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Interview with Bruce Maluish, MD of VRX Silica (ASX: VRX)

VRX Silica Ltd. is a silica sands mining company with three projects in Western Australia. Silica is the most common and most used commodity on the planet, with it used in glass and concrete production primarily. The global silica sand market has seen large demand recently, due to an increase in the global construction rate as well as a shortage of high-purity silica sands necessary for glass production. The Asia-Pacific region is responsible for 47% of the global silica sand demand and is projected to grow with a 7.7% compound annual growth rate in the next 5 years.

The company’s asset portfolio is comprised of the Arrowsmith, Muchea and Boyatup projects. The Arrowsmith project consists of the Arrowsmith North and Arrowsmith Central silica sand projects that are located 270 km north of Perth, with the Muchea Silica sand project located 50 km north of Perth and the company’s Boyatup silica sand project laying 100 km east of Esperance. The Arrowsmith and Muchea projects have bankable feasibility studies with the Muchea project boasting high-grade silica ideally suited for the production of ultra-clear glass for solar panels. The three projects each have the potential to deliver 2 million tons of silica sands per year.

VRX Silica Ltd. announced at the end of May 2022 that it had commenced with the procurement of various pieces of equipment which will enable production at its Arrowsmith North project. The company purchased most of the major capital equipment second-hand with the refurbishment of the equipment currently underway. The company is well-financed for its endeavours, with no immediate plans to raise funds until the decision to mine has been made and environmental approval has been received.

0:00 - Company Overview
0:22 - Silica Sands Overview: What is it for and its Market?
3:28 - Market Size of Silica Sands
4:38 - Which markets and sectors are VRX Silica aiming to sell at?
7:26 - Economics of the Arrowsmith Project
9:43 - Capital Expenditure of the Arrowsmith Project
10:57 - Land Package and the Life of Mine of the Arrowsmith Project
12:14 - Studies done in the Arrowsmith Project Overview
15:30 - Getting Contracts in Various Countries and Markets
18:20 - Price Movement of the Silica Products Overview
20:50 -  Strategies in Improving Margins
26:54 - Plans in Raising more Equity
29:33 - Raising Money in a Non-Dilutory way
31:59 - Possibility of Getting Prepay
34:08 - Optionality in Raising more Equity
35:32 - Projection on Timing and Numbers of Company Revenue
37:11 - Outro

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