Greenland Mines President Bo Møller Stensgaard on Arctic Security and Project Execution

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Greenland Mines President Bo Møller Stensgaard emphasizes that the recent diplomatic agreement between the United States, Denmark, and Greenland regarding Arctic security has significantly reduced geopolitical uncertainty for the company. This collaborative framework not only reaffirms a shared commitment to the region's stability but also fosters an environment conducive to major infrastructure investments. Stensgaard highlights that mining projects in Greenland are inherently strategic infrastructure developments, particularly given the company's geostrategic locations in both East and West Greenland. The improved political climate is expected to accelerate progress on their advanced projects, allowing the company to move swiftly into new development phases with reduced risk. A central focus of the discussion is the strategic partnership with Neo Performance Materials for the Kvanefjeld project, which aims to supply rare earth elements essential for manufacturing magnets. Stensgaard clarifies that unlike many other global deposits involving difficult silicate minerals, their operations rely on carbonate-bearing minerals like bastnaesite and monazite, which have established processing routes elsewhere in the world. This distinction addresses concerns raised by industry experts regarding technical challenges, confirming that Greenland Mines possesses a viable pathway to production without needing to invent new extraction technologies. The collaboration brings an experienced operational team to the site, where recent geological mapping has upgraded mineral resource estimates and identified a hybrid mining model combining open-pit and underground techniques. The company is simultaneously advancing its Skaergaard project in East Greenland, which holds the largest known deposit of gold and palladium in the country. Currently being developed with a team of geologists and drillers, this site leverages thirty years of historical data alongside new exploration methods to unlock significant resources. Stensgaard notes that the geopolitical deal further enhances the strategic value of Skaergaard by positioning it as a critical link between Iceland and Greenland, an area previously lacking security infrastructure. With no debt burden and a strong track record of rapid execution over the last six months, Greenland Mines is well-positioned to secure exploitation licenses for both projects in the coming months. Looking ahead, shareholders can expect continued fast-paced development as the company compiles necessary data to submit applications for mining licenses from the Greenland government. The positive preliminary economic assessments for both Kvanefjeld and Skaergaard suggest a robust future for the company's operations, with an initial analysis indicating a net present value exceeding two billion US dollars for the rare earth project alone. Stensgaard expresses confidence that the new international agreements will materialize into tangible support for companies like Greenland Mines, enabling them to play a pivotal role in securing the Western world's supply of neodymium and praseodymium while contributing to broader Arctic security goals.

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[music] >> Today I have the pleasure speaking with Bo Møller Stensgaard from Greenland Mines. And of course, let's start with the Trump deal with Denmark and how that might be impacting Greenland Mines. >> Yeah, thank you. And good to meet you again, Tracy, here. And thanks for inviting us here. Well, first of all, we have all the time sort of believed in collaboration between Western allies here. And that is what you're seeing unfolding now, right? And for us, it means a lot of reduced geopolitical uncertainty here. It's showing a commitment from all three parties towards, of course, from Greenland, but now also from US and from Denmark to sort of a commitment to to Greenland for security in the Arctic. And following that, also, we believe here support for investments and moving forward in in infrastructure projects. And and and basically, mining is an infrastructure project. And we are situated in East Greenland, geo-strategic. And we are situated in West Greenland, geo-strategic. With two large uh very advanced projects here, very developed projects that we are sort of bringing into the next phase. And as we have shown the last 6 months, we are executing fast on these projects. >> And of course, you've had real news and incredible milestones, including your deal with Neo Performance Materials. You want to get You want to walk us through the deal highlights, please. >> Yeah, definitely, definitely. So, yeah, we uh uh we went into a deal with a Neo Performance Materials. They have an established value chain for for for uh midstream downstream value chain for extracting rare earths from concentrate and and producing rare earths for the rare earth magnets and they formerly had the Kvanefjeld project but decided for strategic reasons to focus on the midstream downstream part focusing on their established processing facilities and production facilities. Amongst others, they have a magnet rare earth factory in Estonia. So, they they're focusing on on that strategy and that was when they sort of when we made the connections here. We are bringing in a team here, a very experienced operational team, logistical team, and execution team on on the ground here that have experienced on Greenland. And we took over the project here and are fast-moving on the Kvanefjeld project that has a great possibility for moving here. Since we took it over, we have established a new MRE, mineral resource estimate for this, bringing in new data already, data that was not published before and so on, upgrading the mineral resources and for the first time also having a mineral resource on a hybrid model, looking at an open pit that later will go into an underground mine. And we did the first initial assessment on the project here. Basically, a pre-economic assessment here, analyze on on on the project and came out with a high case number MPV8 of more than 2 billion US for that project. So, we are we are very happy with the with the execution here. I have boots on ground at at Kvanefjeld right now, a geological team doing geological structural mapping feeding into the next phase of the program here. And we have also done through WSP Denmark, the consultancy company, we have done the second year of environmental baseline study which is required for a mining license in Greenland moving forward. So, we are fast moving on executing also on Saffiatou here and I closed the deal 14 days ago. So, it has been busy here, but all good developments. >> I was actually watching one of the online cartoons this morning that claims that you will be able through Saffiatou talk to provide 35 35% of the world's supply of neodymium and praseodymium. I think that was quite an extraordinary claim from these cartoons, but would you like to comment on that? >> Yeah, no if you're if you're taking the production that we have in mind here, then we will be throughout the mine life of that we currently have at Saffiatou and that we can probably sort of increase to more work here and so on, but but currently for the 9 mile years of mine life that we have at Saffiatou we'll be able to to deliver 1/3 of the western world's production here of neodymium praseodymium from Saffiatou, right? And this is you you're here dealing with Saffiatou that is in conventional carbonate rare earth bearing minerals, right? It's not unconventional minerals that we are here extracting the rare earth from. It's actually those that are processed elsewhere. It's not something new that we are inventing here. It is something that have shown other places to be processable, right? The minerals here. So, we know how to extract it out from from the minerals here. We don't have to invent anything new and so on. So, we're fairly sort of sure on that side also. And here with Neo Performance Materials being on board, well, then we also have the partner that actually is in production for for rare earth here. So, yeah, a western world production here. >> Well, as exciting as that is, I was speaking with the number one rare earth expert in the world last night, Jack Lifton, who's always kind of separated you from the pack. But he said that the real story, and correct correct me and Jack if he is incorrect. He said the real story here is that the silicate minerals that you have to extract from and overcoming the processing challenge has always been kind of the resistance point. And that he wants to know how you have done this because if it is, he said that's the real story here. >> Well, the real story here is that that ours are not silicate minerals, right? Ours are bastnaesite, monazite. It's carbonate bearing rare earth minerals. That is the ones that are processed elsewhere, right? So, we are not looking at something that is unconventional. We actually looking at something that is conventional where there is a processing route sort of established for this, right? So, so um that that is the answer. So, yes, in some way Jack have he's as in many other of his sort of commentaries, he's right, right? That if you're looking at silicate rare earth bearing minerals, then then it is unconventional and and difficult. But here we are looking at carbonate bearing rare earth minerals that is processable, that can be processed and are [clears throat] processed elsewhere. >> Well, I can assure you nothing pleases me more than correcting Jack. So, we we've corrected that piece of misinformation. And speaking of information, where are you right now? Looks like you're in a boat somewhere. >> Yeah, we are at our support vessel here in Uummannaq Sund at Skaergaard. Skaergaard is our other major projects. So, we have the the two sort of large projects on board here. One in in West Greenland, South Top, that we just have talked about. And then here in East Greenland 400 km east of sorry, west of Iceland. We are at Skaergaard where we have a large uh um very advanced uh project here on gold palladium platinum. Actually, it's Greenland's largest deposit of known gold and palladium. And has been known for the last 30 years, but we have now taken it over and are heavily executing on developing this and bringing in new methods for doing that and new data for that. And we are able to advance very quickly on this also sort of taking into account all the historical data that is available here on Skaergaard. So that is where I'm sort of right now with a 50 drillers geologists logistical people. We have had a blast crew on site here for blasting out a large bulk sample and yeah, fully supported here by helicopter and yeah. In motion. >> Speaking of being fully supported and being on almost everybody's radar screen today. Can you tell me a little bit more about how the signing with Trump and Denmark today in New York City might impact you positively? >> Yeah, definitely definitely. I think that that it is it is sort of first of all showing a commitment to the Arctic and showing a commitment to Greenland and it is highlighting the importance of of Greenland moving forward here, right? It's taking away sort of uncertainties on investments towards the Greenland and it's it's sort of bringing in a new support and new commitment that we also sort of sort of have seen also from the European Union to the Arctic, right? So I think that with what we have in front of here we are sort of opening up new doors for new developments here. Again, uh, have two projects here that are geostrategically also located, right? Um, for Skaergaard, where I'm where I'm at right now, uh, this is actually a geostrategic in the making here, right? Because infrastructure is sort of showing any commitment to an area, and a mining project like ours here will actually sort of be at the gap between Iceland and Greenland, one of the areas that have been also sort of highly sort of, uh, discussed, uh, and that that that had that hasn't really had any, uh, activities, any securities, and so on, that you are seeing now in the making through such a project here, and with the signing of the of the deal that we see, uh, to later today. >> Since we're correcting Jack Lifton this morning, I was reviewing your background. I always tell shareholders and investors, always review the CEO's background. And your PhD in 2004 is quite substantial and shows that you've been preparing for this deal all your life. Can you tell us a little bit more about that? >> Well, I definitely can. So, yeah, true, I have a PhD working on, uh, actually West Greenland, uh, where the Sarfartoq, uh, carbonatite complex that are hosting the the rare earth mineralization at Sarfartoq, where that is situated. So, I was working, uh, my PhD on that, making mineral resource assessments, uh, uh, mineral potential mapping, uh, for where to find resources. So, so that was my first introduction, uh, to to to Sarfartoq. And then for 16 years, I worked at the Geological Survey of Denmark and Greenland, working my way around. I was responsible for doing, uh, national wide, uh, mineral resource assessments, uh, where do you find sort of, uh, the different critical metals in in Greenland? Um, uh, so Skaergaard have always also been on my radar for this, so I know the the two projects are very well. Um, and then I left uh, and joined EIT Raw Materials, a European consortium on research and development, where I was with a senior advisor for for mineral resources across sort of Europe and and exploration for mineral resources across Europe um and was dealing with that for some years um before sort of entering into sort of the private sector here um. So so I know um true, I have been around sort of on Sava Talk and and also on Skaergaard um and Justemaas two of the in my opinion best projects that that we have in Greenland, right? >> Greenland Mines has no debt. You're preparing to help the entire world deal with our rare earth supply chain issues, specifically the magnet materials. What should shareholders be looking forward to in the next coming months? >> Well, I think that in the next coming months here shareholders should sort of watch uh how we have done it the last six months and that is executing fast on developments here, right? So we of course sort of will bring in now with MRE actually also updated on on Skaergaard recently here, where we also increased the mineral resource at Skaergaard on the gold palladium content here. Um so they will see us building on on that, right? They'll see at Sava Talk us building on on having a new MRE and having a preliminary economic analysis being very positive for Sava Talk also. So we'll fast track that into the sort of the next development phase that is also including applying for an exploitation license from uh the Greenland government. We are actually in a situation where we can sort of go ahead gathering all the data together, compiling that and send that in for for the two projects here and we'll move into the next phase and that, right? Then I also expect here that that and basically also sort of seen as today and that you'll see more also support for for projects like ours, companies like ours with the deal that the agreement that are being signed later today and so on. I I hope to see that also materializing into sort of some actions, right? >> For those of you interested in learning more about Greenland mines, please go to the following website. Thank you so much Bo for joining us today. >> You're welcome. My pleasure.