Learn More about K92 Mining Inc: FutureMoneyTrends.com/GoldIPO
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TSXv: KNT, OTC: KNTNF
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TOPICS IN THIS INTERVIEW:
02:00 How BREXIT is affecting the Gold Sector & World Economy
05:10 How great will this Gold Bull Market be? Once in a Lifetime
06:50 How K92 Acquired a Supreme Asset from Barrick During Bear Market
12:00 Gold Production to Start Soon with K92...Just Months Away!
(00:00) Daniel: Greetings, and thank you for joining us at FutureMoneyTrends.com. I’m happy and thrilled to have this interview today. You know, I get so many emails from our subscribers with “thank you” notes, and people… I mean one guy, if you’re listening right now, he flew all the way from San Diego California to meet me in Houston just to say “thank you.” The money people are making in the precious metals sector is just incredible. It’s a once-in-a-lifetime opportunity, because of how bad the bear market was and how great the fundamentals are. And a lot of people listen to this show and made a lot of money with Brazil Resources and First Mining Finance and First Majestic, and I believe I have a company that is of such high quality, with such a great management team, I truly personally have no doubt that this is going to be one of those type of plays. And we’re openly on our Future Money Trends letter referring to it as a core position in our precious metals portfolio, and you’re hearing about it just 45 days outside of an IPO, so I mean you’re really hearing it at the very, very early stages. Gold production is going to begin very, very shortly here, in the summer of 2016. Our guest today is the president of K92 Mining. It trades on the TSX-Venture under KNT and on the OTC-US side under KNTNF. Bryan Slusarchuk. Bryan, thank you for joining us.
(01:35) Bryan: Daniel, thanks a lot for having me on.
(01:38) Daniel: Well, hey, I really appreciate everything you guys have done. I mean just watching everything that we thought when we started to enter this trade in May… late May, you guys are just over-delivering on all fronts. So I do want to talk about the company, but before I do, I can’t help but ask you about Brexit. You travel the world. You run a gold company. What are your thoughts on a post-Brexit world? What has this done for the gold sector? Because we were already turning into a bull market.
(02:13) Bryan: Absolutely, Daniel, and I think you hit the nail on the head that we were already making that turn from a real bear market in gold and silver to a very bullish environment. And that’s the environment that we’re in now. Brexit occurred and it had some impact, there’s no doubt, in terms of putting some more eyes on gold as a natural hedge, but the uptrend was in place prior to Brexit. And what I find interesting is that the people now that are out there talking about the reasons gold is moving higher are the people in general that have been naysayers for the last several years. And what you hear from people, if you hear people that talk about Brexit as being the big catalyst, or some sort of global uncertainty in the Middle East being a catalyst, or a socioeconomic uncertainty in North America being a catalyst, but the fact is that we’re in an environment that gold absolutely makes sense as a hedge against all of those types of situations, but with the overriding scenario that we faced, whereby governments around the world and central bankers around the world have put us in a precarious spot due to trillions of dollars of deficit spending fiscally, and the monetary policy that involves printing, printing, and printing more money to try to get ourselves out of the mess globally. And I think what people are realizing is that this just isn’t going to end well when you have negative interest rates and a fiscal regime that has just blown through their budget fiscally, you’ve got that combination of monetary and fiscal policy that has just created a tinderbox and that’s what put into place the long-term uptrend. I think Brexit is not an end here. It’s just the beginning of a series of global events that could really destroy wealth on a global basis. And I think we’re starting to see smart money gravitate into gold, which, for thousands of years, has been the best hedge out there.
(04:52) Daniel: Now, you guys, K92 Mining, have what I think is probably the best story out in the sector right now, where you essentially stole… I mean, I don’t want to make anybody feel bad on the other side, but I mean, the property you guys got, the mine you guys got at the bottom of the bear market, literally, the bottom of the bear market from Barrick, is incredible. What are your thoughts right now… you’ve got the mining sector completely turning around. So people can fully understand this, because I want them to really understand the opportunity we have here… how bad was the bear market and what are the signs you’re seeing on how great and spectacular this bull market is going to be because of how bad it was? I mean, I just want to make sure people don’t think that this is something that happens every five years. What happened in the last 4 or 5 years and what’s happened now is extremely significant, right?
(05:48) Bryan: Absolutely, Daniel, and as your listeners will know, you’ve got one of the best track records out there in this title change in market sentiment, you were there early, you put attention on companies like First Majestic early, you called this market. So for you to point out K92 as just the top situation, you know, it is very flattering. And I think that you also really nailed it when you talked about the fact that this isn’t a once-in-a-5-year opportunity, it’s not a one-in-a-decade opportunity. The gold market right now is at a crux whereby I think that we can say it’s a once-in-a-lifetime, and definitely a once-in-a-career opportunity. And it was so ugly out there for the past 5 to 6 years in the gold. People don’t realize how bad it was. Barrick gold, the world’s largest gold mining company, was $13 billion in debt, they were bleeding red ink all over the world, the losses were piling up, and Barrick said to their shareholders “we will exit any non-core asset. We will regionally exit Australia, Austrial-Asia, southeast Asia. We will liquidate our assets and get back to our core in order to reduce debt.” Now, Barrick was saying this at a time that nobody wanted gold assets, so they were a seller that very much needed to sell, and on the flip-side, we were one of the only groups out there looking for gold assets at the time. And what’s unique about the team that we purpose-built for this asset is that the team that acquired it had a track record of success in research, startups, mergers and acquisitions, we built the team around some of the best technical people in the industry, so we were able to finance this project privately. We raised in excess of $22 million, advanced it privately when the gold market was in horrible shape, and because of that, shareholders now entering the K92 situation are benefiting from that 12 to 18 months of hard work privately, the ability to privately fund the development of the project, and now, as you mentioned, we’re a near-term gold producer, with a high-grade gold asset, very significant size of resource, expansion potential, and this deal is being led by people such as Tookie Angus, who is the chairman. You know, people might remember Tookie for being one of the founding directors of Ventana Gold, that sold for $1.3 billion in the last good gold market. Ian Stalker, the CEO: Ian sold a company called UraMin. After it started off as just a micro-cap stage, sold UraMin for $2.5 billion in 2007. These guys have been around stories that have started from a micro-cap level and have moved to be that type of takeover target. Now, at the same time, technically, the team is just superb. Ian Stalker was the vice president of Gold Fields when it was the 4th-largest gold producer in the world. Doug Kirwin, on our team, was credited with leading the discovery of the monster Oyu Tolgoi deposit in Mongolia. Alex Davidson, and I’ve always got to point out Alex because… Daniel, I think this is just so telling and so indicative of the opportunity, Alex Davidson was the executive vice president of Barrick Gold, in charge of exploration and corporate development worldwide when Barrick Gold owned the asset that they sold to us. Within days of K92 acquiring this asset from Barrick, Alex Davidson joined the K92 team. And I think that’s just really indicative of the upside that Barrick saw. And remember, Barrick purchased this for $141 million, U.S. dollars, in 2007, subsequently, invested well over $100 million advancing it, and we were able to come in after all of that investment and move into what was a real turn-key situation, whereby we just had to do a bit of refurbishment, some enhancement of the mill in the mine, but we had all of the infrastructure in place due to Barrick’s work. There’s existing underground development, $100+ million invested in advancing this asset after the $141 million purchase, so we’re very fortunate, and there is no doubt that only an asset of this type of quality could have attracted guys like Ian Stalker, Tookie Angus, Doug Kerwin, Alex Davidson, etc.
(11:56) Daniel: Bryan, one last question before we let you go. Shareholders and new investors who buy today… what can their expectations be for the development of the company and gold production over the next, let’s say year?
(12:12) Bryan: Sure. So, based on all the work we’ve done over the past 12 to 18 months, we are targeting near-term, high-grade production, we’re targeting to be in the lowest quartile of the industry in terms of cash costs per ounce. So far, the team is ahead of schedule and under-budget, which is a great combination, as to this gold mine restart, and I would expect that we would have, in August, the mine, the mill restarted and in full operation.
(12:51) Daniel: Incredible. Alright, Bryan Slusarchuk, K92 Mining, everybody. Check them out at the TSX-Venture on KNT or the OTC side under KNTNF. Bryan, again, thank you so much for your time and man, best wishes to you guys. You guys are doing great over there.
(13:13) Bryan: Thanks so much. We appreciate it.