Town Hall Recap - 09 March 2023

[DipSard]

Very quick recap of non-broadcast Town Hall – will tidy up when I get time!

General
- Unlikely we hear directly from new directors as he will be main voice for shareholders and IMO their role on the board is more top level than shareholder comms, it's partly to help bring in capital and growth opportunities and assist Shaun in strategy around their various specialities. The funding as we have in place now was very much dependent on their presence too and he's mentioned the mentoring and guidance around areas such as the option exercise. Also, these are some ridiculously high level professionals for the likes of GGP, amazing they even considered us.
- ‘Consolidation in the Paterson’ is as much about a partnership approach is my feeling from his comments than a heavy M&A approach of buying up whomever we can as he uses the word counter-party often
- Scallywag is too early to state as another quarter, half or full Havieron and the same disciplined and technical approach to exploration will continue but very good progress and geo team is excited by early results to date here and Black Hills
- Liquidity has always been a key requirement for GGP to keep up with NCM and influenced the financial approach to date to avoid getting caught out and being forced to perhaps lose a percentage of Hav through urgent funding requirements

MRE / DFS /DTM
- Overarching message is that when it comes to advertising and growing value of Havieron, it doesn’t make sense if we could end up buying it for ourselves so a rogue MRE not best approach for now
- Saw NCM start to lose focus on DFS in Nov/Dec last year so perhaps when initial NEM bid came in
- He expects DFS to be released post outcome of NEM Bid (a 6-month process in his mind)
- Interesting that Shaun called DFS a ‘nice to have’ but that although aligned with NCM there wasn’t inexhaustible patience here if we wanted it and of course the ‘DTM’ made long ago when decline commenced as usually the DFS builds the case for this kind of work to be initiated so in theory we could see stoping without a DFS
- The team already acting as if they ‘own the asset’ and could release their own within weeks if needed, no doubt same for the MRE, working drafts in place and updated as drill data keeps coming in etc. IMO
- JV agreed before his time but perhaps was a mistake to trade early works for scheduling of DFS but as noted earlier, this is not a problem as if needed pressure can be applied.
- Work is commencing as BAU with Havieron such as the decline, work is ongoing and in full progress.

ASX / INSTO’s
- A couple more on board of late and for some the ESG rating is final hurdle
- As oft stated the ASX listing is where he hopes for both mandated entries and also from interested parties who have expressed a desire to him
- Consolidation is required to hit threshold of 20 cents per share for listing on ASX, 3 or 5 to 1 was mentioned during informal TH but there were other mentions of 10 to 1 etc. in more informal ‘huddles’ during sarnies too I understand
- TopCo or ‘TopHat’ as Shaun called it (thanks for explanation JerryS) perhaps set up on ASX listing to provide cost and legislative efficiencies through dual listing workflow challenges with Hav placed under ASX listed body and GGP as an entity under AIM, suspect this would also assist in an acquisition of Hav/Telfer scenario, so he is planning ahead, anything pursued such as this will be subject to shareholder approval
- Timeline is June or July for ASX listing

Newmont Bid and Outcomes
- Shaun IMO seems very certain through insight and experience that he expects NCM to be bought out and an opportunity to acquire Hav/Telfer to come to fruition as initial starter mine is a ‘small’ asset for an enlarged entity compared to other more developed assets with a current larger production profile – akin to much of the analysts coverage in media speculating on asset stripping. (Post Goldcorp acquisition NEM did indeed make a lot of 'optimisations' in portfolio within 12 months as voiced by their own CEO in a presentation lately).
- Should have confirmed during April if bid will be pursued
- Theoretically if we ended up with just Hav (unlikely as Telfer and Hav are co-dependents to NCM or NEM) it is very feasible to consider an independent plant when compared to trucking ore to Telfer over the decades. NCM were fixated on extension of Telfer to spend time looking at other options but in a theoretical sense, a new plant with modern tech and ESG focus would be very achievable.
- NEM have conduced DD of NCM during Goldcorp acquisition so this would be a continuance of previous DD, so a faster task than might have been
- Shuan has been fostering a relationship with NEM and other majors for a few years in anticipation of such developments
- Wyloo are a supportive partner more inclined for assistance of GGP in acquisition than a JV approach but if needed could purse that option and will be a great support in obtaining full value if NEM decided to buy us out as they don’t need an injection of cash, what they desire is long term growth and ROI from projects such as Havieron
- Doesn’t foresee the Oz Government having major concerns as US based bidder vs say a less friendly country and the assets are predominantly PM vs lithium etc. with a more strategic focus
- Shaun sees a strong opportunity for a ‘sensible deal’ that would be accretive not dilutive for shareholders and very confident of his ability to obtain debt and support from cornerstone investors such as Wyloo and the likes of our current tier 1 banking partners ANZ, HSBC and ING

[Panama]

Thanks Dip,

A very well thought out and detailed summary

Good to see you

Best

P

[DipSard]

Hi Panama, I'm surprised you can remember after all that wine you lush

I'm joking of course and lovely to meet you again and ditto on your fab posts over on LSE this morning, you should paste them in here