This interview with Brodie Sutherland, CEO of Tocvan Ventures (Ticker: TOC), provides insights into the company's operations, the mining industry, and Sutherland's leadership philosophy. Tocvan Ventures is a publicly traded natural resource company focused on the acquisition, exploration, and development of mineral properties. Sutherland, a geologist by training, shares his journey from a field geologist to leading an exploration company. His career has taken him around the world, giving him experience with various mineralized systems. This experience has given him insight into what makes a project go from exploration to production.
A key takeaway from the interview is the importance of mining for societal advancement. Sutherland emphasizes that the metals his company seeks are essential for technological progress. He notes that many investors overlook the fact that modern technology relies on mined materials. He believes the mining industry is underappreciated and sees potential for more investment in the sector.
Tocvan Ventures is currently focused on gold and silver exploration in Sonora, Mexico. Sutherland explains that Sonora offers a number of advantages including great infrastructure, a low cost of operation, and a fast permitting timeline. He contrasts this with Canada, where permitting can take over a decade. Sonora also benefits from a long history of mining and a local community that understands and appreciates the industry. The local community and talent base are a key part of Tocvan's success, according to Sutherland.
Sutherland describes two main phases of value creation for shareholders: the discovery phase and the mining/production phase. He explains that the company has already achieved significant growth through successful discoveries. He has set his sights on developing projects into producing mines. He notes that Tocvan is also exploring the possibility of a test mine to generate cash and move towards production.
Sutherland’s leadership philosophy is characterized by several key aspects:
Emphasis on local expertise and community involvement: He stresses the importance of building a team from the local community in Mexico. He believes that outside teams often fail because they don’t understand local conditions and stakeholders. He values the skills and experience of the people of Sonora. He notes that many of the company's employees come from a local village with a long history of mining. He is also focused on educating local people about geology to further improve the workforce.
Focus on creating value: He notes that the company's core purpose is to create value for shareholders. He aims to move the company from a 25-million-dollar valuation to over 250 million.
Transparent communication and investor relations: Sutherland states he spends significant time engaging with current and potential investors. He notes the importance of educating investors, especially those who are not familiar with the mining sector. He also observes the historical disconnect between commodity prices and the valuation of mining equities and sees opportunity for growth.
Sutherland acknowledges that the company's current challenges include prioritizing exploration targets and effectively communicating the value of mining to a broader audience. He also observes that the mining industry often suffers from misconceptions, where the public imagines it to be like "Discovery Channel" style operations. Despite these challenges, he is optimistic about the future of the company and the mining sector.
Chapter Summary
(00:01:03) Introduction and Background
(00:01:45) Global Exploration Experience
(00:03:11) Transition to Leadership
(00:07:23) Mining's Importance and Investment
(00:08:33) Focus on Sonora, Mexico
(00:13:01) Value Creation and Growth
(00:19:11) Leadership and Team Building
(00:28:05) Investor Relations and Industry Outlook
Book Mentioned in this Episode
Never Rest on Your Ores: Building a Mining Company, One Stone at a Time by Norman B. Keevil
https://www.amazon.com/Never-Rest-Your-Ores-Footprints/dp/0773551557
Resources:
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