Gillian: This is Gillian Morris, from “The Investing News Network”, reporting live from PDAC 2018. Here with me is Steve Williams, President and CEO of Pasinex Resources, trading under the CSE under PSE. Steve, thank you so much for joining me.
Steve: You’re welcome. Glad to be here.
Gillian: In 30 seconds, can you give us a breakdown of your company and its value proposition to investors?
Steve: Simple, zinc, production, profitability. So, we’ve got a zinc mine in Turkey, in the south of Turkey. It’s now in production. We got 260 people working there. And it’s profitable. We had a great financial year in 2017, and we expect to at least duplicate that in 2018. So zinc story, profitable production.
Gillian: So what are you currently working on?
Steve: Yeah, so, you know in the last couple of years we’ve been building this mine in Turkey, and we’ve now got it to a strong level. Last year, we probably did 25 million USD in revenue, and very good margin. So, now our priority is on increasing our results base and looking for more zinc in that area. So, you know, it’s very much about getting into spending more money on exploration this year. We’re going to go up to three million USD in exploration in Turkey to expand our results base, and to find more zinc in Turkey because we think there’s more to be found. So we’ve got a strong production. Now, we’re gonna expand our results base.
Gillian: So Steve, what makes your company unique?
Steve: Ah, we’re in production. We’re, you know, mining and selling zinc when the zinc price is going up. You know, most people are bringing on and starting to study projects, and, you know, maybe at some point in the future will have a mine. We’re in production now when the zinc price is up. That makes us very unique, and it makes us strong as well. We’re getting cash flow from the mine. We’re able to increase our exploration, as I said. We’ve also just acquired an earning option agreement on a zinc property in Nevada. We’re gonna spend a million dollars on that this year. And it’s all funded, so four million dollars in terms of exploration, all funded from production. So that makes us very unique, I think.
Gillian: So what catalysts are on the horizon? And can you please explain the significance of those to our audience?
Steve: I already said it. I think our plan this year is, you know, we got a solid production base. We now need to increase our results base. We think there’s more zinc to be found. You know, that’s our big driver this year, you know, doing a lot more exploration in Turkey and also now with that project in Nevada. And it’s all about, you know, on the back of our existing mine, our existing production makes us a stronger zinc story. That’s what we’re about.
Gillian: So are there any developments in the market you’d like to talk about?
Steve: Zinc, zinc, zinc, that simple. No, I mean, the big picture is over the last two years, the zinc process strengthened. We’re now sort of around of 1.50 USD per pound, whereas we go back three years ago, we were at 75 cents. So it’s doubled and, you know, it’s very much doubled on fundamentals. You know, there has been a significant drop off in supply on zinc. We anticipate that that position is gonna continue, certainly. I don’t know that the zinc price is gonna continue much higher than it is now, but I think it’s still gonna be strong over the next couple of years. We’re in production, we’re making cash flow. We’ve got the opportunity to increase our results base. So it’s all about the zinc price, and then just this moment in time with zinc. You know that’s the driver, and I think we’re wonderfully positioned just because zinc is strong right at the moment.
Gillian: Well, Steve, thank you so much for joining me today.
Steve: You’re welcome.
Gillian: This is Gillian Morris from “The Investing News Network,” coming to you live from PDAC 2018.