Interview with Michael Hudson, CEO of Mawson Resources (TSX: MAW).
Mawson Resources Limited is a 'leading Nordic exploration company,' focussed on the flagship Rajapalot and Rompas gold projects in Finland.
Finland? It's certainly not a jurisdiction that gets discussed often on our platform, but we were interested in the operational factors at play there. Hudson claims there has been an immense amount of historical drilling conducted in the Nordic region. He states that Finland itself has developed impressively since the early 2000s, and now solid infrastructure with cutting edge technology and good mineralogy. Gold mining operations in Finland have certain differences to the rest of the world, and Hudson expands on these. Permitting isn't necessarily easy.
We then took a look at the business plan and team behind Mawson Resources. The project is the lovechild of a couple geologists wanting to make an entrepreneurial play. Investors will want to know how this plan has evolved over time, and how much Hudson and his team have learned about mining gold along the way. Hudson himself spent a "decade with a major company," and this has given him some valuable experience, including commercial acumen. Hudson states the business model revolves around derisking every possible problem for investors. This involves frugal gold geology; we liked the message that Hudson has no intention of wasting a dollar of investors' money on anything that doesn't cut the geological mustard. Let's see if he delivers on it.
How will Hudson and his team add value to the gold explorer, because the company has been fairly neutral so far? The drill numbers look good right now, but the market needs more. Hudson states that it is difficult to create value at all points of the gold cycle. However, by adding asset value. Mawson Resources can be a profitable endeavour for investors. Hudson and his team need to source investors who understand this, articulate the story effectively, and seal the deal. There is a lot more drilling to be done as the resource size creeps towards 1Moz and 45km.
Hudson touches on Mawson Resources' other projects in Australia, the U.S, and another gold-cobalt project in Finland. The underlying theme throughout these projects is entrepreneurship. While this gives investors the potential of an exciting upside, this is mining, and there seems to a certain degree of risk in relation to the company. Investors should review their own risk tolerances before considering Mawson Resources.
Hudson states that the end goal for Mawson Resources will be dictated by where the market takes it. He refuses to rule out being taken out by a larger gold producer, or himself and his team taking the gold project fully through to production. This quite nebulous answer doesn't necessarily give investors the answers they will demand.
In terms of cash position, Mawson Resources currently has c. CAD$5M, but this is being spent "quickly." Hudson expects cash reserves to have been depleted by the drill program to around CAD$2M by May, which would be enough for operational costs. Hudson remarks the company would need another CAD$15M to reach a 2Moz+, fully-permitted target in Finland. Investors will hope Hudson is keeping a keen eye on dilution.
Interview highlights:
- Company Overview
- Mining in Finland: Ease of Licensing, Permitting, and Working in Conservation Areas
- Conventional Money and Financing a Finish Project
- The Background: Team Experience and Business Plan
- Growing the Story and Creating Value: How are They Doing it?
- Drilling Done and To Be Done: Getting Close to the 1Moz
- An Overview of Mawson Resources' Other Projects
- Entrepreneurial Spirit: A Key Factor for an Exploration Team?
- Focus and the End Goal
- Cash Position and Future Raises
Company page: http://mawsonresources.com/
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