half the so-called secure apps out there, like you've mentioned. So how big of a differentiator is it that Sekur owns an entire infrastructure? Like for example, the Signal scandal. Let's talk about that a little bit. ALAIN: Well, we have four things that are distinctive from others. First, we're hosted in Switzerland only. We don't use open source coding. That's a thing that most companies use, 95% of them. That's where most of the hacks happen as well. We have our own equipment, our own proprietary machine. And we also don't put AI into the communication tool. That's a huge thing because today, I mean, AI is everywhere. You can't go on a conference call without this little AI thing next to you. You can't send an email on one of these famous two services that I can't name that doesn't have AI in it. So AI is basically a data siphon system. So what happened at Signal is this, it's either it was intentional, somebody went in there or it was inadvertent, somebody was added. We're not here to make a judgment. What we are here to say is that with our a secure messenger, we would've eliminated both scenarios. The very fact that you don't even have a phone number and you communicate outside of the typical telecom system renders you invisible. This is our mission, is to render people invisible and protect themselves from hackers and other intrusions. And that's why we're launching our enterprise and premium VIP solution that will go to diplomats, it'll go to C-level executive, high net worth, government officials, and others because they have physical security, but they still communicate on these apps or that email that's compromised on a daily basis. LYNDSAY: You mentioned, everyone is slapping AI power onto every product nowadays. I feel like, you know, when we go in a store, there's AI, when we go online, everything has AI nowadays and you're going the opposite way. No AI, no data mining. So why is secure betting against the AI rush so much? I mean, how does that resonate with the customer base? ALAIN: Well, our customers love it because we have always gone against the trend in terms of intrusion. So this is the next thing is not to put AI in our communication tools. If you need to look and research something and AI helps you, let's say for customer service, I think that's fantastic. But AI shouldn't be into your system of communication because you don't know where that data goes. Well, we know it goes to Google, Microsoft or Amazon, and at the end of the day, AI is anti privacy. There was an article not long ago two and a half billion Gmails were hacked with AI. And somebody is asking me, well, how come your system is better? Because we're off grid. We have never been part of the system, we have never used open source coding and we have never hosted on the main platforms. So if you're a completely off grid and invisible AI doesn't want to bother with you, they're going to go with the systems that are easy. So every Google search, every email, every Microsoft this, every browser. So we're actually, if I may extend our vision here a little bit. We're in the middle of a fundraising as well, and one of the thing that we're going to complete is our voice and video encryption where it would be about, I think by the end of the year where you can call someone without dialing their number, you'll be able to go on a video conferencing tool without having AI siphoning the data. And in 2026, our goal is to build our privacy browser, which will also protect you from clicking on these malware and fake links because AI is going to sophisticated itself even more. So that's kind of the next step where we can complete the communication circle and protect everyone from browsing the wrong thing and other things as we just discussed. LYNDSAY: I was going to ask you too what should investors be looking out for in the coming quarters? Is there anything else you'd like to mention? ALAIN: Yeah, so we're basically going to launch our enterprise solution this quarter by the end of June. We're also planning some international partnerships as well. Once we close our funding, we are planning to develop that voice and video encryption, more premium solutions. So we're launching our regular SMB marketing or we're going to go to that premium market where there's literally zero competition. And I mean, even somebody, a regular small business doesn't want to be hacked. So if you're going to offer them something for $20 a month they'll take it if they can help against BEC attack. But the premium solutions are where the big opportunities are because you have C-level executives, targeted people, VIP, the jet setting crowd or government officials. They're the most targeted people and they all use, as we have seen with the Signal issue, they all use these solutions. We imagine that they have very sophisticated tools, but they don't. So we are here to offer that. And those ranges will be about a thousand to $1,500 a year per, per license, which is very cheap when you think about it for a board member and executive. So in the next 12 to 18 month, we're developing the solution. We are also targeting profitability, which is great as a public company. So, you know, watch us and follow our journey. LYNDSAY: Again, that was Alain Ghiai, CEO of Sekur. Now you can learn more about them on their website at and you can find them on the CSE under the ticker symbol SKUR. Join the discussion: Find out what everybody's saying about this stock on the Sekur Private Data investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
The Market Online
12-05-2025
- Business
- The Market Online
Profitable all-in-food tech co. plots M&A growth strategy
Eshbal Functional Food Inc has recently listed on the TSXV and the company with profitable operations in Israel is now looking to expand into the fast growing, gluten-free North American market with an ambitious M&A strategy. LYNDSAY: My first question is there, you have said actually many times, there is no one like us, so I'd love to hear more about that and what makes Eshbal so different? TOMER: Perfect. I'll tell you what I think it is. First of all, we're an all-in-food tech company, and have been doing this for many years, everything from production, development is done in-house, which gives us full control and ensures we keep the highest standards for our products. Second, our focus is on Better For You Foods with a strong emphasis on gluten-free solutions. We work to make products that taste and feel like the real thing, but without compromising on nutritional value or taste, which are very important. Third, we know from experience that we're not just making food, we're actually helping people with real dietary needs and that's why you focus on creating solutions, not just products. And last, I would say unlike most food or biotech companies on the TSX Venture, which are often still pre-revenue or very early stage, Eshbal already has significant commercial activity with nearly $12 million, US dollars which are about 16 million Canadian dollars in revenues. And that makes us one of the few companies on the exchange with real sales, real operations and a strong foundation for growth. LYNDSAY: Well, you've given so many positive facts, so why go the M&A route? What are the advantages? TOMER: For us, M&A is a way to grow faster and smarter. Instead of building everything from scratch, we look to acquire companies with strong products, production, distribution, or market connections giving us a shorter time to market in quicker scale and is how we grew the business so far, and it's how we plan to keep on growing. In fact, I joined Eshbal through a successful acquisition back in 2016. We believe we know how to find the right fit and create value quickly. LYNDSAY: Maybe you can then walk me through the kinds of companies you're targeting and what makes them so appealing. TOMER: We're actually targeting two main types of companies. The first one is what we call brand companies. These are companies with existing sales market reach or distribution networks, companies that already have a customer relationship and know how to move product in North America, which is really important. The second type, we call operational companies. These are mainly manufacturers with proven capabilities, especially in gluten-free or better for you foods. This will help us create a footprint in the market, and the appeal is that we don't have to reinvent the wheel. We can plug into what already works, bring in our products and scale together, find businesses that create synergy where one in one equals three, that will help us promote our business quicker. LYNDSAY: We know that you are in Israel and we also know that running a business in North America is a lot different than Israel. So how are you getting ready to navigate those cultural differences? TOMER: There's definitely a cultural difference, things like communication style, decision making, and how relationships are built. That's why one of the first thing we already started is building a local team in North America who understands the business, business culture, and can help us bridge that gap. On the product side, however, especially in gluten-free, we actually see a lot of similarities. The needs are very close and we actually see a strong fit. LYNDSAY: What should we be watching for with Bel in the next quarters? TOMER: In the coming months, we're moving into commercial production in North America. We've already run successful tryouts with local co-producers, and we're now preparing to launch our gluten-free products through them. At the same time, we're starting to roll out our marketing strategy to introduce the product to the market. And the most exciting part on the M&A side, we're in active discussions with several potential targets and our goal is to complete at least one within the next few months. You can find Eshbal on the venture exchange trading under the ticker symbol, ESBL, and their website is Join the discussion: Find out what everybody's saying about this stock on the Eshbal Functional Food investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
The Market Online
09-05-2025
- Business
- The Market Online
How Web3 Will Fundamentally Reshape Finance
Spirit Blockchain Capital (CSE: SPIR), a company that's building the bridge between traditional finance and the rapidly evolving world of blockchain, Spirit gives investors an accessible way to actually participate in Web3 opportunities without having to manage the complexity that usually comes with it. Lyndsay Malchuk recently caught up with Spirit Blockchain's CEO, Lewis Bateman for more insights. The following is a transcription of the above video, and The Market Online has edited it for clarity . LYNDSAY: You have a deep background in bulls, capital markets and digital assets, and you bring such a unique perspective on where the future of investing is heading. So first off, welcome back, and I just know this is going to be a great conversation. LEWIS: Thanks Lindsay. I am excited to talk about where we are today and where we plan to be in the future, and what is really, what is really transpiring between the traditional markets, call it tradeoff and, and defy the digital markets. And I'm looking forward to having that chat. LYNDSAY: Absolutely. Let's peel back just the first layer for those who might be newer to the space, how does Web3 actually work? And another point, how does it work in relation to blockchain technology? LEWIS: Well, what Web3 three really represents is the next evolution of the internet. It's a decentralized user-centric model built on blockchain tech technology. Blockchain provides the foundational infrastructure, it's immutable, it's transparent ledger where data value and digital ownership can be recorded without any reliance of traditional, centralized authorities. In Web3 users regain control of their data, their assets, and their interactions and Spirit is part of that shift, leveraging blockchain not just for cryptocurrencies, but for real productive asset management where they maintain, or the users maintain, greater transparency, greater efficiencies, and greater ownership. And you're seeing that across multiple sectors. The use of blockchain, you're seeing that with lots of large multinational and large ownership businesses like BlackRock. And we see ourselves very much fundamentally part of that development. LYNDSAY: Okay. So just from my understanding, which is probably quite little in the blockchain space, what we normally do is we track from beginning and then, we track more towards the end. So a blockchain there's places within the actual cycle where you actually can trace it all the way back throughout that process. Am I correct? LEWIS: Correct. Every single chain, every single block is ledgered from the day of the existence and the day of the release. And you can track that movement of value or information on each and every single block and in each and every single exchange between two counterparties. And that's what's really unique. And it's open, it's transparent, it's available to anyone who has the understanding and the wherewithal to validate that infrastructure. LYNDSAY: You're often called a pioneer and tokenized asset management. What do you think sets you apart in this space? LEWIS: Well, I think there's a couple things. One, I think it's our management team who've got years of experience and understanding in the marketplace, who've spent time in large institutions that know the traditional markets, but have taken all that knowledge, extracted it, and saying, okay, these are the things that we want to carry forward, and here's the things that we know we need to make better. At Spirit, we saw the early adoption or the early understanding of a kind of asset management from the transition of mutual funds to ETFs. And now this wonderful world or word that we're using, tokenization. It's the ability to represent ownership of real-world assets or digital assets on chain or on a blockchain. And it would fundamentally reshape finance. And this is even what Larry Fink is talking about. Our innovation lies in between that institutional grade, regulatory structure, regulatory compliance structure that makes tokenized assets really accessible, productive for investors. We've designed a platform where assets are not only just tokenized, not only for novelty like the NFT markets, but are actively managed for yield, liquidity, and long-term growth. We're bridging the best of traditional asset management with new capabilities that Web3 offers. And we're giving clients the confidence, the transparency, and the performance they expect and with far greater flexibility and, and efficiencies. LYNDSAY: When it comes to generating strong income strategies, can you actually walk us through what you're doing specifically and why go this road instead of just investing directly into cryptocurrency? LEWIS: Well, I think cryptocurrency as a whole has a, a stigma. People think it's complex or that they have to memorize some very secret code or password. And then if they don't remember that they're lost forever. The reality is that we come across not only understanding that marketplace or that software, or that solution set, but we also know that we want to bring in less speculation and more strategic asset management. And while cryptocurrency investment is highly volatile and dependent on market timing, Spirit uses a diversified approach. We're utilizing not only our capital from a proxy perspective to the underlying crypto assets, but we also believe in income generation and capital preservation. And so our strategies not only involve staking, yield farming, real world asset tokenization and liquidity provision, we optimize that through our own proprietary intellectual properties, algorithms and risk management protocols. And we use that so that we have better performance. We use that to price protect and to limit the price swings. You know, we've seen obviously big highs and big lows just in the last few months, and we're focused on productive deployment of capital that earn a steady return. We also believe in this growth segment of this overall market. And we aim to bring stability and predictability under our regulatory guidance that we have on our prospectus, which ultimately I think lowers volatility. LYNDSAY: Let's take a step back here then, and what do you see as the biggest roadblock right now for both institutional and retail investors when it comes to adopting Web3 and blockchain? LEWIS: I think that's a very interesting conversation to have. There's lots of things that are happening in the marketplace overall, both globally and macro. But the real major roadblock that we think are the ones that clients are asking for is trust. And we think having this public domain access is really pivotal, and regulatory clarity, both regionally and globally. Institutions in particular are asking for robust frameworks. Clear compliance, pathways and operational transparencies, and both retail and institutions are often faced with complexities. And although Web3 seems intimidating with the user friendliness of an interface, it requires clear information and clear methodologies. We think we give that to the marketplace. We're building, an institutional grade solution while creating hopefully simpler, more accessible on-ramps for both retail and institutional investors while maturing with the overall market, the ecosystem. And we think we can lead in this in a very credible way. And I also feel impassioned from an educational perspective of taking our traditional knowledge and showing what the barriers are and continue to make sure those barriers are knocked down with our implementation of our services. LYNDSAY: Why is now the right time to invest in Spirit? What do investors stand to gain by getting in today rather than waiting to see how things unfold? LEWIS: First and foremost, I think we are at a critical time. You're seeing a lot of change globally. Web3 adoption is really at its tipping point. You're seeing more and more financial institutions using it as its own core infrastructure to build. Regulatory frameworks are emerging, you're seeing the change of even the SEC and a lot of regulatory bodies coming to an adoption, understanding and a requirement. The greater the masses take control of their own assets, the more the use case becomes relevant. And Spirit is positioned at the forefront of this global shift. And early investors gain that exposure not only through a high hope, and we believe in exponential growth of this tokenized asset economy, but It also it benefits from first mover advantages. We have our own proprietary technology, we have great strategic partnerships, we've seasoned leadership and by investing now, you get the upside in a very early nascent marketplace while shaping it and helping that future landscape. Spirit Blockchain's website is and you can find them on the CSE under the ticker symbol, SPIR. Join the discussion: Find out what everybody's saying about this stock on the Spirit Blockchain Capital investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
The Market Online
05-05-2025
- Business
- The Market Online
Base US Gulf Coast natural gas assets with significant growth opportunities
Southern Energy Corp., a growth focused natural gas producer making waves in the US Gulf Coast has significant growth opportunities with new wells to bold capital moves. Lyndsay Malchuk recently caught up with Ian Atkinson, President and CEO to unpack more of that. LYNDSAY: Southern Energy's core story has always been about value in overlooked basins, but let's fast forward to this year. I mean, what changed in your DNA? For investors not up to speed, how would you define Southern today? Are you looking for opportunity, are you aggressive? Or are you something else entirely? IAN:Good question. You know, and I would start off with people who maybe don't know us well is our DNA has not changed since inception. You're right, we are operating in the US Gulf Coast area. So much different than Canadian companies that some of these viewers and listeners might be more accustomed to. Our strategy has always been to consolidate and develop assets in these areas that have been largely overlooked and frankly, historically undercapitalized by US companies, which even to this day remain very focused on developing shale plays like the Permian and the Marcellus. Maybe to use one of your adjectives, Lyndsay, I would combine two of them and say we're opportunistically aggressive. You know, we've shown we can be patient through poor pricing like we've had in the last 18 months. And we've also shown the markets we can be aggressive like we were back in late 2022, early 2023 when gas prices were $7, $8, $9 US per BTU. We do have the base assets with significant growth opportunities embedded in them. And at the same time, we're always looking for that right fit for that step function change in scale through an opportunistic acquisition. LYNDSAY: Now you're drilling in the heart of the Gulf Coast that we mentioned arguably one of the most strategically placed in premium price markets in North America. So is this a no-brainer or are there risks here that others aren't even talking about then? IAN: It really is the heart of the commodity space in North America. You want to be at the market like this is. I would say it was certainly a purposeful decision to set up shop here in the US Gulf Coast. You know, the combination of that premium commodity pricing and underdeveloped assets in this basin do make it a no brainer for a company like us, which is growth oriented. To expand on that a little bit, due to our assets location and owning the majority of our own infrastructure, we receive sometimes a 10% to 15% premium to NYMEX for our natural gas pricing, which is quite unique, especially when you compare it to the Western Canadian Sedimentary Basin and most other basins in the US where they receive sometimes a quite large discount to NYMEX for their pricing. Also, this jurisdiction is very interesting for us because it is where the LNG or the liquified natural gas export business has really taken off in the US. They have the ability right now to export 17 billion cubic feet a day of liquified natural gas, and we'll be reaching over 35 BCF a day in 2030. So, a massive increase in export scale, which makes the US the largest exporter of LNG in the world and obviously when we look to the future, making a very supportive case for the future of US gas pricing and especially in the area of the US Gulf Coast where we are operating. LYNDSAY: Now. Let's peel back your project just a little bit further. You just closed a $7.2 million equity raise. Tight market, shaky sentiment where tariffs are the topic of this discussion across the board. What gave you the confidence to tap the markets now and more importantly, how should investors read that move? IAN: It always has to be a very calculated decision for companies like us to go into the equity markets because they are tough. But we can see the supply and demand dynamics for natural gas are fundamentally changing in the US and I think a lot of our investors can as well. Our assets are located within the US which means obviously they're not part of any tariff discussions compared to other countries. Canada being one of them. And the equity raise timing for us was 100% to be offensive. Initiating our growth again heading into summer where we typically see higher premiums for our natural gas pricing than we do in the winter. As an example, the summer coming up right now, the gas prices are trading at US$3.70 for MMBtu. Our basis premium is about $0.50 on top of that. So, we're selling gas into a US$4.20 US market, which is equivalent to about a $6.00 Canadian price if you compare it to the Canadian base. So, we certainly have that opportunity for us here in the summer and frankly why we hit the trigger on the equity raise. LYNDSAY: Let's talk about your wells. You've got three new ones online soon, but soon can actually mean a lot of things in this business. So can you give us a real world timeline here? IAN: Yes, and for those who don't know the company, that aren't familiar. We were in the middle of a major capital program that we paused back in the end of 2023 because of the fall of natural gas prices. But what that did leave us with these three horizontal wells that are drilled and ready for completion at one of our large natural gas assets named Gwinville. A little bit of a history lesson, Gwinville has been historically one of Mississippi's largest producing gas fields. It has produced over 1.2 trillion cubic feet of gas and over 12 million barrels of oil. What we are redeveloping here at that field is three zones that have up to 600 to 700 billion cubic feet of remaining gas. So a lot of gas when you look at the context of a small company like ours. But more succinct to the timing, we are planning to complete this first well, in late May. We have a date with the pumping services already booked, and that means we'll be bringing this well into production here in early June. The plan from there is to complete the next two horizontal wells, kind of one every three months, which is more around our facilities capacity, et cetera. But investors should expect to see a steady stream of results that will actually grow our production and cash flow and prove up over 120 remaining locations at Gwinville. Also in the program this year, and part of this equity raise was we are planning to drill into some of our higher liquids weighting assets outside of Gwinville starting in Q3 and Q4 of this year. LYNDSAY: So, you've really ramped up on financing then you've got the wells ready to go and you're sitting in a prime pricing corridor. So what's the real upside here? What can investors genuinely look forward to in the back half of 2025 that isn't just baked into the share price already? Ian: You know, historically people look back at our share price chart, it's been up and down, and we tend to trade very succinctly with the price of natural gas. So we have shown the markets that the torque we have to increasing gas prices. But on the flip side of that, as gas prices fell, so did our share price. So for example, if you look back in 2022, 2023, our shares were trading over a dollar and as gas prices increased, so that $5, $6, $7 and in that year we were named the best performing stock on the TSX Venture increasing from 10 cents per share to over a $1.40 per share at its peak. You know, I do feel we're in a bit of a better position now even than we were back in 2022 with these wells that we've discussed here today that are already drilled and waiting for completion so quicker for us to bring them into production and cash flow. So I think we're poised for a comeback after 18 months of what have been painfully low gas prices and very little capital spending. We're very excited to be back on the growth trajectory now. Again, that was Ian Atkinson, President and CEO of Southern Energy. You can learn more about them over on their website at and you can find them on the Venture under the ticker symbol, SOU. Join the discussion: Find out what everybody's saying about this stock on Southern Energy investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
The Market Online
01-05-2025
- Business
- The Market Online
Advanced copper project in the US ready for construction
With one of the few fully permitted copper projects in the United States, Highland Copper ( (OTC:HDRSF) is advancing its flagship Copperwood project in Michigan's Western Upper Peninsula, a near-term development opportunity with 3.7 billion pounds of contained copper and an initial 11-year mine life. The project stands out not only for its size and scalability, but also because it's fully permitted, a rare achievement in today's regulatory environment. Backed by institutional investors and supported by state and local stakeholders. Highland is aligning its development timeline with a broader push for US critical mineral independence. Highland Copper, CEO Barry O'Shea joined Lyndsay Malchuk in studio to discuss further. LYNDSAY: Now, Copperwood are fully permitted and are technically advanced, so what are the remaining pieces that need to fall into place before a construction decision is made? BARRY: Well, I'm actually going to start with some really good work that we did in 2024. We did our initial site impact. Really important to turn the site from a greenfield into a brownfield. It had some really nice byproducts. We started working with local contractors, really engaging with the local unions and working with the state authorities. So really gaining credibility in the region as we've done over the past many years. So with that we stepped into 2025 and we're really turning the project with something that's been sitting at feasibility level for a period of time to a project that is truly ready for construction. In January of 2025, we initiated detailed engineering alongside our partner, DRA Global. With that we did some metallurgical drilling in February to support a MET test program. We really think that ultra fine flotation technology can have a really significant boost to the economics of the project. Through 2025, we'll be advancing our engineering, looking to de-risk and optimize the project, prepare ourselves for project financing, and ideally a construction and decision in 2026. LYNDSAY: That's a big year in 2024 and now all that coming down the pipeline. That's pretty exciting news for sure. BARRY: Copperwood at the end of the day is one of the most advanced copper projects in the U.S. and it's time to build it. LYNDSAY: Your model actually shows significant upside with a rising copper price. How is the project positioned if the copper market doesn't go the way it's supposed to go in the near term? BARRY: I think Copperwood is robust at a whole series of copper prices. At a $4 copper price, that's actually the price that we did our feasibility study at, it shows a good robust project. At $4 it's 170 million NPV and an 18% IRR. But really where you see the torque is movement to $5. That's a 25% increase in copper price and it gives rise to a 300% increase in net asset value. Naturally we're sitting at around $4.50 or $4.60 today. So as you move along that curve, just incredible leverage. But we're not only depending on copper prices, there are other things that we can do. I mentioned the metallurgical test work to improve the grade recovery curve. There is significant capacity to add mine life to the project and all of these things will continue to progress, so that it's our execution alongside the copper price that really adds value to the project. LYNDSAY: There is strong momentum and community support right now with state and federal focus on critical minerals. What's your prospects for securing government funding? Barry: I'm going to start with that local support, I think it's really important. I think everybody knows you need to be welcomed in the exact community that you work in. It's the Western Upper Peninsula, it's a historic mining district, there's a real nostalgia and love for mining. In the recent six months we've gone out and received resolutions and support from 22 local units of government, from counties to townships to municipalities. It really demonstrates that there's a true desire for the project and with good reason. There are a whole host of things that this project will bring to the local area. Alongside that, there's obviously incredible bipartisan support at a state level. And of course, with the recent executive order at the federal level, the federal conversation on urgency for critical minerals and specifically copper has really intensified. So from local to state to federal, we're just feeling very welcome. Copperwood really is a project that needs to be built in the near term. In terms of financial support, you might know that the state of Michigan is considering giving us $50 million. That project nicely moved through the Michigan Economic Development Corporation. It was approved by the Michigan Strategic Fund, and it's also been approved at the House, at the legislative level. It is now at the Senate Appropriations Committee and I will acknowledge we've had some challenges there. And that's okay. At each level, different units of government are looking for different levels of understanding of the project. So we continue to educate the Senate on the merits of the project. And there really are many, it's quite a generational opportunity from an economic perspective. Of course, it brings critical supply of copper into the U.S., and I think most importantly acknowledging that the state of Michigan has very environmentally strong regulation. It's a project that can be built well for the local community sustainably, and for economic strength as well. LYNDSAY: You do have some institutional backers like your largest shareholder, Orion. How do you see their involvement in the strategy when you're moving from development into production? BARRY: So, first of all, through the early stages of development, it's really important to have strong, loyal shareholders like Orion. So we benefited from that. Orion have always seen, I think, the value of U.S. domestic copper production, and that's really playing out as we've seen over the past number of months, so we think the timing is right. And again, having Orion there, they've demonstrated on other projects real creative financing opportunities across the value chain from equity to debt and other pieces. We think that they're going to play a strong role as we continue to move forward. And of course, that's going to be important as we consider project financing over the next year. LYNDSAY: Okay. So if we further into that a little bit, with a large share count and more capital needed to move into production, how are you thinking about managing dilution and long-term share value then? BARRY: Sure. So let me start with the share account. Actually, we do have just over 700 million shares outstanding. That is something that we'd actually like to take care of to some degree with a share consolidation. You probably know to do a good share consolidation you need a strong environment behind you, both macro and of course execution from a company perspective, and as we've laid out, we think there's going to be good opportunity for both of those through 2025 and ideally we'll roll back the shares. I think that'll make the shares just more reasonable, certainly from a U.S. retail perspective. In terms of considering a project financing, naturally we need to move our market cap along to be able to maintain appropriate dilution as we think about project financing, but you'll also know that to do an equity financing, it's at the tail end of a whole host of catalysts. We'll have worked through our engineering, we'll have understood the outcome of our metallurgical drill results. Ideally, we'll have had visibility, some of the state and federal funding opportunities that we have, we'll understand where the debt financing has landed, and all of these things will bring increased viability and of course, share price appreciation before we consider that final piece. Dilution of course, is important. We want to manage our shareholders as we work through this process. LYNDSAY: Give us three points why investors should be looking at you right now. BARRY: I think Highland Copper is one of the most advanced copper development assets in the U.S. at the moment. As a starting point, we're fully permitted, I think that is the key building block as you think about advancing into true construction. Number two, we provide really incredible leverage to changes in copper price. To give you a sense, a 25% increase in copper price from $4 to $5 gives rise to a 300% increase in net asset value. And lastly, it's our local support. We have 22 resolutions of support from all local units of government, municipalities, townships, counties. It's really reflected that we're welcome in the region. These are all the things that are the building blocks that, that make a project truly construction ready. So through this year, we have a host of catalysts starting with detailed engineering. We're doing MET work to optimize the project, consideration of stepping into a project financing and really getting ourselves ready, to develop our project in 2026. Again, that was Barry O'Shea with Highland Copper Company. You can learn more about Highland on their website at Join the discussion: Find out what everybody's saying about this stock on Highland Copper investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
