For the mining industry, 2023 was one of those years that we are happy to see in the rearview mirror. The sector grappled with volatility, inflation, rising supply costs, falling prices, and changing demands that left many on the back foot as the path toward a greener world constantly changes amidst the backdrop of geopolitical tensions and a stressed macro-economic environment.
Acrux Resources believes in finding opportunity in times of volatility, adversity and a suppressed pricing environment. We take a long-term view, understanding the cyclical nature of the sector.
Despite the economic climate, we took great strides forward, always focusing on doing the right thing for the environment and the communities in which we work. We continue to build successful businesses from conception to launch, creating an ecosystem of services that supports the industry and one another.
We also used 2023 as an opportunity to fortify ourselves by observing industry trends and looking internally at our structure, making required shifts, so that we will be prepared and operationally ready for the years ahead.
Acrux Sorting Technology
Acrux Sorting Technology (AST) launched approximately three years back- which was challenging considering the difficult economic conditions brought on by Covid-19. Despite this, AST has accomplished great things for a new business and closed 2023 on a high. The company raised its second round of capital at a good valuation which will take the business to a new and promising level. We take pride in watching AST’s mounting success and take reassurance that we can build a successful, value-adding business during even the most challenging of circumstances. We are currently operational on our third site, processing material for our clients in an environmentally conscientious way.
AST now boast an extensive database across coal, magnesium, chrome, gold, lithium, copper, magnetite, fluorspar, zinc and lead. Furthermore, we have developed detailed monthly sustainability scorecards for our clients that demonstrate the impact of our sorting efforts.
In addition, the board was reconstituted to optimally support the business with the right blend of skills, expertise, vision, and background: – in executive positions, Sean Browne has stepped into the role of full-time CEO and is supported by Karel Potgieter as COO. Moss Ngoasheng has taken over as Non-Executive Chairman of the Board, bringing a wealth of experience across the mining and financial services sectors in South Africa. Mologadi Ngwasheng joins the board as a non-executive director alongside Geoff Linnell and Lelo Rantloane.
FineTech Minerals
FineTech, a business we were instrumental in launching in ultra fines recovery technology, has been operating its first commercial plant in the Western Limb for the last eighteen months, where performance continues to exceed expectations. The management team repeatedly push past the previous limits of ultra fine chrome recovery to deliver excellent production and financial performance in challenging conditions. Over the next year, we expect further plants to come into production in the chrome and PGM sector while continuing to develop and process intellectual property in our dedicated research and development facility on other commodities such as tin, iron and heavy minerals.
Xcelsior
The rise in demand for critical minerals, and the opaqueness of these markets, have called for a unique credit strategy. In the second half of 2023 Acrux Resources, together with Wogen Resources and Liam Farley, launched Xcelsior Capital, a structured trade finance firm that provides flexible capital solutions to producers and processors of critical metals and minerals in return for securing the underlying physical trading and, in some instances, the marketing of these niche metals and minerals. This combination of credit and price exposure provides our investors unique exposure to the critical mineral sector. They also benefit from the expertise of our trading partners, Wogen Resources, who leverage their fifty years’ experience in these markets to distribute these metals and minerals globally.
Risk Management
We are focused on building a sustainable ecosystem that addresses gaps in the industry, provides solutions, and generates opportunities. Offering innovative risk management solutions is a natural service offering progression for Acrux.
In Q1 2024, we invested in a Lloyds of London mining insurance broker, Seven Chairs Limited, who are mining and commodity specialists. Lloyds of London is the world’s leading insurance and reinsurance marketplace. For more than three centuries, the Llyods market has been sharing risk to protect people and businesses, inspiring them to create a better world.
The ESG Trend
For many mines and businesses, environmental, social and governance (ESG) has progressed from being a begrudging tick-the-box exercise to a strategic business pillar against which they are tracked and measured. However, it seems that the pendulum has swung too far too quickly and ‘ESG priorities’ is now an industry buzz phrase. We should ask if what businesses are reporting on has a credible long-term impact.
From where we stand, the mining sector should focus on a uniform goal of sustainability and collectively work toward a long-term strategy.
Acrux Resources is focused on doing the right thing for the environment, society, and communities where we operate. This is baked into our business’s purpose. Our strong governance rules place the betterment of our planet and its inhabitants at the forefront of our efforts.
Looking forward
In 2023, we sought opportunities to leverage our team’s knowledge, passion and expertise while developing a holistic solution to the mining sector. We believe in transparency and sharing ideas for the betterment of the world and remain committed to leading conversations about mining technology, originating new initiatives, and sharing our insights with the industry.