Arctic Minerals as an investment

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Arctic Minerals is a Nordic mineral exploration company listed on the Stockholm Stock Exchange, focused on exploring for copper, zinc, gold, and battery metals primarily in Finland. In the Peräpohja (Peräpohja) copper project, the company has a joint venture with mining giant Rio Tinto, which I understand secures the project’s financing.

Analysis of Arctic Minerals is currently available from, for example, Carlsquare, and I read a comprehensive analysis from them, quite similar to our extensive reports, before conducting the interview below (subtitled in Finnish). Carlsquare provided a good overview of the company for a newcomer to the mining sector like myself.

I have understood that most mineral explorations turn out to be unsuccessful, and Arctic Minerals should also be understood as a risky investment in this context. On the flip side, the opportunities can be significant if explorations hit a “gold mine.” As a rule of thumb, only one in a hundred advanced exploration targets eventually develops into a mine.

Based on Carlsquare’s analysis and the company’s own statements, Arctic Minerals has assembled a team with very strong credentials, who also own a significant portion of the company. According to Carlsquare, the most important reason to invest in Arctic Minerals is its management and board, and the company’s founders were once important figures in the Scandinavian Minerals (Scandinavian Minerals) exploration company and its Kevitsa (Kevitsa) project. The company was sold to First Quantum in 2008. In the interview, the most important aspects of the company are, in my view, quite well explained.

I am opening this thread so that those interested in the company can discuss it here and, of course, also suggest questions for future company interviews. We will interview Arctic Minerals for inderesTV regularly in the future, likely about every six months.

Here is Arctic Minerals’ company page on inderes.fi: Arctic Minerals - osake - Inderes

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This is an exceptionally interesting prospect for junior exploration. A highly experienced team with a good track record, and they’ve already had one major success under their belt with the Rio Tinto Joint Venture. Mining exploration companies are largely investments in people, and this would be prime material on offer, and at a very affordable price. I doubt this will generate much discussion or emotion at this stage, but it has at least made it onto my watchlist for quarterly review. I’ll be waiting for more detailed information on the Kiiminki drilling schedule :+1: :cowboy_hat_face:

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Let’s save the latest interview with Arctic Minerals’ Forsberg here.

The company is not under our analytical coverage, but we have agreed to conduct video interviews at regular intervals.

Analysis is freely available, for example, by Carlsquare.

https://www.inderes.fi/fi/muut-analyysit/arctic-minerals-q2-2021-higher-metal-prices-adding-further-potential-carlsquare

I’ll add one last thing: a few times I almost, and probably did, call Jonathan Peter by chance, after a certain Swedish hockey player. :laughing:

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Project progress is slow, but that’s always the case with these juniors :cowboy_hat_face:

Drilling at the Peräpohja Joint Venture continues in 2022.

The exploration of the Nutukka gold discovery continues in 2022.

In Kiiminki, they’re fighting in court with environmentalists.

The company may start working on new targets “Inari” and “Lohi”.

https://www.arcticminerals.se/en/investor-relations/news/arctic-minerals-has-carried-out-diamond-drilling-at-its-copp-92284

New permits have been granted for Bidjovagge and further studies will continue in 2022. They are apparently trying to sell it to some gullible buyer, as the locals are unlikely to grant permits for a mine.

https://www.arcticminerals.se/en/investor-relations/news/arctic-minerals-has-been-granted-prolongation-of-extraction--89921

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Arctic Minerals announced on Wednesday a study according to which the ore reserves in the Bidjovagge area would be substantially larger than estimated in 2012.

“The mineral resource classified as indicated has increased to 3.3 million tons compared with 2.3 million tons in the 2012 estimate. The grades in the indicated resource is now 1.27 gram per ton gold and 0.97 percent copper.”

“Total contained metal in the new indicated resource is 134,000 oz gold and 32,200 thousand tons of copper. This represents an increase of 22 percent in contained gold and 28 percent in contained copper compared with the 2012 estimate. In addition, the new inferred resource is 0.3 million tons with grades of 1.8 gram per ton gold and 0.7 percent copper content, equivalent to 21,000 oz gold and 2,500 tons copper.”

https://www.arcticminerals.se/en/investor-relations/news/updated-mineral-resource-estimate-for-arctic-minerals-gold-c-92612

Arctic Minerals is not covered by us, but analysis from Carlsquare, for example, is available. Their comment on Bidjovagge can be accessed via the link below. :point_down:

https://www.inderes.fi/fi/tiedotteet/carlsquare-mrkt-buzz-arctic-minerals-increased-value-bidjovagge

We will try to get CEO Jonatan Forsberg for an interview on InderesTV soon to tell us more.

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https://www.arcticminerals.se/investor-relations/nyheter/cobalt-and-tellurium-potential-identified-at-arctic-minerals-93069

Reason for today’s price increase

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It looks like the municipality of Kautokeino will not grant permission to open the Bidjovagge mine, so the findings from these drillings have at most a highly speculative value. The share price reacted disproportionately to that: :face_with_monocle: The company’s true value lies in the Joint Venture and top-notch management with a good history of successful exploration projects.

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The company has started to reinvest in the development of the Bidjovagge project and has extended and obtained mining permits and additional exploration permits. I believe that Bidjovagge can be restarted, and for that, they plan to apply for additional permits. However, Arctic is a relatively small company to start a mine and therefore needs a partner with the necessary resources. Hopefully, a partner will be found, and the project will continue. We didn’t quite reach pre-news levels today. I’m holding @Pohjolan_Eka

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In Norway, local governments can prevent a mine from being established in their area. Bidjovagge was the first mine in Norway where this happened. The issue is that the Sami reindeer herders who govern the municipality do not benefit at all from establishing a mine in a reindeer herding area, so it’s difficult to assign much monetary value to an ore discovery :face_with_monocle:

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(18) Arctic Minerals H2’21: An Eventful Year-End (Eng.) | Inderes: Stock Analyses, Model Portfolio, Stock Comparison & Morning Brief

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Today I also added :finland: subtitles to the interview, which might make it easier to follow.

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Here’s the latest interview with Arctic Minerals’ Forsberg. The interview is in English. :point_down:

Arctic Minerals is not under our coverage, but Carlsquare’s analyses can be found via the company page on inderes.fi.

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Their recent stronger pivot back to Norway for the Katterat project is a bit disappointing.

The company had a really top-notch team, but the focus is now completely lost. The additional drilling at Bidjovagge is largely a waste of time because the mine will never get a permit due to local opposition and therefore has no significant monetary value. A company of this size does not have credible resources to explore and drill here and there and hope that one of the drillings would succeed :frowning:

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Fresh interview about recent news.

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You really have to stay alert with these junior miners.
The original deal with Rio Tinto went like this:

The joint venture agreement was signed in January 2020 and provides for Rio Tinto to earn an initial 51% interest in certain exploration properties by spending a total of US$ 4 million on exploration within 3 years of the effective date of the agreement. Rio Tinto may increase its interest to 75% by spending a further US$ 5 million over a subsequent 2-year period. Once Rio Tinto’s interest has reached 75%, each party can maintain its interest by contributing to exploration spending on a pro-rata basis or choose to be diluted pro-rata.

So in practice, the three years of the original Peräpohja deal were completed and Rio Tinto didn’t find it worthwhile to continue drilling, even though there is a desperate global shortage of new copper mines. Extremely negative news, considering the previous investment thesis was to sell that mine to Rio Tinto and use the funds to finance new drilling or even liquidate the entire company. And now Arctic Minerals is hyping Rio Tinto’s withdrawal as good news? :face_with_raised_eyebrow:

Bidjovagge seems like a sensible target in terms of the ore body, but since the zoning doesn’t allow for the establishment of a mine, further drilling in the area doesn’t really add value unless they find some fool to buy a site where mining is prohibited.

It really looks like the company’s future is on the line, as these multiple drilling campaigns have been unfortunately unlucky. They have to hit copper properly in Peräpohja in 2023, or it’s game over :frowning:

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Exploration Manager Risto Pietilä appointed as new CEO and Jonatan Forsberg continues in other roles within the company.

“Risto Pietelä replaces Jonatan Forsberg, who will continue to support the Company with business development, although not as CEO and Director.”

https://www.arcticminerals.se/en/investor-relations/news/arctic-minerals-appoints-risto-pietila-as-new-ceo-102127

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What do you think of the new results and an absolutely massive wake-up call for the entire company. Someone could calculate the market value, and significant amounts of silver and copper go into industry. The market price of copper and silver has been on a strong rise recently. For a bigger player, the current market value is pocket change, and only a small part of the reserve area has been explored so far. Plus all other deposits on top of that.

2025-03-26 08:15

REGMAR

Maiden Mineral Resource for Hennes Bay totals 447,000 tonnes of Contained Copper and 37,000,000 ounces of Silver

Arctic Minerals AB (publ) (the “Company” or “Arctic Minerals”) is pleased to announce a maiden Mineral Resource Estimate (“MRE”) for the Hennes Bay copper-silver project in Sweden (“Hennes Bay” or the “Project”). The MRE is 55.39Mt at 1.0% Copper Equivalent (“CuEq”) for a total 543,000t CuEq contained metal. The total metal content comprises 447,000t of copper and 37Moz of silver.

The 100% owned Project is located in the province of Dalsland in Sweden. The Company engaged Cube Consulting, a highly regarded Australian independent consulting firm, to prepare and report the MRE for Hennes Bay in accordance with the JORC Code (2012). The full report is available on Arctic Minerals’ website www.arcticminerals.se.

Highlights

  • Maiden MRE for Hennes Bay of 55.39Mt at 1.0% CuEq (0.8% Cu & 20.8g/t Ag) (above a 0.8% CuEq cut-off)
    • Total metal content of 447,000t of copper and 37,000,000 Oz of silver
    • 100% of MRE classified in the Inferred Mineral Resource category
    • Prepared and reported in accordance with the JORC Code (2012) by an independent Competent Person
  • Located in the Tier 1 mining jurisdiction of Sweden, currently one of the largest mining economies in Europe
  • Immense resource growth and exploration upside potential
    • MRE based solely on the Dingelvik prospect, where mineralisation remains open in all directions
    • MRE does not include several other prospects with extensive zones of mineralisation defined by historical drilling. With limited further drilling, the Asselbyn, Henneviken, Baldersnäs, Åsnebo and Härserud Norra prospects may be added to the MRE
    • MRE interpreted as distal part of a sediment-hosted stratiform copper mineral system (“SSC”)
    • SSC mineral systems favor the formation of very large deposits and mineral districts, and represent the most important source of copper produced in the world after porphyry copper deposits, accounting for 20-25% of the global production and reserves
    • Arctic Minerals’ highly prospective tenement package at Hennes Bay covers 322km2 with a further 80km2 under application. Less than 5% of the aerially extensive target horizon has been drill tested
    • Surface outcrops of the same mineralised contact have been mapped and sampled (grab sample results including 1.78% Cu & 40 g/t Ag) up to 17 km from the MRE
    • Detailing relogging and reassaying of historical core, extensive fieldwork, and reprocessing of available geophysical data conducted over the past two years has confirmed the potential for substantial resource growth and new discoveries through further targeted drilling
  • Planned work program at Hennes Bay includes:
    • Stakeholder engagement
    • Additional field mapping, geophysical surveys, resource extension and regional drilling
    • Preliminary metallurgical testing
    • Preliminary Economic Assessment (“PEA”)
    • Baseline studies into the local environment, flora, fauna and heritage
  • Bulk mining potential at Hennes Bay
    • The combination of relatively large tonnage, high grades, and predictable ore body geometry make SSCs very attractive for large scale mining operations
    • The maiden MRE will form the basis for a PEA to assess the technical and economic viability of the Project. The PEA will commence immediately
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The drills have certainly hit well now. And considering the value of those copper/silver quantities, the stock price is far too low. Maybe something will still come of this, even though it has looked bad for a long time.

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Sweden knows how to do mining, and in Finland, people complain about everything. Just the value of silver is a billion… and only from the first drilling. Then copper… the prices of both have still been rising well, as has gold. Industry uses a lot of copper and silver in its production processes… e.g., batteries and pipes. This stock was in a swampy spot and seems to have reached dry land. Someone has been aggressively buying the stock from the market, and price fluctuations are wild.

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In Sweden, geologists were not trained for a couple of decades, and I don’t know if they are still being trained. Finnish geologists are working there at the mines of Kiruna and Gällivare (there are others too, of course). Yes, Finland has the expertise, but the Swedes have been lucky with their ores. Nobody wants a mine in their backyard or in a Natura area, that’s clear.

And to the point. At a quick glance, the concentrations, ore quantities, and geology seem quite impressive. Geology in the sense that more ore will probably be found there once the genesis of this ore is understood.

It’s hard to say what the value of such a thing should be, but the stock certainly seems cheap when there are already billions worth of ore. And I’m talking about euros.

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