MineHub Technologies (TSX-V: MHUB)(OTC: MHUBF) Executive Chairman Vince Sorace on Achieving Record Q2 Revenues on Way to Profitability
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman of one of the most unique companies in the resource space, MineHub Technologies, Mr. Vince Sorace.
Vince, it's great to have you back on. Congratulations, sir. You just reported second quarter record revenue. Hats off! The company is executing beautifully. Talk to me about the quarter.
Vince Sorace: Yeah, first of all, thank you for having me again. The quarter was fantastic and I think this is what people can expect to see moving forward. We are continuing to see almost daily growth in interest and customer engagement.
On the corporate side of things here, I don't think things could be going too much better at this point, and that kind of speaks to the strategy and the model of the company. This hub and spoke model, this virality effect, signing on these big customers like we have, from the Codelcos, the Southwires, the Sumitomos, and their ecosystems that come on board with them that translate into additional customers to MineHub. Conversations we're having with other large miners in the space.
When we saw this kind of kick off, it is this snowball effect, and that's what we're seeing right now. The teams are extremely busy. We brought on new sales and support people to help with increased customer engagement. It's all going exceptionally well. We're extremely happy with what's happening on the corporate side as reflected in this quarter, and we believe that we'll continue to see positive growth like this increasing. We're already tracking, these are internal projections right now, to kind of beat our own internal targets. So things are going, again, very, very well.
Gerardo Del Real: Your president and CEO describes where MineHub is right now as being at an inflection point, which is propelling the company forward towards anticipated profitability. There are literally thousands of gold juniors looking for a deposit or developing a deposit or trying to permit a deposit to one day reach the Holy Grail in the space, which, of course, is sustainability and profitability.
MineHub Technologies is the leading digital provider for the commodities industry, and you are on the cusp of profitability with partnerships, in essence, joint ventures and partnerships with the biggest names in mining, right?
Can you explain, just because, again, I'm getting a lot of questions every time you and I have a conversation about MineHub and exactly what it is MindHub does and why the heck they've never heard of it.
And so I just want to be crystal clear for people that are listening to this and are trying to make a comparison, which can be hard to do because it's such a unique business model, can you just give us a brief overview of what it is exactly that MineHub does and the moat that it's created for itself in the space?
Vince Sorace: I think one of the best ways to describe this, and this may seem surprising to most, is most things in our lives are digitized. When we go out and we buy something from a retailer or on a website, we do that and we're able to, and this is simplistic, but we're able to see very quickly these days through probably too many emails or texts or whatever the reporting mechanisms are, ‘Okay, you just purchased this. Thank you very much. This is coming your way. It'll be delivered on such and such a date.’ All the interactions that occur, it has become digitized and we're very aware of where everything is and what's happening with it, etc.
In the mining industry, now we're obviously talking about something a lot more complex, but there's never been any digitized process between buyers and sellers in refined metals and concentrates in whatever it may be for companies to know what's happening once they've bought something.
It was very, very loose. It was… well, someone would send us an email but it would take them two days to figure out and to answer the question that they were required to answer and then send them an email. There was no real time live tracking of goods, inventory management of goods, because there were no protocols to anticipate if something was going to be on time because now you're talking about big shipping vessels or trucking companies or rail companies, etc. So none of that existed.
So MineHub basically manages everything post-trade. So once the buyer and the seller have negotiated a contract, that contract is put on the MineHub system and the entire ecosystem around that contract. And again, this could be everything from miners to shippers to every logistics company involved because these things move around the world. It’s now on one platform.
Everybody can see exactly what's happening with that order processing. This is all the plumbing behind the scenes. This is like when somebody clicks ‘purchase’ on Amazon. Everything that happens within the Amazon distribution center is kind of what MineHub does for the mining world.
And it's complex. It's important. The efficiencies that these companies on the platform are seeing and receiving from internal controls to inventory management to mitigate plant shutdowns through inventory management, etc., is what MineHub does. And again, it doesn't exist. There's no one else out there doing this. There hasn't been anyone else out there ever doing this in the commodity space.
And let me move this one step further. We're doing it for the commodities space. This doesn't exist through other bigs like the industrials or chemicals or agriculture. It just doesn't exist in those forums either. And obviously, we need to walk before we can run but those are our aspirations in the years to come as well.
Gerardo Del Real: And again, just to be absolutely clear, the market is everybody in the space, correct?
Vince Sorace: Correct. Everybody. And it's global. One of our largest customers right now is interested in really pushing the MineHub platform to be the global standard for the mining and metals industry.
There's going to be one, essentially, and these are the types of conversations we're having with our companies because it just makes it easier for everybody. Because in this space, a lot of different companies interact, similar logistics companies, etc. So it just makes it more efficient and easy for everybody if there's one global standard. And I think that's the direction we're heading.
Gerardo Del Real: It's a fascinating speculation. Again, I want to emphasize the fact that you're on a path towards profitability soon. You have multiple major, major partners that are interested in making sure that they help you get to that profitability finish line and across that line.
Look, I'm a biased shareholder. I wrote a check recently and am looking forward to writing checks at higher prices. I absolutely believe higher prices are on the horizon. Vince Sorace, executive chairman of MineHub Technologies… anything else to add to that, Vince?
Vince Sorace: That's good. Keep an eye out. I think there's a lot more to come. And again, our future here is going to be customers and customer engagement. You'll see on the profitability side, right now, this is a SaaS model.
Just to remind everybody, this is a technology platform, a technology model. So as of right now, we are operating, even now on 40% to 50% margins, if we want to get a little deeper into the metrics. But moving forward, again, this is the type of company that should be achieving 70% to 80% margins on their product as we move closer to profitability here, which we believe isn't too far away.
So yes, we are definitely on the cusp. We think of all that happening right now.
Gerardo Del Real: Good stuff, Vince. A pleasure as always. Thanks for coming on.
Vince Sorace: Thank you, Gerardo.Click here to see more from MineHub Technologies