General Base Metals
MineHub Technologies (TSX-V: MHUB)(OTC: MHUBF) Executive Chairman Vince Sorace on Signing of 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 of MineHub Technologies — Mr. Vince Sorace. Vince, one of the most unique stories in the technology and mining space. And look, I talked about the first-mover advantage that you have in the moat that you have with the platforms that you're building out.
That continues to be proven out, evidenced by today's news; you just announced a three-year contract with Codelco, of all companies, the largest copper producer in the world, where Codelco has selected MindHub's platform to go ahead and start digitizing Codelco's global refined copper business.
Congratulations, first off; you have world-class partners. Clearly, they believe in the technology and the platforms. Tell me about the deal here?
Vince Sorace: Thanks, Gerardo, and thanks for having me back. Let's start with what you just said earlier… that Codelco is the largest copper producer in the world.
And when you're dealing with companies of this size and this quality, them selecting a technology partner or a technology that they're going to commit their business and their ecosystem to isn't easy. So that just speaks to the commitment and their belief in this and the benefits that they're going to get from this.
And what comes with doing a deal like this with a Codelco is their whole ecosystem. Let's not forget that Codelco won’t realize the benefits of using the platform if it's just Codelco on the platform.
And this agreement that we've signed with them identifies something north of fifty or more of their ecosystem… meaning their trading partners, from their logistics and suppliers and buyers, etc., that will be coming onto this platform as well now… so they can realize the efficiencies… so they can communicate with all of their parties.
So it's significant. And the fact that we’ve announced a three-year contract with Codelco also speaks to their belief that they will be using this in the future. So this is significant.
And when you get this mass of users not just from Codelco but also from the previous participants on the platform — like the Southwires and that we've already got over 100 users on the platform — what MindHub becomes, and we believe is already down the path of becoming, is the global industry standard for this type of application in the mining and metals space.
We've built this moat. And when you have the biggest companies in the world using it — it's sticky. At this point, we believe it's just going to continue to gain momentum and not go the other direction. We think we've got the tiger by the tail on this one.
Gerardo Del Real: I couldn't help but notice that, further down in the press release, you talk about investigating the potential for an expanded scope to include copper concentrates in the future. That could be — again, this is the largest copper producer in the world — that could be huge.
Vince Sorace: The opportunity is incredible. And this is where, a lot of the times, when we get the Codelcos and some of these other bigger companies to come on, the contracts are significant — but it's only the start of that.
And don't forget that this is based on initial pricings per metric tons, etc. But this is just the start of it. We believe every one of these contracts, the scope, will continue to increase over the years.
And one of them here would be Codelco's concentrates side. What we've done here is just on the refined metals side. The concentrates side is another massive opportunity. And I would suggest it's as equal to, or as big as, what they just did here on the refined metals side.
So there'd be an opportunity to double down on Codelco's input here just using a different aspect of the platform.
Gerardo Del Real: You also announced last week the signing of a contract with an unnamed global mining company where this global mining company will contribute approximately C$850,000 to revenue in the next 12 months.
I know you're likely not going to be able to give me the name, although I have an idea, but can you speak to the importance of that partnership and what that looks like?
Vince Sorace: Sure, and we have to keep that one confidential for now. But again, a similar opportunity to a Codelco. This is a bit in the earlier stages than Codelco. So this is kind of looking forward for the next year.
But the opportunity with this miner is that we transition. And what we're moving into, I should say, right now with them, is the earlier stages of their transition, we believe, into something like a Codelco-type deal.
And so that's something we think we can enhance and build on in the future.
Gerardo Del Real: You have 100 partners on the platform. I imagine that you're talking to the likes of everyone right now.
Vince Sorace: Yes, the virality effect is incredible. When you get these types of miners and producers in the world, and they're pushing their ecosystems again, which are significant.
And don't forget, if Codelco pushes 50 or 60 or 70 of their trading partners and ecosystem onto the platform… well, every one of those people then gets exposure to the benefits of the platform.
And our business model is turning them into paid subscribers and users on the platform for their own businesses. That's how Codelco actually came about. They were on the platform using it under Southwire's direction. And suddenly, we were able to convert them into one of our most significant paying customers.
So yes, the business model is working, and we're seeing virality across the entire industry.
Gerardo Del Real: Vince, I expect a pretty rapid re-rate in the stock, in the market cap. I expect more partnerships. I think it's going to be a unique ride with MindHub. Anything to add to that?
Vince Sorace: Nope, we're definitely looking forward to the future. We think we're on the right path here, and there'll be a lot more to come.
Gerardo Del Real: Excellent. Thank you for your time, Vince. Appreciate it as always.
Vince Sorace: Thank you, Gerardo.Click here to see more from MineHub Technologies