Categories: Precious Metals
Topics: General Precious Metals

GoldMining Inc. (TSX: GOLD) Chairman Amir Adnani on Appointment of Former Goldcorp CEO David Garofalo to CEO of Gold Royalty Corp and Advisory Board of GoldMining Inc.

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Chairman of GoldMining Inc. (TSX: GOLD)(OTC: GLDLF), Mr. Amir Adnani. Amir, how are you today?

Amir Adnani: Gerardo, I got to say, I love your introductions. I feel like I'm about to go start a boxing match or something.

Gerardo Del Real: I tell you what, if you're as successful promoting boxing events as you have been attracting top-notch talent to GoldMining and Gold Royalty Corp, I think you'd be very, very successful at that endeavor. You, obviously, just had some news today that I wanted to speak with you about. 

But before we get into that, I got to get your take on the gold price. We're sitting here at $2,036 an ounce in US dollars. What do you think?

Amir Adnani: It's interesting because two months ago, if you talked to people – and we talked about all the money printing that was going on, and gold was sitting at, let's say, $1,700 – everyone kept saying, "I can't believe it's not going higher. Why isn't it higher?" Now it finally catches up to reality. The gold price is catching up to the reality of where we are in the world. Unless you tell me that we're going to be stopping the printing press with the Fed and government spending tomorrow, then gold is exactly where it should be. It should be going higher.

People are saying it's run up too fast or whatever. Well, I don't think it's doing anything out of the ordinary here. This ridiculous, crazy fanatical debasement of fiat currencies we've been witnessing for months now –  which, by the way, is a continuation of a decade of low interest rates to begin with, preceding this year – we can't lose sight of that. Gold is still below its inflation-adjusted all-time high. Even that $1,900 price from 2011 adjusted for inflation is about $2,150. We're still below that. You're talking about record debt. Just pick your economic data, that seems to be at a record worst. The fact that the 10-year treasury is also now yielding negative interest at negative 1% real rate. Where else should the gold price be? Exactly here, if not higher.

Gerardo Del Real: I absolutely agree with you. I think there's a lot of people operating under the premise that there's going to be a big pullback. Look, let's be frank with everyone. We've seen bull markets in the past, Amir. We know the cyclicality of it. Every bull market in the past has had the kind of pullback that shakes weak hands and newer hands out. I hope we get one of those soon, actually, so I can continue to top off positions. 

But I completely agree with you as far as the direction of economic policy, monetary policy. I have it on good authority that the Fed isn't even thinking about thinking about raising interest rates for at least the next several years. So a lot of tailwinds there.

Let's talk GoldMining Inc. and Gold Royalty Corp. You just attracted what's got to be described as one of the top minds in the gold space. The experience is pretty impressive. Can you give us some details on not just the addition to the Gold Royalty CEO position, but you also brought the gentlemen onto the advisory board of GoldMining Inc.

Amir Adnani: Yeah, let's get right into it. Today's announcement that we had for GoldMining, that you alluded to, is the appointment of David Garofalo to the advisory board of GoldMining, and as the new chairman and CEO of our wholly-owned subsidiary, Gold Royalty Corp. 

David was the former CEO of Goldcorp and was able to get a deal done last year where he merged his company, Goldcorp, with Newmont. That created the world's leading gold producer, which is Newmont today. David's got really a stellar track record, over 30 years of experience with gold major producers. Names like Agnico, where he was CFO of that company, and most recently at Goldcorp. During his career, he's also been responsible for leading the development of over a dozen projects globally into becoming producing mines.

I think it really speaks, Gerardo, to the vision and plan that we have at GoldMining. We have big plans. The big plans that we have are underpinned by the very substantial resource space that we have assembled over the last 8 years, close to a decade I would say. GoldMining, as you know, has been around and patiently acquiring projects, having amassed this very large portfolio that we sit on today. The only way in my mind, and in the mind of our team and our board, to really transition into the next chapter in our story, and to really build on this big resource base, is to make sure that we attract the absolute very best in terms of team and individuals that can really help advance both the development of our portfolio and this new concept, this company that we've created with Gold Royalty, which is yet another way to derive value from the resource space that we own and derive that value for our shareholders. 

It's a very distinct form of value. It's value that recognizes the opportunity where royalty and streaming companies do tend to trade at a substantial premium of their respective net asset value, or other market valuations. That's something that we felt, why not? We are in that position with the 14 projects that we own in 5 countries. We have critical mass. When you have critical mass, you can create both the Gold Royalty side of the business, which is what we've done, and continue advancing the projects.

What's important about the appointment of David and him joining our team, is that it really fulfills both of our objectives. His experience at the helm of major gold producers and advancing gold projects into production certainly is value add as we look to advance our portfolio of resource-stage gold projects. Him taking on the helm at Gold Royalty, where we think we can unlock significant value for shareholders through that vehicle, is also very relevant experience. 

Also let's not forget, it's also an important vote of confidence. Again, with someone of his track record and background, looking at what we've assembled here, looking at the projects, and looking at where we are in the gold market, and the point at which we're at in the gold cycle, everything combined, this is an important development, and there's more to come.

A big part of the execution part of our strategy, now, to advance the portfolio forward is to continue to build out the team. We should have more news on that front, but definitely not to take away from today's news and the spotlight being on David joining the team is very exciting.

Gerardo Del Real: You beat me to my next question. I've read several research reports today that put a price target on GoldMining Inc. at over $4 and close to $5. You're currently trading at $2.40 Canadian. But my question was going to be, Amir, how do you transition from overseeing the operation of a company or companies in a bear market, and then pivot and maximize shareholder value in a bull market? Because it's two different skillsets, both of which I know you possess. What's the big difference between those two markets?

Amir Adnani: I can really speak to it from my own personal experience because, as you very well know, having spent a lot of time in the uranium sector I've seen both sides of it, pre-Fukushima and post-Fukushima. Pre-Fukushima, we had a hot uranium market, uranium prices were over $70 per pound. As you know, we had a business plan with Uranium Energy, where I'm the CEO of that company. 

The plan was to become a producer. To become a producer, we executed. Part of execution was attracting mine builders, and the right team, and operators. We went, basically, from a business plan to operating the Palangana-Hobson uranium mine within five years, literally from a business plan, from a concept. That was a different strategy, different mindset. As you can appreciate, I've seen that and what's needed in that environment.

Then in a bear market environment that we've been in for gold and uranium since 2011. Now, mind you, uranium is getting better. Gold is certainly now in a bull market. But in that environment it took a different strategy, and a different sort of style and approach. Ours was simply to say, assets are cheap in a bear market, so be a buyer, and bulk up, and buy as much as you can. That's what we've done at GoldMining. I've had similar experience, as you know, at Uranium Energy.

So, fast forward to today. The gold market is now in a bull market, which is in the early innings, and has the makings to potentially be the biggest bull market of our lifetimes. In that context, it is about having the right team, and building a team, and attracting the best people imaginable. Not just the best people available, but the best people in the sector that understand what it takes to build big companies, that understand how to advance more than one project.

Again, David checks all those boxes. With his appointment today, we demonstrate that. I think you're going to see over the course of the time ahead of us here, weeks and months to come, we're going to continue to demonstrate that we're positioning to be situated in a way where we can adapt to the bull market environment in terms of getting a different kind of value for the asset base that we have. That means greater market recognition and visibility that your team will attract. We have an exceptional team in place already. It's been a great team to be small and nimble to get us to the point we're in right now. We want to stay nimble, but add very relevant and proficient expertise in taking this business forward. Today, again, is a very big and important step in that direction.

Gerardo Del Real: Amir, it's been fun and profitable, by the way, watching you navigate a bear market. I'm looking forward to seeing you navigate this bull market which, I completely agree with you, will be historic in nature for several reasons. We could be here all day, frankly, if we started to discuss each. But is there anything else that you'd like to add before I let you go?

Amir Adnani: Keep your eyes on both GoldMining, and other news we might have on a Gold Royalty Corp. Exciting proposition where we can highlight the fact that GoldMining in a way is now two companies in one. Both businesses will be advanced. The right people will be joining an existing team, who's been very committed for close to a decade to get us to the point that we're in now. To your point, we will be having a lot of fun and looking to create a lot of shareholder value along the way as well.

Gerardo Del Real: Fantastic. Amir, thank you for your time.

Amir Adnani: Thank you, Gerardo.