General Base Metals
MineHub Technologies (TSX-V: MHUB)(OTC: MHUBF) Executive Chairman Vince Sorace on Inking Landmark 3-Year Deal with Codelco, World’s Largest Copper Producer
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman for MineHub Technologies — Mr. Vince Sorace. Vince, it's great to have you back on and another milestone for MineHub. Congratulations! How are you today?
Vince Sorace: I'm doing great and thank you for having me again.
Gerardo Del Real: Let's get right into it. The stock has pulled back a bit. I haven't sold a share. I've actually been looking to add at current levels. And today's news does nothing but reinforce my view that MineHub is creating a pretty significant moat with its business model.
The news today is that you launched with Codelco. And the news release says you're providing increased visibility, traceability, and operational efficiencies. The bottom line is that a group like Codelco does not greenlight this type of technology without some major, major due diligence. Congratulations… a milestone moment for the company.
Vince Sorace: Exactly. And let's unpack that a little. Let's start by reminding everybody that Codelco is the largest copper producer in the world. So to get a company like that over the line — and they are now live and operating on the platform — for a small startup like MineHub is actually amazing.
And they have done their due diligence, and there is nothing else out there like MineHub that can do what we do for Codelco's operations. And following along with that, that would be the same for, we believe, every mining company in the world.
We've got the likes of BHP; we've announced them and Sumitomo. When we announced the three-year contract with Codelco, it was only a few months back. And this is another testament to where we're at with respect to the platform. From a few months ago, we are now live with their operations and with a significant part of their customers and ecosystem as well. So that has been onboarded and is operational and live today.
So it is quite a milestone, which we believe is going to set a precedent and add additional confidence in the market and, as well, to other customers. As we move forward here, we firmly believe MineHub is going to become the standard de facto platform for these types of operational benefits across the industry and the world.
Gerardo Del Real: It should be noted that this isn't a trial run. It’s not a three-month commitment; it’s not a six-month commitment with a renewable clause. It's a minimum of three years, correct?
Vince Sorace: It's a minimum of three years. It's not a trial. As of today, their operational team is using this live.
Gerardo Del Real: It's fascinating stuff. It's a fascinating business model. Again, I speak to the moat, right? The great Warren Buffett always says he likes to invest in businesses with significant moats. I think this checks a lot of boxes. Congrats. Anything else to add, Vince? What can we expect in the next several quarters?
Vince Sorace: In the next several quarters, our goal is to continue to bring forward customers like this; more major mining companies around the world as customers.
I would also suggest that, when I said that a significant part of Codelco's ecosystem and customers have also been onboarded — although we can’t mention those names at this point — there are some major players within that network as well. And that speaks to our business model and how we onboard our customer's customers. And then, those customers turn into our paying customers.
I think another relevant point to note within this press release is that, as of right now, we are moving approximately US$3.5 billion worth of copper on our platform. It’s moving across the MineHub platform. And I would suggest that we've only captured part of the applicable revenues that relate to that volume.
We charge on price per metric ton. So our revenue would be lagging behind those types of volumes, and you'll see it progressing. So this next year is going to be about customer revenue ramp-up and some other things we'll be doing to add value to the platform itself.
Gerardo Del Real: Sounds like it's go-time! It sounds like the volume of news and catalysts are going to accelerate. Excited to be a shareholder and looking forward to all that you have in store. Thank you so much, Vince.
Vince Sorace: Thank you for having me.Click here to see more from MineHub Technologies