Notes from GGP Presentation at Diggers and Dealers - 02 Aug 2022

[DipSard]

Notes from GGP Presentation at Diggers and Dealers - 02 Aug 2022

Interview: https://youtu.be/qmAWxHYWkro

Slides: https://www.mediafire.com/file/y7w24o56 ... g_2022.pdf

***Quick edit of very messy YouTube Transcript exports***

* Thanks very much for joining us for the final session of the day my name is Digby Gilmore executive director of insto sales with Canaccord, we'll get straight into it with Greatland Gold, Greatland's flagship asset is the Havieron gold copper deposit in the Paterson region of Western Australia being developed in joint venture with Newcrest, the asset is 45 kilometres from Newcrest Telfer mine, this infrastructure will significantly reduce the project's development capex operating costs and the carbon intensity, truly world-class deposit, look forward to hearing the update so please welcome Shaun Day managing director of Greatland.

Thank you and to start I’d just like to thank the diggers community for what is already a terrific event this year and also thank Canaccord the major sponsor and Digby for the kind introduction.

On behalf of Greatland, I really appreciate the opportunity to present here today as many of you would be aware Greatland is London listed but with our operating assets here in Australia it's a great opportunity to build our profile here and what's more it's worth me sharing that we are presently reviewing the opportunity to undertake an ASX cross listing.

I think for us we celebrate and we want to continue to build on the strength of our London listing but potentially there's the opportunity to get the best of both worlds, we're an Australian asset, Australian management team, a peer group here on the ASX and I think if you look at the observed multiples over time, they typically trend higher or trade higher moldables here in Australia so there's an opportunity to benefit from that arbitrage.

In terms of our value propositions, it's very clear, we have a world-class copper gold ore body in the shape of Havieron, we commenced the box cut and in turn the decline in February of 2021 - so we're effectively around 18 months into that development for first ore in early 2024.

We have a rapidly growing 6.5 million ounces gold equivalent, the last update that was a 50% growth and if you look at the updates the geological updates since that since that December drill cut off you should have a lot of confidence that continues to grow strongly.

We have a joint venture partner in Newcrest and with that we have access to the Telfer infrastructure just 45 kilometres to the east and that delivers us a low capex low risk pathway to development.

We continue to participate in the exploration success both at Havieron and then a long strike to the north west onto our 100% own scallywag ground and beyond across the Paterson.

And then finally we've invested in the team and with that to make a successful transition from explorer to underground miner.

And I always like to orientate people around our strategy, it's very clear with three pillars delivering an expanded Havieron a world-class asset, continuing to invest in the drill bit and unlock the operation the option value within exploration assets and to consider and investigate opportunities for financially disciplined growth opportunities to augment that organic growth that we have around the Havieron deposit.

And these next slides kind of interesting for those who follow the Greatland story, so the original farm in agreement back in I think 2016 provided our joint venture partner Newcrest an option to acquire a further five percent stake in the company in the asset, the milestone for that was around this the PFS which you can see came through with about in October 2021 and what that did is set a benchmark but really only looked at a fraction of this ore body.

It looked just at that southeast crescent just at the top part of that southeast crescent so it really was a fraction of a fraction of the total Havieron opportunity, so independently or unilaterally in March Greatland came out with its own update to the resource which was a 53% growth, we updated we created our own mine plan and updated the reserve by 50% and we took that into that option negotiation discussions and if the party was an unusual agreement such as if the parties couldn't agree I guess the arbitrator had to make a binary choice.

It couldn't compromise on the two values it had to choose one or the other which is an interesting proposition to be faced with, but we were I think very successful in that process, we increased the value by USD $1 billion so that was over a five-fold increase in the value of that asset, with the valuation date of that option just 64 days following that PFS and we did that with the team we have.

We thoroughly prepared we put a huge amount of effort to that and it was very rewarding for our shareholders to deliver that outcome but I think it's also important to understand this was a highly prescriptive process right down to prices decks used and those elements and so this sets an option price not a value.

We continue to have a strongly growing southeast crescent which and the extension of that doesn't get fully taken into account, there's the bulk mine areas which augment that southeast crescent which again don't come into that kind of platform and the ongoing exploration upside, so although it was a pleasing result, it fundamentally the best days of Havieron are ahead of it, we still haven't started extracting ore so we continue to build that inventory and this is a beast of an ore body.

And what turning to Havieron specifically, you know it's this confluence of factors we have a world-class asset tier one jurisdiction, it sits next to existing infrastructure and it's not just the Telfer processing plant, it's the bitumen airstrip, the power gen sets, the store sheds, the critical spares all being in place and then in addition to that we have Newcrest a tier one operator as our partner with 35 years’ operating experience in the Paterson region.

And this is effectively a brownfield development for them and if you have a look at the growth in our resource since our maiden resource it's been a 43% compound average growth rate (CAGR). This continues to evolve rapidly we have over 218,000 tons of copper within that as well and the best gold mines have copper. Our reserve sits at around three million ounces gold equivalent depending on what copper price you use sitting up at 3.7 grams, it's a high-quality ore body and it continues to expand.

This slide shows the evolution in the mine plan, on the on our right side of screen we effectively see what it looked like at the time of the PFS and then with our update and you can see that growth not just at depth where it remains clearly open but also at the lateral levels and effectively it's the density of drilling that is determining that ore profile.

But the best number on this page is actually that 86% there that is the conversion of the resource into reserve and what that is telling you is this is a high-grade resource ore body sitting next to infrastructure, it virtually all comes into the mine plan and I think that's a hallmark of a high-quality asset and that's certainly the highest conversion factor I’ve seen in my career.

This is actually my favourite slide; this is the ounces per vertical meters that pink line or the red line is where we're sitting at the time of the PFS and then that pink line shows the growth.

With the drill cut-off dates that's about 10-month change to that ore body so in that top half of that ore body we're already over 8000 ounces per vertical meter and then six months ago I was sitting here saying look well it doesn't cut off at depth.

Where you see that red line come in that's not a cut off - again it's just a function of drilling density and of drilling information another six month or 10 months of drilling and we've dropped that down another 400 meters and on the left hand side of axis of that chart you see the meters drilled on each level and you see the correlation between ounces discovered and delineated and meters drilled.

So, as we continue to drill this ore body we feel we continue to walk out that ounces per vertical meter to the right of page continue to build it and also at depth and ultimately that is a far more vertical line down the page, it's a very consistent ore body and we build that out and what ounces per vertical meters deliver for you is incredibly efficient in-mine infrastructure so a good capital efficiency together with a low all-in sustaining cost (AISC).

This next slide is a little bit busy; we're looking at it in plan but I think it helps orientate you in your body because what we've really looked at today is this horseshoe in the pink down in the southeast.

That continues to expand as we tick through the layers, it's just like a Swiss watch beautifully consistent but also, we have this northern breccia that comes through here and what we're seeing as we drill that northwest pod is drilling linking up with that northern breccia to create this good grade corridor coming in and touching right up to the southeast crescent and then perhaps even more excitingly is this eastern breccia.

That eastern breccia I think we announced at diggers 12 months ago with a couple of 200-meter intercepts, that's just continued to deliver at good grade, if you have a look at our last update we expanded it significantly to the north, down in the south we've got some hits some of the highest hits we've got in the ore body more reminiscent of the southeast crescent, 50-meter intercepts six grams plus copper nine grams plus copper.

It's two from two but it's exciting to have another area that looks like it's very high grade and then in addition across the mining lease for those that listened to Fraser from Newcrest speak yesterday, yeah, we have Havieron North, Zipa and Meco, we have a number of very high-quality targets that we're very keen to continue to chase.

And I talked about those ounces per vertical meter and what does that deliver, a lowest quartile cost, some 643 dollars an ounce and where does that put us on the global cost curve - second lowest cost gold company on the planet and given Polyus is Russian and a bit busy in Ukraine right now I think that makes us the lowest investable gold company on the planet.

I won't talk at this to length about the inflation but I think what I do want to convey with this slide is we're relatively insulated, we're leveraging existing infrastructure, we have 225 people at situ at Havieron, another 1200 next door at Telfer who are used to the flights, like the food.

And of course all of this data is being presented in conjunction with Newcrest - credible conservative, a very capable organization with meaningful contingencies and I think that should give you confidence around the data we present.

So, I just want to conclude on the team, I think all that we've achieved this year is a reflection of the team we've built both in terms of demonstrating the uplift in the value of the asset to the benefit of our shareholders but giving us every opportunity to unlock value in that portfolio.

And what we've done is taken a very strong exploration team that we had 18 months ago, augmented that, bought in resource geology mining engineering processing finance legal commercial to really be good owners of Havieron and give ourselves every opportunity for success so… thank you very much.

* Thanks very much Shaun, I think we've got time for one quick question, the eastern breccia… how does this evolve into a bulk mining operation and what does this mean for your cost per tonne?
- Yeah so, I think when you look at it briefly, this southeast crescent continues to be a sub-level open scope (SLOS) throughout the entire life of this mine. I think it's like the Cali mine with Newmont in the northern territory, you're just going to chase that down to the centre of the earth, whilst you're doing that, the eastern breccia actually sits a little bit outside of that.

It's good grade, you come in from the bottom, I think it really lends itself to a block cave, you can develop that for 10, 15 years and of course the benefit of these bulk mines is you put down further downward cost pressure on what is already a lower cost, a low cost mine.

And you have the benefit of your denominator for cost being not just that three to four hundred-thousand-ounce kind of south sub-level open stope but that additional ounces coming in from the bulk mine, so I think it's very positive and it also takes Havieron to the next level.

* That's excellent, please thank Shaun Day, Greatland Gold, thanks again.

Download Link:
https://www.mediafire.com/file/y7w24o56 ... 2.pdf/file

The End.