The risk reward scenario for Aterian shareholders looks excellent.
“…Rio Tinto is paying for everything in Rwanda. In Morocco, we have 17 assets with Silver, Gold and Copper and we may look to work with one of the majors…”
There are significant and tangible indicators that the junior mining sector is coming back into favour.
It’s a beneficiary of what the bigger players are doing. Anglo American has turned down BHP Billiton’s takeover offer and this takeover saga has the month of May to unfold further. It’s a not unexpected approach, and Aterian Plc’s chairman Charles Bray says these large transactions are a sign that there’s value to be had, and “you’ll start to see that filter through down into the junior market.”
Aterian has a portfolio of African-focused critical and strategic metal assets, and itself has already attracted the partnership of another Anglo suitor Rio Tinto. Rio is a joint venture partner in Aterian’s HCK lithium project in Rwanda.
The model that Aterian has created with Rio is a thing of beauty. “Rio Tinto is paying for everything,” says Bray. “And they’re paying for it in a way that we’re learning from. They’re hiring experts They’re hiring subcontractors. They’re engaging in health and safety protocols that we’re learning from. They’re engaging with the local community with our assistance and so all of that is helping us to become better stakeholders as well. We not only get the data from all the research and work that’s being done, but we’re able to engage with those other stakeholders, whether they’re local community members, local government, stakeholders or suppliers.”
“We retain all of the data. We retain all of that information and we can still continue to advance that project.” Another plus, says Bray, is that all of the above is helping Aterian advance other projects in Rwanda.
Aterian has a lot to manage. It also has 17 assets in the Kingdom of Morocco and what it has is prospective. “We’re finding silver. We’re finding gold. We’re finding copper and we want to really understand through drilling what does that mean across the entire licence area?,” says Bray who adds what it means is possibly another partnership with a major.
Bray has an impressive background in corporate finance and doesn’t waste money. As he explains to Sarah Lowther he’s a due diligence, risk-reward stickler. “It’s about having what I call low delta options, so that when you do find that discovery it more than compensates for the risk that you took on, and the cost you took on. And those costs are relatively small. So, we feel that the risk reward scenario for our shareholders for ourselves is excellent.”
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Read the company’s corporate presentation
Aterian featured in our 2024 stocks to watch research
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