Key Notes from the InvestorMeet hosted GGP AGM - 14 Dec 2021

[DipSard]

Key points from the InvestorMeet hosted GGP AGM - 14 Dec 2021

Interview: https://www.youtube.com/watch?v=J_wmoaUkWQs

RNS link: - https://www.lse.co.uk/rns/GGP/result-of ... ecd9p.html

Slides: https://www.investormeetcompany.com/inv ... esentation

Resolutions and outcome
- Read link below for details of the 9 AGM resolutions that were voted upon:
https://greatlandgold.com/wp-content/up ... e-2021.pdf
Note: Typo in resolution 7 with an additional zero

Presentation
*A year to remember
- A year full of activity at GGP and Havieron asset
- Development of Hav - Box cut, formal opening ceremony, underway with decline development.
- PFS study focused on SE crescent shows capex is reasonable and achievable for GGP and shows GGP would become 2nd lowest cost gold miner on the planet.

*Organisational Capability
- A year of transition from explorer to developer and end goal of becoming a mining company
- Evolved from a geo focused team to augmenting with mining, engineer and processing capability
- Matured too in terms of finance and commercial ability with appointment of CFO etc.
- Extraordinary team for a company at this stage of its lifecycle, quality of staff is exceptional given the competition within Australia, attracted by working on what could be a multi decade opportunity at Hav.  

*Greatland’s Growth Story
- Focus and deliver Hav on time and on budget
- Continue to invest in drill bit to unlock value at other exploration targets
- Looking to access new areas such as Ernest Henry (Think he meant Giles?)
- Look to optimise portfolio with assets that could be next Hav and also leverage broader base

*Catalysts for future value
- Very focused on SE Crescent in PFS study, still some ¾ of this ore body together with opportunity at E. Breccia to be brought into mine plan
- Even within Crescent it’s only a fraction of that part of High Grade backbone of ore body
- Huge potential when you consider taking entire expanse of crescent and open up to greater bulk mining opportunity that attracted Newcrest
- Have Jorc update on resource/reserves due
- Inaugural sustainability report due
- Aspire to be fully funded, have in place some cash now in addition to that loan facility with Newcrest
- Engaging with market now particularly with banks to achieve full funding for development of SE Crescent
- Did raise equity earlier, need to appreciate that having a cash balance is not instead of finance, augments ability to obtain bank finance such as when buying a car or house with a bank loan
- 90,000m of growth drilling planned
- Remember in 230,000 odd metres of drilling into this ore body, yet to have a drill that hasn’t intercepted mineralisation which bodes well for the planned growth drilling
- Feasibility study expected in 2nd half of 2022 which will take the 2mtpa outlined in PFS to 3mtpa (million tonne per annum), an increase by 50%
- Bulk mining potential with ¾ of this ore body
- Both GGP and Newcrest ultimately see this as being a continuation of the SE Crescent (Sub Level Open Stoping - SLOS) with a bulk mine potentially operating next door to that
- One mine - Two mining methodologies
- Discovery continues to be a focus for GGP
- Decline progressing, currently moving through the soft Permian area that takes longer than hard rock, around 400 meters of cover before getting to the harder country rock when speed can increase. Always been planned with relatively slow progress to start with, but as you move further down to the more compressed Permian rock things pick up and eventually with the harder country rock you have beautiful mining conditions.

*Sustainability
- Aid when engaging with ESG funds, great opportunity from ESG viewpoint with a Gold & Copper focus leveraging existing infrastructure which reduces carbon footprint
- Makes Life Of Mine (LOM) metal more ESG friendly, a huge competitive advantage

*Havieron - World Class Discovery
- World class discovery in tier 1 jurisdiction in close proximity to existing infrastructure including 1200 very skilled workforce from the diminishing Telfer operation
- Huge reason for Newcrest to get Hav into operation and avoid a gap year to retain this hugely experienced and skilled staff by late 2023 / early 2024
- (See image on next page): The dark red is SE Crescent stopes baked into PFS, rest of pink material is all SE crescent circa 5g material sitting next to the infrastructure, typically drilled to 75m drill widths vs the required 45m to enable bringing into the reserve yet.
- As drilling continues, we can bring more of that into the next study, high degree of confidence that all comes into the material.
- At depth, they’re seeing slightly better depths and better grades and extraordinary to be sitting at over 8500 ounces per vertical metre, will continue to expand as we bring in more across the full zonation. As they continue to drill, it will push out the vertical ounces per meter, which indicates an increased potential efficiency feeding into the AISC (All in Sustaining Costs) for the infrastructure to mining engineers, a factor due to the compact nature of the ore body.

*Havieron - Low Capex, Low Opex
- Will be the 2nd lowest AISC on the planet.
- Capex itself at $73m USD is more than manageable, can potentially augment with bank debt to minimise dilution.

*Exploration Portfolio
- Expanded holdings in the Paterson.
- Spent a lot time on access during year into Panorama and Ernest Giles for hopeful access in the new year.

Q&A Session
*Any plans to move from AIM to main market or dual list on NY stock exchange?
- AIMs been really successful, delighted with current shareholder base
- As company evolves, the board does continue to assess exchanges around the world
- For now, really satisfied with traction in London market despite the declining share price in recent months despite delivering excellent news
- Very aware that if don’t grow the share price and continue to communicate full potential of Hav - there is a grave risk that a takeover bid may come.

*An accurate ETA for completion of decline?
- 2nd half of CY 2023 is realistic, really looking like late CY 2023 with central goal of getting Hav into production in early CY 2024 to avoid the risk of a demobilisation of Telfer for Newcrest.

*In the 18th November fundraise, the RNS states that net proceeds are earmarked to fast-track development of Havieron, explore the wider breccia system, accelerate exploration on wholly owned tenements and pay costs associated with working capital and general corporate purposes, can you provide detail on these areas please?
- Breaking down how GGP is funded, we have the $50m USD facility through Newcrest which gives runway for the course of CY 2022 on development of Havieron (nothing unrelated).
- The additional funds from the equity raise raised the previously low $3m cash balance for a company of GGP’s size and gives an opportunity to pursue non Havieron activity, unlocking the full value within the exploration portfolio.
- The working capital aspects: to build a team to help understand review and scrutinise Newcrest information in a peer sense and invest in team to optimise it for GGP shareholders.

*In an interview last week, you briefly mentioned scallywag and the growth drilling at the NW of the main ore body at Havieron?
- Couple of rigs looking at the Hav North and Zipa targets still within the Hav mining lease, GGP incredibly optimistic about them as typically a North-West (NW) trend running through the Paterson region.
- Scallywag sits to the NW, but hitting some of the anomalies still in the Hav mining lease but slightly to the north of Hav proper gives tremendous option value and opportunity to be successful.
- Newcrest are equally interested in those targets, they represent genuine opportunities and those opportunities continue to flow straight onto our scallywag targets.
- Systematic process, area is under cover, don’t believe in expensive pattern drilling. Believe in drilling a hole, understanding that, reflecting on it, recalibrating understanding of the region and then going back in.
- Very much exploration built up from 1st principles and careful analysis, thinks over time this is the best way to create value for shareholders.

*Answering questions related to share price decline despite the excellent news flow?
- Focus on factors we can control, to some extent not always the SP, but can control activity as a team and continue to put out good news into the market such as stunning exploration results at Hav, growth in SE Crescent etc.
- Deliver extraordinary outcomes that go to creating value for shareholders and plans to continue to engage and communicate the above across.
- But of course at some point, the hammer will fall and shareholders might receive a premium if we get taken over but thinks to sell at this point in the cycle before fully understanding the full value of Havieron is a decision or outcome we might regret at leisure over the many decades that is the potential of this development.
- That is the challenge for management and Shaun and they are acutely aware of and focus on delivering shareholder value and continue to put time, effort and energy into that.
- Is pleased to confirm he can come up to London in the March quarter, so hopefully getting in front of people as well is all part of that opportunity.
- Reminds people of the catalysts as detailed before and all of those should give people confidence that you have in place a team that can drive value and events that the market can recognise as delivering value.

*How confident are you that you could defend say a bid at 30 pence from Newcrest?
- Any takeover bid is something that the board would have to consider in terms of value. Benefits of building a team with mining and process skills is that we understand the value of the asset better and better.
- Some processes that they undertake internally, such as updated resource and reserve estimates are another factor in understanding the asset better. Thinks the value of Hav is considerably substantial, you go through your whole career in mining looking for world class ore bodies in tier 1 locations and the fact that we have the additional conflux of sitting by existing infrastructure, a global major operating and being the manager with GGP is further decreasing the risk with rooms full of mining engineers, indigenous engagement, environmental permitting people that they can deploy to this asset have extraordinary low risk, low capex pathway to free cash flow and potentially a multi decade mine.
- Value is extraordinary and over time the will continue to communicate and create that value.

* When can we expect to see the Juri JV assay results which have been due since November?
- Results still not back despite the expansion of Lab infrastructure in Western Australia which was envisaged in helping to improve turnarounds.
- Just starting to get some results through, but they need to be processed, also did an Electrical-Magnetic Survey up on some of the Juri / Scallywag ground as well, quite a long tail of interpretation on that which is going to be coming through shortly too.
- Like to get it out when all in, hopefully in weeks not months, more likely very early in New Year now.
- States: it is drifting in, bit of a slow burn, believe me would love it to be quicker and we have some very impatient geologist’s wandering around the office just now.
 
*Can you provide the likely magnitude of the resource upgrade and an ETA?
- Have to be measured in terms of front running announcements, thinks Newcrest will come out with their updated resource in Feb 2022.
- Would like that to be aligned, so will continue to liase with them around that alignment.
(I assume what Shaun means is, by having GGP staff cross reference and agree on the resource estimate data before Newcrest release to market).

*Do you anticipate a trigger event that will entice more Institutional Investors (II’s) coming aboard?
- Thinks these things are multifactorial, through 2021 really started to engage with II’s who often need multiple meetings and want to see that you deliver the operation goals that you articulate. Thinks during the course of this year that they’ve built credibility with them.
- The most recent equity raise saw some 20 II’s new to the register come in, some with relatively measured parcels and it is all about them building confidence and engagement with GGP.
- Relevant catalysts such as the ESG report, updated resource estimates, funding/ bank financing, getting up to London to meet people in person are all important events and factors in the first half of 2022 and are in parallel with 90,000m of growth drilling and these continued exploration updates.
- Every geologist, every mining engineer, every person watching those updates just grows in confidence about the opportunity at Havieron.

*Can GGP be taken over without Private Investor approval?
- The answer is No.
- Fundamentally, if a takeover bid was received and the BOD thought it warranted being put to shareholders it would ultimately be in the hands of the shareholders. It would obviously have to be a compelling bid, this is a unique ore body with a low-risk pathway to free cash flow.
- Ultimately, it's the shareholders that determine bid outcomes but my gosh I think we’d want to extract a premium for an asset of this quality.

*Shaun, do you think the share price is undervalued?
- Yes, it’s a tremendous ore body in a tier 1 jurisdiction next to infrastructure.
- Globally unique, hard to see an asset of this quality in a jurisdiction like this with a quick pathway to production, expect to be in free cash flow in CY 2024, this is for a discovery from 2019 that literally in 2 years’ time we have started developing.
- That is unusual, the typical timeframe to develop an asset in Australia is around 10 years, talks to the quality of Hav, the conviction of GGP and perhaps Newcrest too in being willing to support putting Hav into production early.
- Unique proposition and states shareholders of GGP should be popping champagne corks every day about the quality of this ore body and how it consistently and predictably continues to deliver.

*Alex Borelli closes AGM with thoughts on share price and takeovers
- Analysts report valuations in the market on GGP currently have expectations that the SP should be around the mid 20’s and above.
- If there is a takeover approach, there is a formal process that is adopted, although not subject to shareholder approval, a form of acceptance will go to shareholders from an offeror, but the offeror would seek to have a board recommendation and it is incumbent on us to have a valuation report on the company.
- So we would go through the motions of being totally considered on the value of any offer that was received, but of course we’re not in that position at all at this stage.