Leadership credibility and capital architecture take centre stage at 121 Mining Investment Cape Town.
At 121 Mining Investment Cape Town, one of the mining sector’s must-attend global investment events, a panel of industry leaders examined a fundamental question: why do some mining and energy projects attract capital while others stall, despite similar technical fundamentals?
Moderated by Lyndsey Malchuk, Global On Camera Capital Markets Reporter at Apaton Media Inc., the discussion featured Daniel Driscoll, Head of Natural Resources – Africa at Gowling, and Kimberly Ann, CEO of Lahontan Gold. The conversation moved beyond feasibility studies and commodity forecasts to explore the intersection of leadership, perception and capital structure.
Capital Moves on Confidence
“Most people assume projects get funded because the economics make sense,” Malchuk said. “But that’s not how money moves. It has to feel structurally safe and it has to feel psychologically believable.”
That dual requirement framed the session. Projects may look robust on paper, but without credibility and conviction behind them, they struggle to progress.
For Kimberly Ann, the decisive factor is leadership.
“If I don’t believe that the CEO can get it done and the team can get it done, then I won’t personally invest,” she said. “There are so many things about this industry we can’t control… but the things that can be controlled is leadership. So, I think it starts at the top.”
Permitting timelines, jurisdictional complexity and commodity volatility all introduce uncertainty. In the junior space particularly, risk is constant. But investors, Ann argued, are ultimately underwriting the team’s ability to navigate those risks.
When investors say they are “waiting for more certainty,” she views that as a messaging issue as much as a market condition. “If they’re waiting for more certainty, then you haven’t done your job,” she said, referring to management’s responsibility to clearly communicate value and risk mitigation.
Where Fundability Breaks Down
From a structural perspective, Driscoll sees projects lose fundability early – often before promoters realise it.
“A lot of the time it’s different senses of valuation,” he said. “You’ll see promoters wanting full project NPV when they haven’t secured basic permits yet. That mentality can be a deal killer at the outset.”
Commodity price volatility further complicates negotiations. “Where’s gold going to be in six months? It’s very hard to reach agreement on valuation with prices moving the way they are.”
Bridging those gaps requires more than modelling.
“These deals are personal relationships,” Driscoll noted. “Do you trust them? Do you want to be partners with them?”
He emphasised that in-person engagement remains critical in building conviction, particularly for long-dated assets where investors and operators may be aligned for decades.
Africa: Risk or Perception?
The panel also addressed African mining and energy investment, a recurring theme at 121 Mining.
Malchuk posed a direct question: if African energy projects are critical to global industrialisation and transition, yet capital hesitates, is that a structural problem or a perception problem?
Driscoll suggested perception has played a significant role, particularly during peak ESG-driven capital constraints.
“A few years ago you saw DFIs pulling back from petroleum projects and people exiting coal,” he said. “I don’t think it’s a structural issue. I think it’s a perception or reputational issue more than anything at the moment.”
As energy security concerns resurface globally, sentiment is shifting. However, African jurisdictions remain dynamic. Political transitions can rapidly alter investor confidence, reinforcing the importance of long-term positioning.
“Just because things are good today doesn’t mean they’re going to be good tomorrow,” Driscoll said. “And just because things don’t look good today doesn’t mean they’re not going to turn.”
Funding Is Not the Finish Line
Both panellists challenged the assumption that risk materially declines once financing is secured.
Ann, who previously worked at a large debt fund, cautioned that raising capital introduces a new set of pressures.
“I get more worried once you get the funding,” she said. “Now we’re going to see how good they are at actually doing business. It’s not about finding it. It’s about paying their bills, keeping to their budget and delivering.”
Cost overruns and execution failures remain persistent industry risks. The risk-taking mindset that drives exploration success does not always translate into disciplined project delivery.
“The mentality of an explorer is not necessarily the mentality you want as you go to build these projects,” Driscoll added, noting that track record and execution capability become decisive at later stages.
Ultimately, capital backs demonstrated competence. “I’d like to say it’s always driven by the geology,” he said. “But the reality is communication is important… they’re backing you and the team.”
Transparency vs Promotion
The discussion also examined whether companies benefit more from technical transparency or market-facing promotion.
“There’s no one-size-fits-all,” Driscoll said. Some technically led companies focus on delivery but struggle to generate investor enthusiasm. Others excel at narrative-building but may face scrutiny around substance.
Ann argued for balance and authenticity.
“Transparency is important… telling the truth, trying to set reachable goals,” she said. “People don’t like to be surprised.”
As a non-technical CEO, she emphasised translating complex information into accessible language. “If you’re not getting the message to everyone, then you shouldn’t be communicating.”
The Real Differentiator
In closing, Ann urged investors to conduct their own rigorous assessment.
“Do your homework,” she said. Jurisdictional stability, project scale, management capability and funding resilience all matter.
The panel’s core message was clear: projects are rarely rejected solely because of geology. They are delayed or dismissed when structure fails to align with story, and when leadership fails to inspire conviction.
At 121 Mining Investment Cape Town, one conclusion stood out: capital may be structured in spreadsheets, but it commits on confidence.
