TSX-V: MHUB | OTC: MHUBF
Digitalizing the Multi-$Billion
Commodity Supply Chain Sector
MineHub Technologies Inc. (TSX-V: MHUB)(OTC: MHUBF) is bringing to market a first-of-its-kind digital solution to the multi-$billion commodities supply chain sector.
In a world where practically everything is digitized, the US$11 trillion global commodities industry, incredibly, still operates on paper transactions, spreadsheets, and telephone calls — and thus, an industry-wide digital solution has been long overdue.
To that end, MineHub has successfully partnered with some of the largest players in the space — including a late-breaking agreement with the world’s #1 copper producer — to build out a digital commodities supply chain platform across a multitude of entities involved in the mining, refining, storing, transporting, and trading of various commodities.
MHUB’s suite of enterprise applications brings efficiency, security, and transparency to the management of commodity supply chains worldwide via the digitization of the sale, purchase, transportation, and financing of raw materials.
An Intelligent Growth Strategy
MineHub was founded in 2018 with syndicate members that included Goldcorp (now Newmont Corp.), ING Bank, and Wheaton Precious Metals.
The company collaborated with IBM in 2019 to build the MineHub platform. Since then, it has commercially contracted with:
- BHP: The global mining leader
- Sumitomo: One of the world’s largest global trading companies
- Codelco: The world’s largest copper producer (Breaking News!)
- Southwire: The leading cable and wire producer in North America
- Superior Essex: The No. 1 magnet wire producer in North America
- Port Panama City: The largest metals port in North America
- Perennial: North America’s top aluminum distributor
How Does It All Work?
MineHub’s digital platform — or Hub — connects the many parties involved in a physical commodity transaction to a digitally integrated workflow operating on the basis of shared information.
The platform incorporates contracts, shipments, inventories, and other key inputs and securely ties them all together and organizes them with Application Programming Interfaces (APIs).
The interface allows users of the platform to take full control of their supply chain needs with features that optimize the use of resources — including security, flexibility, and compliance of their operations.
As an example, on 18 April 2023, Ashley Woodhouse, director of marketing for Capstone Copper’s Global Concentrate and Metals Sales, had this to say:
“…this first live shipment of concentrates has been a great experience — our team appreciates the ease of use and the automation. There are many cumbersome aspects of selling metal concentrates, and the MineHub platform along with their Assay Exchange solution, solidifies themselves as leaders in this space.”
MineHub’s platform also offers additional add-on applications including Trade Management and Trade Finance, which are already live with more applications on the way.
The Importance of ESG:
ESG (Environmental, Social, and Governance) has become a critical component in the screening of investments based on corporate policies designed to encourage companies to act responsibly.
Nowhere is this more important than in the mining and refining industries where investors and customers demand full transparency on the origin of mined material and the level of carbon emission footprint BEFORE making a decision on whether to do business or invest in a particular company.
In fact, new legislation involving materials’ provenance, as well as carbon emission footprint and ESG reporting, means outdated manual processes for physical commodity movements will soon be too expensive or even unfeasible.
Solving that dilemma, MHUB’s digital platform seamlessly integrates ESG performance, including ESG risk management, via automated carbon emissions accounting and ESG disclosure — including proof of origin and source of mining materials and output.
Interested parties can check out the entire platform or book a demo here.
By automating the bottom-up accounting and verification of emissions and ESG footprint, MineHub is bringing to market a modernized technology platform that will play an ever-increasing role in effectuating a responsible global commodities supply chain.
Positioned for Growth
As you’re about to discover in our exclusive interview with MineHub executive chairman Vince Sorace coming right up, the MHUB team anticipates having over 130 companies on the MineHub platform this year with expectations for accelerated user growth and revenue growth over the coming quarters.
To that end, in Q2 2023, MineHub released its inaugural reporting of projected Annual Recurring Revenue (ARR) of C$2 million with an initial focus on the copper, aluminum, and steel supply chain markets.
MineHub’s primary revenue generation is from subscription fees for the platform, usage fees for enterprise applications, and revenue share agreements.
Key Amalgamation with Waybridge Technologies:
In Q1 2023, MineHub combined with Waybridge Technologies, formerly one of MineHub’s leading counterparts in the space.
The two entities — now one cohesive synergistic unit — essentially meet up in the middle of the commodities transaction cycle.
While MineHub focuses on the downstream side of the business (with a current focus on copper, aluminum, and steel mining and smelting), Waybridge’s platform is more on the upstream side of the equation, starting with refined metals and working its way upward toward the smelters and the mining companies themselves.
In 2022, Waybridge customers — which include Southwire and Superior Essex, as well as major miners, warehouses, and shipping companies — managed more than $7B of raw materials through the platform.
The combined entity, and its extended user base with more than 100 companies, will continue to operate under the MineHub corporate structure.
Upon announcing the deal, MineHub Technologies CEO Arnoud Star Busmann neatly summarized the combined operation:
“Minehub launched with a strong focus on connecting sales operations within mining companies to their customers for bulk commodities such as iron ore and metal concentrates. Waybridge started from the manufacturing side, connecting procurement operations with their metal suppliers. Both companies are working with industry leaders — Waybridge more focused in North America, and Minehub in Asia. The combination instantly realizes an end-to-end global solution for the full supply chain from mine to market. Both platforms have been adopted by industry leaders that have the scale to influence market practices. We have the potential to significantly reduce timelines to reach critical mass and become an industry standard, creating network value for our customers…”
Additionally, as a result of the Waybridge acquisition, MineHub has achieved cost synergies that will reduce MHUB’s timeline to anticipated profitability, including:
- A larger and more diversified base of large corporates providing recurring revenue-generating contracts
- Anticipated reductions of approximately 20%-25% in operating costs
- Additional potential revenue from existing customer base
- Shortened sales cycles and time-to-revenue
Mr. Busmann added:
“…We have heard from countless companies in the commodities industry that they have been waiting for a solution to emerge for digitizing the sale, purchase, transportation, and financing of raw materials. With the support of market leaders such as BHP, Sumitomo, and Codelco, we believe MineHub is that solution and is on track to become the industry standard for modern supply chain management.”
And the proof is in black and white: On 9 August 2023, MineHub announced that it had inked a three-year contract with Codelco — the world’s largest copper producer — on digitizing the firm’s global refined copper business via Minehub’s Waybridge Platform.
Newly-appointed MineHub CEO Andrea Aranguren commented via press release:
“Codelco's three-year commitment to MineHub is a huge testament to the dedication and expertise of our team, as well as the trust placed in us by Codelco. The partnership between MineHub and Codelco is paving the way for groundbreaking advancements in digital solutions, empowering mining operations with supply-chain software that enhances efficiency and environmental responsibility. After rigorous evaluations and close collaboration, this prestigious contract represents the mutual trust and shared vision between our two companies.”
MineHub’s Waybridge digital commercial platform will enable Codelco’s customers to consolidate key supply chain data while improving visibility into global copper flows, thereby driving operational efficiencies throughout the entire supply chain process.
Building off of the mutual trust between the two firms, next steps will include the onboarding of Codelco’s global customers onto the Waybridge Platform while also exploring ways to eventually add the company’s large copper concentrates business to the mix.
As you’ll see in our exclusive interview with MHUB executive chairman Vince Sorace coming right up, the virality effect for MineHub continues to be robust as demonstrated by the company’s early successes in onboarding additional companies and user bases via the synergies presented by these flagship agreements.
To-date, MineHub has added over 100 users to its platform and anticipates expanding to over 130 companies by year end with expectations for accelerated user growth and revenue growth over the coming quarters.
Again, Codelco is the #1 copper producer on the entire planet, making this a very significant agreement for MineHub, which has a current market cap well below C$35 million.
MineHub also announced, in early August, the signing of an agreement with a prominent, unnamed global mining company to its platform.
That deal is projected to contribute approximately C$850,000 to MHUB’s revenue in the next 12 months.
Ms. Aranguren added,
“This agreement with a global mining company marks a significant milestone in MineHub's journey. Together, we aim to spearhead a paradigm shift in mining operations, empowering our industry with unparalleled security, efficiency, and transparency of supply chains. This momentous partnership reinforces MineHub's position as a pioneering force in the mining technology sector and underscores the immense value the mining industry sees in the transformative opportunities offered by the MineHub platform…”
In other words, with MHUB, speculators are being presented with a very early-stage opportunity in a company that’s positioning to lead the digitalization of the multi-$billion commodities supply chain sector right as multiple industry leaders are coming on board.
Highly Adept Management Team
In Q3 2023, MineHub announced the appointment of Andrea Aranguren — cofounder of Waybridge and former vice president of metals and logistics at Goldman Sachs — as the company’s president and CEO.
An expert in logistics digitization and supply chain optimization, Andrea boasts a decade of experience in commodities operations (oil & gas, metals, and environmental) and in helping startups to optimize their logistics & manage their supply chains.
At Goldman Sachs, she was responsible for the scheduling and inventory management for the North American and South American physical base metals business, including copper, lead, and aluminum.
Andrea graduated from the University of Pennsylvania with honors in Economics and received her MBA from Columbia University, including a role as vice president alumni for Columbia’s Private Equity and Venture Capital Club.
MineHub director Arnoud Star Busmann is one of the pioneers of the intersection of commodities, finance, and blockchain technology. Prior to joining Minehub, he was the innovation lead for commodities at ING Bank where he led the cross-industry Easy Trading Connect initiative.
A well-rounded executive with tech DNA, Arnoud boasts multiple decades of experience in strategy execution, enterprise transformation, and “blue chip” startups. Upon obtaining a master’s degree in computer science from the Netherlands, he has lived and worked across Europe, Asia, and Oceania.
MineHub founder and executive chairman Vince Sorace is a mining and technology entrepreneur with over 30 years of international business and capital markets experience.
Mr. Sorace has financed and led numerous resource, technology, and alternative energy companies with assets and operations in the US, Canada, Europe, and Asia and has raised over C$300M in equity and debt financings for public and private entities.
Vince has founded and has held CEO positions with numerous companies and brings extensive experience in capital markets, operations, management, and public governance. Mr. Sorace is currently president & CEO of Kutcho Copper and chairman of E79 Resources.
Vince attended Simon Fraser University in Business Administration and the BC Institute of Technology in Management Systems.
Echo Tao has been focused on commodity trading and marketing for the majority of her career. She started her journey in steel trading with Nichimen Corporation, by then one of the world’s largest globally integrated business enterprises.
She joined BHP in 2002 as an iron ore marketer and, in her 14 years with the organization, gained valuable experience in marketing various commodities, including iron ore, metallurgical coal, energy coal, manganese, and uranium in Shanghai and Singapore.
Exclusive Interview with
MineHub Executive Chairman Vince Sorace
On 9 August 2023, our own Gerardo Del Real of Resource Stock Digest sat down with MineHub founder and executive chairman Vince Sorace for an in-depth discussion on the company's first-mover advantage in the space, the focus on delivering long-term value to stakeholders, and the late-breaking Codelco news.
We hope you’ll enjoy the conversation.
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.
The Opportunity
MineHub Technologies Inc. (TSX-V: MHUB)(OTC: MHUBF) has launched an enterprise-grade digital solution that connects buyers, sellers, and financiers within physical commodities supply chains in a digitally integrated workflow powered by data that is usable, shareable, verifiable, and unforgeable.
It’s the first solution of its kind for the US$11 trillion global commodities sector.
Users of MineHub’s digital platform are in full control of their supply chains, enabling them to optimize their use of resources, respond better and faster to disruptions, and provide better customer service.
A number of global enterprises are currently taking advantage of MHUB’s solution as part of their logistics, compliance, trade management, and financing operations — including industry leaders such as BHP (US$150B capitalization), Sumitomo (one of Japan’s largest corporations), and, as discussed in detail in this Special Report, Codelco (the world’s #1 copper producer).
MineHub anticipates having over 130 companies on its platform this year with expectations for accelerated user growth and revenue growth over the coming quarters.
You heard directly from MineHub executive chairman, Vince Sorace. He says,
“...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.”
MineHub Technologies is well structured with only 110.3 million shares outstanding on a fully diluted basis with more than half of those shares with management, institutions, and advisors.
At present, the company’s shares are trading undiscovered around C$0.35 for a miniscule market cap below C$35 million.
For speculators seeking exposure to the multi-$billion commodities supply chain sector, MineHub Technologies offers exceptional upside potential as it brings to market its first-of-its-kind digitized platform serving the industry.
The company’s shares trade on the Toronto Venture Exchange under the symbol MHUB and on the US OTC Bulletin Board Exchange under the symbol MHUBF.
For additional information on Vancouver-based MineHub Technologies Inc., and to commence your own due diligence, be sure to contact the company’s IR department here.
Sign up to receive updates directly from the company at the MineHub corporate website and view the 2023 Corporate Presentation here.
— Resource Stock Digest Research
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