Notes from AIM ON AIR interview - Part 1 - 02 Jun 2023

[DipSard]

Notes from AIM ON AIR interview - Part 1 - 02 Jun 2023

Interview:
https://youtu.be/tqObMGixczo

ASX Media Specualtion RNS:
https://polaris.brighterir.com/public/g ... ry/ryevl8w

Rio Tinto Farm In RNS:
https://polaris.brighterir.com/public/g ... ry/r77q27r

Havieron Debt Funding Update RNS:
https://polaris.brighterir.com/public/g ... ry/w9j05ex

Juri JV RNS:
https://polaris.brighterir.com/public/g ... ry/rnke3jr

* Good morning you're watching aim on air we're specializing in connecting companies with its shareholders is what we do best, hello and welcome back to aim on air my name's Liam and today I'm pleased to be hosting Shaun from Greatland welcome to the show Shaun
- hi Liam and thanks again for having me on the show

* It's always a pleasure to have you here thank you very much for coming, yeah GGP is a leading development and exploration company focused on precious and base metals they are developing a world-class Havieron gold copper deposit in the Paterson region of Western Australia while delivering multi-project exploration upside in a low-risk jurisdiction.
Today's Show is a little different from our regularly quarterly catch-ups, we've got a pile of questions from shareholders that we're going to get through as best we can but first, we've had two news items released to market today that caused a hasty rewrite of my script, fortunately being a shareholder driven Q&A I've had the community help me write it including our icebreaker Shaun so the icebreaker today.
Tony has said one thing I often wonder when he pops up in London is how did he get here has he used the Qantas direct flight from Perth and if so, how did you feel afterwards
- thanks Liam actually to be open with you the Qantas direct flight which
I don't always take is my absolutely preferred way to travel
- 17 hours on a plane you will fall asleep and the service is excellent so they'll bring you food when you're awake and working but it lands at about 5 30 in the morning which sounds bad but it's free you stay awake till nine PM that night and you're on London time it is there is nothing better than landing in the morning into London however the trip back I normally struggle with a lot more and struggle with it when I get home.

* We woke to news this morning that Greatland announced the company had entered into a farming and joint venture arrangement with the global mining group Rio Tinto to accelerate exploration across 1884km of highly prospective tenure within the Paterson province of Western Australia located near their companies world-class Havieron gold copper project.
Now Shaun with so many questions we could ask here but before we do could you tell us about the deal that you and the team have made with Rio Tinto, please?
- yeah thanks Liam look we're really delighted with this transaction it's a earn-in into new property that we didn't previously have an interest in so it really expands our footprint across the Paterson
- it's a big portfolio and you know quantity does have a quality of its own but perhaps most importantly we feel it's the best untested ground in the Paterson… the some of these anomalies that sit there we just think are outstanding yeah there's there's some Havieron like opportunities there which we think look more like Havieron than Havieron does and also there's other areas where you know rock chips have identified gold and copper for more of a Telfer start style deposit and again they haven't been drill tested
- so look the team's really excited here the exploration team are kind of just bursting to get out on the ground and we think we'll actually be able to get on out on the ground this calendar year and again Rio Tinto has done a brilliant job
- they've done a huge amount of geophysics and litho chemistry work they've identified fantastic targets, there's been they've done that so well they've got a number of them Heritage cleared so some of the top Target some including some top 10 targets for us we believe we can get a rig on the ground in 2023
- so you know it's a short fuse to get underway here which is also exciting.

* That's wonderful thank you how much would this exploration cost Greatland?
- yeah look it’s a meaningful commitment but yeah I take people back to our strategy you know that three pillars of strategy we want to deliver and expand Havieron we want to continue to invest in the drill bit and look at inorganic opportunities for growth and this is this inorganic opportunity for growth
- we've expanded our footprint and it dovetails perfectly into that second item of investing in the drill bit and increasing the option value in our stock for exploration success
- so we need to spend at least 1.1 million up to December 2024 to a minimum of 2000 meters of drilling but within the first four years to earn 5% it's a 7.1 million commitment to achieve no less than 7500 meters so and then we move into the phase two where we spend another 14 million over three years to take us up to a 75% interest and that needs at least 17000 meters the but… look these are fantastic tenements we want to get on there we want to invest and drill on them
- over a seven year period I think that's a reasonably measured amount, truth be said we'd probably like to expedite that expenditure and be doing even more than that runway but it is world-class territory and we're you know excited about that prospect.

* Wonderful thank you, Barbara asks presuming we get access to all of these historical drills surveys as part of the JV can we also publish all of the detail of what they've discovered and everything that we find in the future or do Rio ask for the usual radio silence as part of the JV terms?
- we are the manager in this case and I you know what I'd like to say is you know I'd like to think that the days of Greatland outsourcing management of its core assets are behind us, you know what I really want us to do I think we've put together a tremendous team a tremendous technical team and we think we are really good operators of this asset so in answer to Barbara's question, no we won't be restricted obviously we'll be you know reasonable, measured and constructive with Rio Tinto around announcements but fundamentally we'll be able to release information to the market as we see fit and I think that's a great opportunity
- I should add in this we earn into 51% we and we are manager from the start once we achieve 51 percent, Rio Tinto can decide to co-invest with us and retain their 49
- we will still stay manager but I think for us to have a discovery that's big enough for
Rio Tinto to decide they want to stay in and co-fund I think we've had outstanding success already, so there's plenty of room to to partner on you know a fantastic project with Rio Tinto but we will be manager of that project and that's exciting and again I think it reflects well on us that that we were able to undertake this transaction with Rio Tinto
- but I think it you know it also reflects well that Rio Tinto decided to choose us as their partner which yeah which I think shows the evolution in our platform.

* So, I was looking at the RNS that you published this morning and we know that there's a Northwest Southeast trend line from Rudall all the way out through to Winu, does this is this part of your thinking as to why you've been looking at this land?
- yeah Liam is an insightful question we've talked about that those Northwest structures kind of running diagonal across the page through the Paterson and if you would draw a circumference you know around a 50 kilometre circumference around the Telfer mill, you've really seen the centre of gravity the majority of these South Patterson tenements that we've picked up today fall within 50 kilometres of the Telfer mill and also interestingly on that same map we've drawn a 50 kilometre circumference around Winu and you see these tenements are outside of that 50 kilometre range
- so we feel you know that's why Rio Tinto has focused on its near Winu tenements and we understand appreciate why they would do that just as we've focused on tenements around Havieron and around Telfer so we can take advantage of that existing infrastructure but you're absolutely right we think these are on structure and we think you know we're looking for Havieron type structures, we're looking for Telfer type structures and we're looking for Winu type structures, you know this is elephant country and you know we think we have a fantastic opportunity for exploration success.

* Okay so you've also released to Market this morning you've had a letter of support received from existing relationship Banks to enhance and extend financial flexibility what does this mean?
- okay well in essence that means ANZ HSBC and ING continue to be you know really supportive and we're very appreciative of that of that relationship
- you know I think we've done really well here you know we've put this facility in nine months ago we haven't paid any fees on it yet which I think was a bit of an Indulgence by the Banks and again reflective of the relationship but what we've basically gone back and said guys look we don't envisage drawing this until the that definitive feasibility study is ready
- and to be honest this is just prudence we don't want to I don't think anyone wants to borrow money unless they know their time frame and capacity of repayment and you know I think occasionally when I talk to shareholders you know borrowing corporately isn't that much different to you know getting a home loan or a car loan, you know you want to have visibility on how you're paying it so we think that's important and what the banks have basically come out and said look we're going to stand with you come back to us you know that they haven't changed the term sheet for all intents and purposes
- but what we have done is said that look let's come back and draw these once that feasibility study is ready and particularly given the feasibility study is required for commercial production
- we get to the top of the your body in March now that doesn't mean commercial production starts the next day but we start setting up the Stopes the next day
so, the fuse on this is pretty short yeah, I think we continue to think that it's not going to come out until after the Newmont/Newcrest transaction is resolved either way
- yeah we could be surprised but that is my sense for it… so but we think it does have to come out soon afterwards, it needs our consent, the way the joint venture is designed it has to have a definitive feasibility study and we would not waive that requirement you know under any foreseeable you know circumstances so we think there's a pretty direct line and we have the financial flexibility to wait so we think it's a sensible way to go and just to remind people we have a 55m US dollar loan from Newcrest
- if we were to touch this other facility we have to repay that one so you can't nibble if that's a banking phrase at this facility if you draw it you have to draw you know say 80 million to repay the Newcrest facility plus whatever you are looking at so it's a big commitment
- it's a the first step is a big one and that's why we're a little more measured in when we take that step.

* That does make sense and actually fills in quite a few blanks that that may have popped up over the last six to nine months so I just want to clarify that you've suggested that the feasibility study is going to come along once everything is said and done with the contingencies that are going on with Newcrest?
- yeah the we understand they're distracted and it's a big thing you know being taking over and you know and I'm sure there's a lot of people working very hard in both those organizations to you know to complete what will be the biggest transaction ever in the gold sector
- yeah it may surprise us and something will come out before that but right now our expectation is this get sequenced and we understand that and can work within those parameters.

* When it comes to an operation like what you've got a Havieron does the corporate influence the operation at all… so I mean in my mind all that's going to happen is the guys that are or sorry the boots that are on the ground their shirts are going to change the name but the operation continues or is there is this likely to stop and start along the way?
- look I've lived this experience I think with Northern Star we acquired five sites from Barrack and Newmont and you're absolutely right although there's a huge amount of corporate work which we respect and acknowledge the boots on the ground as you describe them is a good phrase they don't change
- you know at some point their shirts change but we integrated three Barrack sites and two Newmont sites and really that was the change at the actual operating site was very measured we like to think at Northern Star we brought in some increased efficiencies and drove enhanced returns over time yeah but fundamentally if you were on that crew flight you still landed on that same airplane landed at the same strip back in the same bed ate the same food and went down the same Hole in the ground to go mining
- and yep there's you know there's some efficiency drives and there's some improvements but overall it's a very those guys stay focused on their role which is staying safe and Mining successfully.

* Brilliant and coming back to the funding has there been an extension to the amount of debt required to fund the Havieron project or does it still remain as designed?
- it's Steady As She Goes, you know you know to some extent every month that passes you know money has been spent so the cost to complete just becomes less and less so we you know the banks have stood by for per se and quantum that Aussie 220 million seven year facility which is outstanding
- we continue to say that's clearly enough in fact there's a very good buffer based on the pre-feasibility study
- obviously we want to see the definitive feasibility study before we are definitive about the final outcome but right now that decline remains on track you know we I think the original description was we would be at the top of the ore body in the first half of calendar year 2024
- I think I've typically kind of said to people where a little bit ahead of schedule we feel march is achievable we haven't changed guidance you know if we end up at June that's still the result we expected but it's nice to be a little bit of ahead of the curve so this is this is good and time is money if we can keep to schedule prima facie you're a lot closer to budget than you'd otherwise be.

* That's understandable thank you so we have over the weekend I've been gathering questions from shareholders to put to you directly and this is a new format for us here on this channel but so I'm going to try and go through these questions, not all these questions are we going to be able to ask but I'm hoping that Shaun will answer most of them as he answers say somebody else's question so I'm going to start with Newmont if I may and so the first question is from Rob and he asks what happens if Newmont decide to mothball or slow down the Havieron Mine Development what is the trigger that would allow GGP to make an offer to the first refusal on Havieron on for the first additional 70 percent?
- oh look Rob I there is a mechanism in the joint venture around if there's a you know the decision to mine if one party decides not to the… yeah there's a process whereby the other party you can go ahead …so that is kind of contemplated but of course the decision to mine that Havieron Greatland was made back in February 2021 I think over half of it has been spent on this asset to continue their asset and to take it all the way down to stoping and then pause would be I think without precedent and I think you know maybe one of my terms of phrase here I don't think we could be that lucky to be you know to have a mine set up ready to go and your partner says you have it, would be extraordinary, I think if a party decided not to hold it they would sell it and monetise it but the it is contemplated in the JVA but I think it is very unlikely to have any application.

* Right okay thank you, as Simon asks if the opportunity to purchase the 70 percent presents itself there's a theme here what will be the biggest challenges in replacing the outgoing expertise such as block caving techniques and workforce?
- look you know firstly this is our hypothetical question you know we don't have any visibility that would happen
I think Newmont you know would see a huge amount of attractions in Havieron, it's tier one jurisdiction, lowest half cost curve asset in a jurisdiction indeed where they operate other assets?[/b]
- if you asked me about the expertise I think I might reference back to what we said before the boots on the ground don't really change there's a huge amount of experience and technical capability at those sites that whether they're wearing a Newcrest badge or a Newmont badge will continue to operate you know at a really high level and when we really respect and appreciate what the team does
- at a Greatland you know I think I've just described before that to be a good owner of Havieron to understand its value to be able to articulate its value we've brought in I think a really great team and a number of those people I've worked with before and I think that gives us the top of the pyramid
- we're not a huge organisation but we have that top of the pyramid that allows us to contribute that leadership to contribute the technical insights to make Havieron more of a success in partnership with these Global majors.

* Okay thank you I'm going to flip it the other way now with a question from Alex who's asked I'd be interesting to know if Newmont do acquire Newcrest but didn't want to offload 70% but wanted the whole nine yards themselves but they didn't see your eye watering share price as you've previously mentioned what data does he tend to use to justify his eye watering share price?
- okay thank you I'm glad that the very lateral the so look I think you know ultimately yeah if someone puts an offer to if you find it compelling you potentially sell, if you don't find it compelling you don't sell
- now there would be certain prices where we might view that is compelling and put it to shareholder
- there would be a whole range of values where we would say well that doesn't even warrant you know going to shareholders, it's not our plan to sell but if someone was to pay us full value for it I think we would have to seriously consider it but ultimately it would be a decision of shareholders and I think what people should take some comfort with is having a strategic holder on our share registry as Wyloo for a formidable organisation who are incredibly supportive and we're grateful for their support
- I think they provide a certain level of comfort that we would not easily be taken over for an opportunistic value that someone would have they would be able to help us extract fair if not full value for the asset.

* So, the for instance and I'm kind of Off Script my own script now the current market cap is absolutely no reflection to the work that you've been doing for the last two to three years that's not yet been disclosed to Market with everything that's been going on?
- I've got I can't comment on SP okay other than to say you know we like to think
we've done some being really successful in the last two years in terms of setting the conditions for long-term success.

* Perfect that makes sense thank you, Dip says the Newmont deal is throwing up opportunities and risks aplenty, could you highlight the key opportunities and risks that you can see ahead and your strategy?
- We view Newcrest really positively we view Newmont very positively I think you know it's a credit to the quality of the Havieron asset that this calibre of counterparties are joint venture Partners or will evolve to be JV partners
- so I think with any change there's risk I mean we've talked about operationally there's going to be a huge amount of continuity I think we have continuing the Greatland team that I think also helps mitigate that risk but we're also really excited about what Newmont can add
- I've worked with them before they're a super impressive organisation… you know I actually see by far the opportunity outweighs the risk in terms of the transition to Newmont, we will go from you know a 20 billion you know Global major in Newcrest to a 60 billion Global major
- I think we should be excited about that.

* Very much so and the last one on this particular subject Steven’s asked about the elephant in the room he wants to know if you've already started conversations with either NCM or Newmont around getting your hands on more than what you already own and then wants you to elaborate if you're able to?
- Oh look I don't think I could comment on that but what I will say is look I think I would imagine Newmont would be really focused on completing their 20 billion dollar transaction before they start thinking about how they will deal with individual assets or you know how they think about them in their portfolio
- you know I'm happy to say I know the Newmont guys, I have a good relationship with them I've dealt with them before but yeah I'd also respect that relationship and give them the time and space to focus on what is even by Newmont’s standard a pretty transformational transaction
- and I think you know I think part of having a good relationship is respect to people.

* No that's that that's grand thank you so I'm gonna move on to the ASX next now it should be noted that obviously we do anticipate documentation coming our way which will probably answer most of these questions already so I just wanted to caveat that before we go into this… Peter's first question is why is it so important to rush to the ASX which will probably involve consolidation when we've been doing quite well on AIM?
- yeah, look thanks Liam and Peter for the question look I think it's all you
know I think I've referenced about setting the platform and the ground conditions for long-term success, yeah as I see London's been hugely advantageous to us I like to think we'll continue to be so, we are not transitioning away from London
- what we are trying to do is pull in Australian shareholders as well, Australia is the fourth largest pool of capital on the planet, it probably has an oversized proportion of that dedicated to resources and then you have an Australian asset with a I like to think a reasonably well-known and trusted Australian board and management team, I think we present another attractive opportunity for Australian funds to invest
- Australian funds are not bringing selling because they're underrepresented on our share register they are new buying and you might say well why can't you just get them to come and buy on London without the Australian listing because a huge amount of money in Australia is mandate locked to ASX docs, that doesn't
mean they have to buy on the ASX but you have to be listed in some way shape or form on Australia to fall under their mandate and they are some of the largest funds on the planet in resources
- so we think it's attractive we think it potentially increases demand for our stock

* Brilliant, Rob says do you believe there will have to be a share price
consolidation prior to ASX entry or do you see the share price catalyst over the next period pre-ASX help you to reach the required value?
- look it's a good question by Rob I think it implies his understanding that you have to have a 20 cent minimum price on the ASX, roughly speaking our translation would be a little bit underneath that so yes of course we'd be delighted if organic share price growth solves that puzzle for us and hopefully today's announcements are a step in the right direction
- but look I think I've said before we would talk to the ASX about a waiver from that we'd also look at a consolidation and we'd also think about five billion shares on issue and remember I think 4.3 billion of them were on issue before I joined is really unusual in the Australian context and I'm pretty sure it's unusual in the London context
- so it is something we think about whether we should whether we would take the opportunity to fix it, if we didn't have to do a consolidation because we had an ASX waiver perhaps we wouldn't if we did you know then then we'd have to address it so it's something that we could go either way on but we think in terms of getting traction with funds I do think you know a smaller number of shares on issue would actually be seen positively.

* It makes sense at least it makes sense to me, Nick asks and this is something that actually happens quite a lot with the translation between Australia and the UK Nicholas could you please provide an actual approximate date for listing stating the September quarter does not comply with the UK calendar I we quite often get confused when yourself or Newcrest state something like September quarter could you just elaborate what that implies?
- so I came to use September quarter as opposed to Q3 or q1 because everyone knows what September means so it's July August September quarter the I and again I my understanding is so Nick is saying the September quarter is your summer holidays in in London whilst our summer holidays in Australia are rolled into Christmas so our big break is December January whilst my understanding is London is kind of centred around August
- look we believe the listing probably comes through in September quarter it's not incompatible with a with the London LSE mechanisms but yes obviously more people will be on holidays at that time but to some extent it's a pretty seamless process in any case up in London

* Okay Mike thank you for your question I'm not going to ask you though that was in relation to a two-cent waiver which I think you've covered a moment ago he also asked though in response to the media article is there anything further you can add regarding the RNS in the 16th of May which has resulted in declining the share price from 9p to 7p, I think we'll touch on this later as well
- yeah look it's yeah, we made a public RNS on that press speculation
- it was disappointing to see press speculation it's been a feature of our presentation
since I think about October 2022 that we were contemplating an ASX listing so an
article in Australia spilling the beans so to speak that we're going to list on the ASX wasn't really news it was just repackaged and they went on with further speculation but you know so be it
- we responded to that you know with advice from the Nomad and you know that that was unfortunate but it is what it is and we can't control the media.

* Andy, Martin and Steven have all kind of asked the same question here and it's regarding the article that came out with these inaccuracies that you've just touched on in previous discussions you've indicated you may wish to raise a co-current with the ASX listing but it'd be it for an accretive reason only is this still the case and if so should that statement have not been included in the RNS?
- well we didn't we didn't confirm like look for whatever reason we repeated the language the media statement and you know obviously you know we have legal input into RNS announcements so I think we did what we understood was best practice and we'll continue to do what we think is best practice and that's you know our primary mission is to have good governance and set a good standard
- I think overall you know we felt it was speculation and you know it should be viewed as that
- in terms of our own views I think you know I've talked about a compliance listing I've talked about if the circumstances changed we would perhaps look at a modest raise
- we'll continue to assess that you know we've talked previously about a compliance listing we've talked about contemplating a small equity raise, you know those continue to be options for us but we you know we understand that we want to minimize dilution to the extent possible but also make sure we're successful at delivering Havieron.

* That makes sense and so the takeaway there from my really from listening
to your answer is at the moment Greatland have not yet formalised any decision on what is going to happen in those next steps
- yeah, I think that's a fair representation we continue to look at different options to solve the same puzzle.

* Yeah, Shaun I'm aware of the time and unfortunately our time is coming to a close now but I'm aware that we have more questions to talk about so it'd be great if we could do a part two in the future have you got any last words for your shareholders for this part one
- just to thank people for the support it's a journey we think we're making really positive steps on that journey and we like to think this Rio Tinto exploration transaction is the first of many that we can achieve for the platform and I'd be delighted
- you did send me through a great list of questions so be very happy to kind of convene for a part two so we can try to cover off as many people as we can because I appreciate their interest I appreciate your time Liam and yeah I would like to do them all justice.

* That's brilliant thank you, Shaun Day managing director of Greatland thank you so much for your time
- thanks Liam I appreciate the chat with you and the Aim on Air Platform.

* Sadly, this is the end of the webcast ladies and gents, if you want to reach out to us you can contact us on Twitter on the address that's on the screen right now and before you close this page, I'd be grateful for any thumbs up, until next time my name is Liam and you've been watching aim on air, we're specialising in connecting companies with its shareholders - it is what we do best thank you!

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https://www.mediafire.com/file/r6wepa26 ... 3.pdf/file