TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) executive chairman Kirill Klip talked with Proactive about the latest developments at Ganfengâs Mariana lithium project in Argentina.
With production now underway, TNR Gold is set to start receiving royalty cash payments, marking a significant shift for the company.
Proactive: Hello, you're watching Proactive. I'm joined by TNR Gold Executive Chairman Kirill Klip. Kirill, good to speak with you, and good news for TNR Gold with production starting at Ganfengâs Mariana lithium project in Argentina. So you'll soon start to see those first royalty cash payments?
Kirill Klip: Yes, good afternoon. Thank you for joining us today. We have wonderful news from Argentina. As you know, we are building a green energy metals royalty and gold company. Now, TNR Gold is graduating from a junior mining project generation company to a cash flow-generating royalty company. This is a very important milestone we have achieved this month.
Kirill, tell us a little bit more about the lithium resource that Ganfeng is developing at Mariana?
Yes, this is very important information that we received from Ganfeng in their news release about the integration of the first phase of production at Mariana Lithium. They reported 8.1 million tonnes of lithium carbonate equivalent at the project. The first stage of production has now commenced, with an annual capacity of 20,000 tonnes of lithium chloride.
On February 11th, a delegation from Ganfeng met with the President of Argentina. On February 12th, they traveled to Salta, where the governor participated in the inauguration ceremony of the production plant in Güemes.
You mentioned green energy. TNR Gold is building out a green energy portfolio, and Ganfeng has the largest solar power plant in Argentina at the project. How does this support environmental sustainability?
Yes, this is correct. From the very beginning, Ganfeng has been very conscious of environmental issues. When they joined TNR Gold in 2009 and started investing in International Lithium, they prioritized sustainability.
Despite being at a high altitude in the Andes, they built the largest solar farm in Argentina, with a capacity of 120 megawatts. They are considering increasing it to 150 megawatts. They also use their own batteries to ensure an uninterrupted power supply for the production facilities at Mariana Lithium. This includes a 288-kilowatt-hour energy storage facility.
Environmental concerns have always been a top priority. Ganfeng has worked closely with local authorities, including the governor of Salta, and has created 19 local special preservation areas to protect the regionâs flora and fauna.
You mentioned that President Javier Milei was there for the inauguration. We've discussed his economic reforms before. Have these changes given more confidence to businesses operating in Argentina?
Yes, the President of Argentina met with the Ganfeng delegation in Buenos Aires on February 11th. This was a significant moment for business activity in Argentina. The new government has announced bold economic reforms, including tax incentives for companies investing in the country.
Ganfeng is already considering a second phase of development at Mariana. They are applying for these new tax incentives to potentially expand production beyond the initially planned 20,000 tonnes of lithium per year.
This is all very good news for TNR Gold and its royalty cash flow expectations. Fundamental Research has also written about this.
Yes, we were very pleased with the new report from Fundamental Research, which highlights our transformation into a cash flow-generating royalty company. They have maintained a buy rating for our company and increased their target price from $0.24 to $0.28.
I should note that this report does not reflect the views of the companyâs management. However, it marks an important milestone for us. Our company is now debt-free and expects to start generating cash flow as early as next month, with operations already underway in Argentina.
We believe our share price does not currently reflect the fundamental value of our assets. This transformation from a junior mining project generator to a cash flow-generating royalty company should help investors recognize the real value of our assets in the market.
Quotes have been lightly edited for clarity and style