MineHub Technologies (TSX-V: MHUB)(OTC: MHUBF) Executive Chairman Vince Sorace on Building Value through the Onboarding of Industry Leaders such as Codelco and Sumitomo

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman of MineHub Technologies — Mr. Vince Sorace. Vince, how are you today?

Vince Sorace: I'm doing great, Gerardo. Thanks for having me back.

Gerardo Del Real: Vince, I am fortunate enough to really love what I do. And a part of the reason that I love what I do is because, oftentimes, when I get people on the phone, I am providing updates to the market and to our audience but, also, I am biased and have written checks to these companies and want to know what the heck is going on myself. 

And so, MineHub Technologies is one of those companies. I've written multiple checks. I haven't sold a share. I am looking forward to a 2024 full of catalysts. So with that being said, you just achieved record revenue in the third quarter. You're positioned well for 2024 because you just raised C$4 million and you just announced a share consolidation. 

All of that to me sounds like the team is setting the table for an exciting 2024. But I thought I'd check in and I just figured we'd record it, do it in public, and give the update to the audience as well.

Vince Sorace: Yes, and you're right in your analysis. We just finished this capital raise, which now, as of tomorrow or Friday, will be a share consolidation, effective, which I think was important, call it, to improve the cap table and allow, I believe, an easier path to share price appreciation. 

And yes, we're excited for 2024. We've got money in the bank, and our focus has been on capital to break even. We're getting very close to that now. And 2024, we've mentioned this before at this inflection point in the company with contracts that we've signed with Codelco, one of the biggest copper producers in the world, with Sumitomo, recently, has been an additional catalyst to other mining companies responding. 

And I think we will see a lot of new customers, strategic partners, and a number of other catalysts coming here, I'd say, in short, midterm, and throughout 2024 that can change the complexion of this story as well.

Gerardo Del Real: You're being modest and humble and coy because, obviously, you're the chairman and I understand that. 

So let me translate for everyone out there. As a biased shareholder, what I take that to mean — and everyone should know I'm optimistic by nature so I could be off on this — but what I take that to mean is that when we have the likes of Sumitomo writing us checks to advance our platform because it is so effective and with the platform having the biggest moat in the industry, there's simply no one else that's on par doing what MineHub is doing. 

So when you have a Sumitomo at the table, when you have a lot of big, big names that don't want to be disclosed at the table — which will be disclosed in due time — that's a green light for everybody to start adopting the technology. 

And I sense that you're lining up the dominoes to be able to start more publicly speaking about some of the names that are being involved in maybe accelerating the development of the technology. Is that an accurate speculation?

Vince Sorace: Yes, and what I can tell you is that, to your point, we have a big moat around this platform. There is nobody out there doing what this platform is capable of doing. And that continues to be recognized. Mining companies, etc., around the world, recognizing that fact and solidifying our position is becoming more and more prominent daily. 

The way that I see this building out is that this platform definitely has the potential to be the de facto standard within this industry. So we're heading down that path. This has got, I believe, amazing potential. Some of these things just take some time but we're on that path now.

Gerardo Del Real: Well, let me ask you a question because this part excites me as well. Anybody that knows me knows that outside of real estate, the bulk of my net worth, rightly or wrongly, is tied up in natural resource stocks. It's my bread and butter. It's what I love. It's what I enjoy. 

But with that being said, I love the fact that MineHub is digitizing the commodity supply chain, and I love the potential to expand the platform to other sectors outside of the resource space because I simply don't see any boundaries. Is that something that may be in the cards in the future?

Vince Sorace: Definitely. We've already been making forward plans to move into adjacent markets because the platform is relatively agnostic as to what it can handle. So there is definitely some low-hanging fruit in front of us.

But I would say, in the chemicals space, we already handle some chemicals supply chain transactions as chemicals and miners interact in those markets as well. So other things like segments of agriculture or different commodities as well. I mean, right now, our focus has really been on copper but that can expand into multiple different markets such as steel and aluminum. And so, even within just the commodity sector, there exists expansion potential. 

But yes, to your point, chemicals, ag, other elements…. and it's not about putting CapEx into the platform to expand into these markets. It's really about just bringing on people that know those markets and that can sell and facilitate into those markets. It's not a massive expenditure to do it. We want to make sure that we're walking before we run…  but that opportunity definitely exists.

Gerardo Del Real: Well, I'm looking forward to having you back on, Vince, as these material developments become public. And I'm really looking forward to seeing you with the treasury you have now to advance the company in a way that hopefully gets us to see profitability very, very soon. 

Last but not least, I want to touch on the share consolidation. It's something that I supported. It's something that I believe does a lot to account for where shares are held and wherein long-term shareholders, like myself, aren't punished indiscriminately when short-term flippers decide they can no longer hold onto a position. 

Can you speak to the motivation behind the share consolidation?

Vince Sorace: Yes, I think, in the last number of months as we've kind of gone through multiple financings, I've been very happy with the participants in those financings. We've been bringing in some very, very strong shareholders into those financings who've been repeatedly there, and I think there's been some attrition over the past couple of years from our original shareholder base. 

Unfortunately, I guess, it comes along with the times and the markets but I think we are getting to the point here now where we can see some freedom with respect to the flippers, as you call them. This share consolidation should emphasize that, if you will. So, I believe this was the right move. It also provided some higher ceilings on other potential overhang like warrants. 

I do believe that the share consolidation is good and will give the stock some breathing room, and we can see some appreciation along with what we believe will be some exciting announcements and stuff to come in the future.

Gerardo Del Real: Well, looking forward to those, Vince. Thanks for that update. Appreciate it!

Vince Sorace: Thank you, Gerardo.

Gerardo Del Real: Alright, take care. Chat soon.

Click here to see more from MineHub Technologies