ValOre Metals: Brazil PGM Play Targets Production Growth

• ValOre Metals is positioning itself as an emerging Brazilian precious metals producer with a 2.2 million ounce platinum-palladium-gold resource at its flagship Pedra Branca project in Ceará State, Brazil.
• The company leverages experienced Discovery Group leadership with a proven track record of $2.6 billion in M&A transactions and plans to achieve near-term gold production through strategic acquisitions of advanced-stage assets.
• Structural supply deficits in platinum and palladium markets, with both metals trading 48% and 25% higher year-to-date respectively in 2025, create favorable pricing conditions for PGM-focused developers.
• ValOre's dual-track growth strategy combines resource expansion at Pedra Branca through advanced metallurgical testing and exploration drilling with an aggressive acquisition program targeting producing or near-production gold projects in northeastern Brazil.
• With a modest C$29.3 million market capitalization, 20% insider ownership, and operations in a jurisdiction graduating more mining engineers than the United States and Canada combined, the company offers leveraged exposure to rising precious metals prices in a stable mining environment.

Brazil's mining sector is experiencing renewed investor interest as the country positions itself among the world's top ten gold producers while maintaining stable regulatory frameworks and expanding technical talent pipelines. ValOre Metals Corp. (TSX-V: VO, OTCQB: KVLQF) has entered this landscape with a dual strategy: developing a significant platinum-group metals resource in Ceará State while simultaneously pursuing near-term gold production through acquisitions. The company's November 2025 corporate presentation outlines an aggressive growth trajectory underpinned by leadership from the Discovery Group, which has participated in over $1 billion in mining M&A activity.

As platinum trades 48% higher year-to-date and palladium gains 25%, ValOre's 2.2 million ounce Pedra Branca resource provides exposure to metals facing structural supply deficits extending through 2028. For investors seeking mid-cap development opportunities in precious metals, ValOre represents a leveraged play on both PGM market dynamics and Brazil's expanding mining economy. The company's approach combines exploration upside with near-term production catalysts, addressing a common challenge for junior miners facing extended development timelines before generating revenue.

Company Overview

ValOre Metals operates as a Canadian-listed exploration and development company focused exclusively on Brazilian precious metals opportunities. The company's flagship asset, the Pedra Branca PGE Project, comprises 51,096 hectares in Ceará State with 100% ownership and hosts an inferred resource of 2.2 million ounces of platinum, palladium, and gold across seven near-surface zones. Chairman Jim Paterson co-founded the Discovery Group, whose member companies have raised $300 million and delivered five major discoveries leading to acquisitions valued at $1.7 billion.

CEO Nick Smart brings 21 years of operational experience from major mining companies, including construction and operation of large-scale platinum, zinc, nickel, and diamond projects across South Africa, Brazil, Canada, and the UK. Smart, who assumed the CEO role effective October 1, 2025, brings particularly relevant Brazilian experience, having worked for a major mining company for six years in the states of Minas Gerais and Goiás developing and building nickel mines and processing plants. Smart expressed his enthusiasm for the opportunity, stating:

"I am honored to join ValOre at such an opportune and important time for the company. I have had the privilege over the past couple of weeks to meet and begin working alongside some of the truly talented members of the ValOre team, as they are taking forward the development of our flagship Pedra Branca PGE project and actively explore new, district-level precious metals opportunities in some of the most prospective areas of Brazil. I am beyond excited by the capacity and potential we have together to build on this base and create a world-class integrated precious metals company."

ValOre's corporate structure shows 254.9 million shares outstanding with a market capitalization of C$29.3 million as of November 1, 2025, trading at $0.115 per share within a 52-week range of $0.050 to $0.155. Insider and advisor ownership represents 20% of shares, with resource and mining funds holding 25%, close associates 10%, and retail investors 45%. The company holds C$1.3 million in cash, positioning it for near-term metallurgical work completion and initial acquisition activities.

The Pedra Branca PGM Resource

Pedra Branca's March 2022 NI 43-101 resource estimate reports 63.3 million tonnes grading 1.08 g/t for 2.198 million ounces of combined platinum, palladium, and gold in the inferred category. The resource spans seven near-surface zones within an 80-kilometer mineralized trend, with four core deposits (Esbarro, Curiu, Cedro and Cana Branca) containing over 1 million ounces combined. Two large southern zones, Trapia and Massape, host an additional 1 million ounces.

ValOre's 2023 drilling program tested five new exploration zones across more than 6,000 meters, including the Salvador Target discovery, establishing an emerging north-south exploration corridor not incorporated in the current resource estimate. The company has invested CAD$10 million in exploration, drilling 23,534 meters at Pedra Branca, while previous operators invested USD$30 million across 30,000 meters of historical drilling. This substantial investment base provides ValOre with extensive geological data and infrastructure to leverage in advancing the project.

The project's geological setting within mafic-ultramafic intrusions provides multiple mineralized horizons amenable to open-pit mining scenarios. Near-surface mineralization, excellent regional infrastructure including paved highway access, proximity to Fortaleza International Airport and deep-water port facilities, and established community support in the municipality of Capitão Mor create favorable development conditions. The property sits just a four-hour drive from Fortaleza via paved highway, with the regional capital providing access to skilled labor, mining services, and international logistics capabilities.

Leadership & Strategic Direction

ValOre's September 2025 appointment of Nick Smart as CEO represents a strategic shift toward operational execution and project development. Smart's background designing, delivering, and operating complex mining capital projects globally aligns directly with ValOre's transition from pure explorer to development company pursuing near-term production. His six years working for a major mining company in Brazil, where he gained working fluency in Portuguese and developed deep relationships with Brazilian mining professionals, addresses jurisdictional execution risks that often constrain foreign mining companies operating in South America.

Chairman Jim Paterson highlighted the strategic fit of Smart's appointment:

"Our entire team is excited and very proud to welcome C.E.O. Nick Smart. Nick's career background aligns incredibly well with ValOre's asset base and corporate strategy, including: working in platinum mines in South Africa; successfully building and working at a wide variety of challenging projects in Namibia, northern Canada and Brazil; and most recently gaining critical executive leadership experience in a successful start up venture. His impressive resume makes him perfectly suited to lead our organization into this next phase of growth and opportunity in Brazil's precious metals sector."

The management team's Brazil-based operational leadership includes VP Exploration Thiago Diniz, who holds an M.Sc. in Economic Geology from Queen's University. Diniz brings direct experience developing fertilizer, base metal, and precious metal projects in both Brazil and Canada, providing on-ground technical capabilities that complement Smart's operational expertise. This combination of international capital markets experience through the Discovery Group and local Brazilian execution capability distinguishes ValOre from junior explorers lacking operational depth.

PGM Market Fundamentals

Platinum and palladium markets face structural supply deficits driven by underinvestment in new production and sustained demand from automotive and industrial applications. According to ValOre's market analysis, platinum experienced a 48% price increase year-to-date in 2025, while palladium gained 25%, reflecting tightening supply-demand fundamentals. Industry research cited in the presentation shows platinum deficits persisting through 2026 forecast periods, with supply concentrated in the Russian Federation and South Africa.

The automotive sector continues driving over 50% of platinum and palladium demand despite the electric vehicle transition, as internal combustion and hybrid vehicles maintain significant market share through extended replacement cycles. Industry data shows palladium supply-demand balances in consistent deficit from 2014 through 2022, with projected shortfalls continuing through 2028 as mine supply struggles to match sustained industrial consumption. Platinum markets experienced surplus conditions in some years but shifted to deficit from 2022 forward, with forecast deficits extending through 2028.

A November 2025 precious metals forecast survey by market researchers, comparing retail investor, professional analyst, and AI model predictions, shows divergent expectations that underscore market uncertainty. AI models forecast platinum averaging $955 to $1,129 per ounce through 2025, while retail investors predict $1,037 and industry analysts expect $1,022. For palladium, AI projections range from $1,146 to $1,437, with retail investors at $1,076 and analysts at $991. These wide forecast ranges reflect uncertainty around automotive demand transitions and supply disruptions, creating both risk and opportunity for PGM-leveraged investments.

Strategic Acquisition Program

ValOre's growth strategy extends beyond Pedra Branca development to include aggressive pursuit of producing or near-production gold assets in northeastern Brazil. The company's Q1 2026 milestone targets announcement of a Brazilian gold project acquisition, with Q3 2026 goals including gold production commencement from acquired assets and expanded M&A efforts. This acquisition approach addresses junior miners' common challenge of extended development timelines by accelerating cash flow generation through producing assets while maintaining PGM exposure through Pedra Branca advancement.

The acquisition criteria outlined in ValOre's presentation targets "high-quality precious metals targets (advanced stage gold projects in N.E. Brazil)" with "district-scale, exploration and development projects" showing "significant prior investments with clear upside." This framework focuses on assets where substantial historical investment has derisked geology and infrastructure but where previous operators may have lacked capital or operational expertise to advance projects to production. ValOre's all-Brazilian operational team provides execution capability for multiple simultaneous project advancement.

Financing for acquisitions and growth will leverage ValOre's TSX-V listing providing access to Canadian capital markets, alongside potential Brazilian Bovespa listing for domestic investor access. The Discovery Group's track record raising $1 billion across member companies and completing $2.6 billion in M&A transactions provides strategic relationships with resource-focused investment funds. Strategic equity partnerships may provide project-level financing for larger acquisitions or development capital for Pedra Branca advancement.

Brazil Mining Jurisdiction

Brazil ranks among the world's top ten gold producers, with annual output of approximately $3.8 billion growing toward projected $6 billion by 2030 according to industry research cited in ValOre's presentation. The country's mining sector benefits from stable regulatory frameworks supporting investment and streamlined approval processes compared to historical bureaucratic challenges. Ceará State, hosting Pedra Branca, maintains established mining permitting protocols under federal and state jurisdiction, with environmental impact assessments following standardized processes.

Brazil's mining talent pipeline now produces more mining engineering graduates than the United States and Canada combined, according to industry workforce data referenced in the presentation. This technical workforce availability addresses skilled labor constraints facing mining operations globally and supports ValOre's strategy of building an all-Brazilian operational team. The country's northeastern regions, including Ceará, offer lower operating cost structures than traditional Brazilian mining centers in Minas Gerais while maintaining access to international logistics through Atlantic coast port facilities.

ValOre's 100% ownership of Pedra Branca's 51,096-hectare land position eliminates joint venture complexities and provides full project control through permitting and development phases. The company's strong community relationships in Capitão Mor municipality, developed through employment of local workforce and community engagement programs, establish social license foundations critical for successful mine development in Brazil.

Development Timeline & Catalysts

ValOre's growth trajectory outlines specific milestones spanning Q4 2025 through Q1 2027, providing investors with clear catalyst visibility. Q4 2025 targets completion of Pedra Branca metallurgical testwork demonstrating optimal process routes, a critical technical milestone for PEA advancement. The company has invested in comprehensive metallurgical testwork partnering with the University of Cape Town, exploring both conventional flotation processes and innovative bacteria-based bioextraction methods for PGMs.

Q1 2026 goals include announcement of a Brazilian gold project acquisition, delivering on the near-term production strategy while maintaining Pedra Branca as a longer-term development asset. Q3 2026 milestones target commencement of gold production from acquired assets alongside expanded M&A efforts, transitioning ValOre toward producer status. Q4 2026 aims for Pedra Branca PEA publication, providing initial economic parameters for the PGM project and supporting permitting applications. Q1 2027 targets advancement of Pedra Branca licensing and environmental impact assessment, progressing the project toward feasibility and construction decision stages.

The metallurgical testwork completion represents a particularly significant catalyst, as processing routes fundamentally determine project economics for PGM operations where metal recoveries and concentrate grades directly impact operating costs. ValOre's exploration of bioextraction methods alongside conventional flotation potentially differentiates Pedra Branca from traditional PGM operations if bacteria-based processing proves commercially viable at the project's mineralization characteristics.

Technical & Execution Risks

Pedra Branca's inferred resource classification carries higher geological uncertainty than measured or indicated categories, with conversion requiring additional drilling to establish continuity and grade confidence. Metallurgical testwork results may indicate lower-than-expected recoveries or require more complex processing than anticipated, negatively impacting project economics. PGM concentrate markets are concentrated among a limited number of smelters and refiners, potentially constraining offtake arrangements or resulting in less favorable commercial terms than assumed in economic studies.

The gold acquisition strategy faces competitive market conditions, with numerous companies pursuing similar consolidation approaches in Brazil's northeastern mining districts. ValOre's modest treasury limits acquisition capacity absent additional financing, potentially constraining target opportunities or requiring dilutive capital raises. Integration of producing assets requires operational expertise beyond exploration-development skillsets, though CEO Smart's 21-year operational background mitigates this risk.

Platinum and palladium prices remain volatile, with long-term demand trajectories uncertain due to electric vehicle adoption rates and potential substitution in industrial applications. A sustained downturn in PGM prices would negatively impact Pedra Branca economics and potentially delay development decisions. Currency fluctuations between the Brazilian real, Canadian dollar, and US dollar create exchange rate risks for projects with mixed-currency cost structures and revenue streams.

Investment Thesis for Brazilian Precious Metals Developers

• Leverage PGM supply deficits through exposure to near-surface, jurisdictionally favorable deposits outside South Africa and Russia concentration.
• Diversify gold portfolios with Brazilian exposure as the country expands production toward $6 billion annually by 2030.
• Access Discovery Group deal-making expertise through ValOre's 20% insider ownership and chairman's $1.7 billion M&A track record.
• Position for M&A upside as mid-tier producers seek Brazilian assets, with ValOre's $29 million market cap offering acquisition target valuation.
• Capture metallurgical innovation potential if bioextraction demonstrates commercial viability, potentially improving PGM project economics industry-wide.
• Balance near-term production catalysts through gold acquisitions against longer-term PGM development optionality at Pedra Branca.

ValOre Metals presents a leveraged opportunity in precious metals development combining near-term production potential through gold acquisitions with longer-term PGM exposure via the 2.2 million ounce Pedra Branca resource. The company's Discovery Group leadership brings demonstrated M&A and capital markets capabilities, while CEO Smart's operational background provides execution credibility beyond typical junior explorer management teams. Brazil's expanding mining sector, growing engineering talent pipeline, and stable regulatory environment address jurisdictional risks that constrain mining investment in less favorable regions.

The investment case centers on ValOre's ability to execute its dual-track strategy: generating near-term cash flow from Brazilian gold acquisitions while advancing Pedra Branca through metallurgical testwork, PEA, and permitting toward development decisions. Success on the acquisition front would transform the company's financial profile and demonstrate management's operational capabilities, potentially attracting institutional investors focused on emerging producers rather than pre-revenue developers.

Investors evaluating ValOre should assess risk tolerance for junior mining companies, understanding that while successful exploration-development-production companies generate substantial returns, many fail to advance projects to commercial operation due to technical, financial, or market challenges. Appropriate position sizing within diversified precious metals portfolios allows investors to capture potential upside while limiting exposure to company-specific execution risks.

TL;DR

ValOre Metals develops a 2.2 million ounce Brazilian PGM resource while pursuing near-term gold production through acquisitions. Discovery Group leadership brings $2.6 billion M&A experience. Platinum up 48% and palladium up 25% year-to-date reflect structural supply deficits. Q1 2026 targets gold acquisition announcement; Q4 2026 aims for Pedra Branca PEA. Company trades at $29 million market cap with 20% insider ownership.

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