Notes from AIM-ON-AIR QUARTERLY REVIEW - 03 May 2024

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Notes from AIM-ON-AIR QUARTERLY REVIEW - 03 May 2024

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Notes from AIM-ON-AIR QUARTERLY REVIEW - 03 May 2024

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* It is the 30th of April 2024 and you're watching AIM On-Air where specializing in connecting companies to the shareholders is what we do best. Hello and welcome back to AIM On-Air, my name is Liam and today I'm pleased to be hosting Shaun day from Greatland for a q1 quarterly catchup welcome back to the show Shaun
- Hi Liam, good to see you again and appreciate you taking the time to catch up and compile a long list of questions

* Likewise I really appreciate you sitting here… for our Icebreaker, today I simply want to know if you had a book or an author that you were particularly fond of?
- yeah look I do the… what I'm reading presently is The Churchill History, the author which is Manchester, he actually passed away after writing the first two books in the series and then the third book which has come out more recently was shadow written, which was a tragedy because he'd written a magnificent history, so I'm only doing the third book now after some delay.

* Okay, okay cool thank you this morning in the quarter update you announced that you've updated predictive hydrological model and the water balance has been completed?
- yeah correct Liam, look I think it was a really positive quarter and I think also we've benefited from Newmont coming and an increased focus an increased technical capability that they've bought to it and just the discipline through which they approach
- so that that's been worked through, what we found is the flow rates in lower contained aquifer (LCA) is lower than anticipated and that's really a function of the porosity of the of the rocks
- just the speed at which the water can travel through those rocks is less than anticipated so a positive finding and then that right… throws right through to the pumping capacity required and the infrastructure to deal with that water
- so all in all this has been helpful and positive process

* Wonderful thank you, whilst we've not heard much about it further construction works have been completed, what have Greatland & Newmont been developing recently?
- yeah look there's been a range of you know constructions kind of moving forward
- a lot of this was around the ventilation system so this that they getting airways down
- I think there was a really good picture of some of that kind of airway pictures which was good and it just shows some of the scale and just the mechanical engineering that goes into these underground mines
- so that was a lot of work that was set up
- a number of pads for when we bring down the updated bores to also join up additional ventilation systems, so it's really getting in that ancillary infrastructure to support the mine and take us down deeper into the basement rock

* Awesome thank you, Greatland holds the last right refusal (LROR) and has the debt facilities available, this morning you've openly stated that should there be an opportunity to consolidate the asset you will, would you care to expand on this in your own words on what you mean by it and why you would publish this in an RNS?
- well look we're excited and I think our shareholders should be as well about the opportunities ahead of us and Liam you know we spoke briefly just as you were getting kind of ready to set up the call about you know I joined in 2021
- I think I was reasonably open that you know I saw this platform having an opportunity to bring back ownership of Havieron 100% into the vehicle and in that regard you know I think we've built the organizational capacity
- we've brought in you know a very sophisticated board, the debt Banks which is undrawn that you referred to which was 220 million on a 30% basis that potentially extrapolates to a 700 plus number
- the strategic shareholder (note: Wyloo Metals) and now we have a joint venture partner which has publicly stated that within the next 12 months… I think they said this back in late February that they'd like to completed divestment
- so this an exceptional confluence of events and opportunities and look we think we're really well positioned to take advantage of that opportunity and you know there's the opportunity within that is important to us
- and I think people should be confident that we would think about that you know in a very financially disciplined way and I think I've got a history at Straits at Sakari and then at Northern Star of being part of teams that have been very financially disciplined and have managed to undertake transaction that have created value
- they were accretive to shareholders and I think people should have confidence about that and I don't know the future but I think people should feel that the team is working hard to position ourselves for that success

* This is audio not video, people would be seeing me smiling from ear to ear right now, thank you thank you I really appreciate the candid response there. On the 25th of April Greatland announced it's gained access to a large area, the Ernest Giles JV area under the Mount Smith license, are you hoping to get a drill up there in 2024 to see what's under the cover?
- yes well let me break that down into two parts
- I think Meadows we want to get a rig on to that in in ‘24
- I think that new area there's probably some additional geo… or yeah geotechnical work that we want to do to identify the best positioning of the of the drill pads
- but I think if people cast their mind back to that announcement you've got this Arc structure and that and that is the geological feature on that Archean greenstone and we've now effectively consolidated that entire Arc structure, the really prospective parts of Ernest Giles
- so look we don't believe we could have a better platform there, Archean greenstones are tightly held in Western Australia, the majority of WA Golds are within these kind of structures… associated with these kind of structures
- so we're really positive about the opportunity that presents for us
- so we'll definitely get a rig on there this year, there's been a bit of rain up there so it's been hard to get out on that side but as that clears and the roads open again I think you'll see quite a meaningful amount of activity in the second half of the year and that's exciting including the drilling

* Wonderful I know of a few shareholders that could be very excited to be start scouring the satellite data as it appears every 5 days in the coming months, thank you. Newmont released their annual reserves and resource statement and I note that the company said Newmont’s updated Havieron minimal resource estimate is particularly pleasing in how closely it correlates to Greatland’s estimate in higher confidence indicated minimal resource category and the significant increase relative to the previous indicated mineral resource. Could you give me some context on that please and what you mean by it?
- yeah well look we're really pleased what we have from memory 5 million ounces of indicated resource
- now it's the indicated resource that can be translated into reserves, so you have a high confidence about those ounces being in the ground because you've got a higher level of density of drilling or an increased density of drilling
- so we feel really positive about that and then to have Newmont come in under a slightly different… under their SEC rules for resources and as such do their own independent process and come up with a number that validated our own we thought was really positive
- so again it's around this validation it's around this consistency it's nice to have that alignment

* Wonderful thank you very much, this has been the quietest quarter in some time, we've not so much happening, I thought it'd be prudent to change direction and look forwards for a change to ask the questions that your shareholders are wondering.

Sorry to drop this on you but with the dwindling share price questions are being asked and I feel it's my duty to ask them, the show is supported by members of the community who buy me the odd coffee to help pay for the show's running costs and I thank them for that support.

In return I tried to include the odd question, today's is from TallChap JG who says what do you mean by the phrase option value for shareholders and with a follow-up of how do you see that value?

- so when I talk about option value and look I sometime refer to that in the context of geology or perhaps in the context of being able to take our ownership from 30 to 100%
- but what I really mean around that option value and let's use the geology as or exploration geology as the example for this discussion
- that clearly and Greatland shareholders understand this because exploration success can create just a huge amount of value for shareholders
- now not every drill will necessarily deliver a Havieron type Intercept, in fact they're quite rare but what it shows you is the value it can be create… so by having these drill opportunities in the… within the portfolio it means there is this future opportunity to create that shareholder value
- and that applies to exploration, it applies to the opportunity to execute an accretive transaction where there are events or catalysts that can create this value for us and I think I'd like to think we've created a platform which is catalyst rich in terms of providing those opportunities for outperformance for shareholders

* Okay thank you I really appreciate that, you mentioned in a recent interview that more pond liner has been ordered, do we need to wait for new ponds to be built or can you start to drain the LCA for now?
- it's a little bit in parallel but yes look, we also want to get those additional ponds built and part of that additional ponds we are putting in place are not… are more needed just for surge capacity than necessarily steady state
- you know for instance a confluence of pumping and a rain event so look you obviously don't put in exactly, install exactly the infrastructure you need so you can do these things in parallel and you can start before it's all in place
- but it's not linear in sequence but having said that you know we do want to get those under sail and one of the great benefits of having a Newmont as a joint venture partner is they were very proactive in even in parallel as the studies being done saying well let's line up what we need
- the long lead time items in this case the liner so that is on site and ready to go as soon as we confirm through technical analysis the size of those ponds that we want to have in place
- yeah I just add you don't normally see that in the midcap or small minor space yeah it's really nice to see the just the proactiveness that a major can bring to something like this

* Yeah no that that must make a huge difference to how a project plays out, have you got any timelines on your mind as to as to when that would restart with the emptying of it so you can commence the drilling?
- oh look I think that will play out through the quarter I think if were to definitive on that we would have kind of weaved it into the March quarter but and again it's it yeah we might have our own view on this internally at Greatland but that also needs to be agreed at the upcoming JV meeting

* You said on the proactive interview that you can take shortcuts from what was originally planned, does this mean a new revision of the plan needs to be submitted for the… to the DMP for approval, when would you expect the plans to be approved?
- when I referred to a shortcut I was probably trying to say that briefly in the confines of what is a shorter Proactive interview session
- so really what it is the contact between the Permian layer and the basement rock is not absolutely you know flat or horizontal
- it actually has a slope in one direction and so there are places where the basement rock and the ore body are actually closer to surface than other areas and basically with the increased density of drilling that we've done around the around the ore body and as part of that were the Bore holes we've been able to refine the path of the decline to both take what we think is the safest route through the LCA
- but also to have a path that leads us in a shorter vertical distance to actually getting to the basement rock

* Over the last few years we've had many jobs appear in public spaces for working at both Havieron and Telfer with contracts ending in June ‘24 despite not having any correlation with the new owner or being part of the sale process we find ourselves only a month away and rumours of all Sites being in care and maintenance, will the projects be affected by this if the contracts are not renewed and staff leave?
- yeah look there there's a little bit to unpack there and actually correct Liam
- so firstly I think look project development staff are almost always on contract because they're not normally the same team that move into steady state
- it is a specific set of skills that and there is people who you know spend their careers in project development so it's not unusual to have those people on contracts so that is in the ordinary course
- n terms of you know the project itself you know we just talked about the installation of infrastructure going on, the refocus on the study and the positive outcome you know to our mind you know well I think I can be more definitive than that
- you there's no intent to put the asset into care and maintenance so it's probably worth just you know speaking to that directly and nipping that in the bud but you know we have a great relationship with Newmont and also they've talked about you know wanting to divest you know Havieron & Telfer you know let's say within 12 months
- so there's actually probably greater alignment right now in that they want to present this asset in the best possible light to the to the eventual buyer
- so I think they are will be thinking in their own interest about how do they continue to advance and derisk this project in a sensible way to optimize their own value outcome

* Okay thank you and just to clarify and reiterate neither Havieron or Telfer are currently in care or maintenance?
- correct and look I'm not the owner of Telfer so I've got to be a little bit cautious about what I say here because I don't know all the facts

- but yeah I think Newmont has publicly stated that they you know that it's in pause whilst they address, upgrade the tailings dam but they continue to mine, the site is very active so I think people should feel really confident about that
- and look I don't know the mind of Newmont but again if they're looking to divest that asset they are going to be thinking about optimizing that value and that means you know a divestment of an asset that is a going concern and continuing operation
- it's and I should add it's actually quite expensive to demobilize a site so it's not something you just do and then say I will remobilize it a bit better and you want to keep those people in place which I think is part of the underlying sense of that question

* Okay that that's fair thank you very much for clarifying that, I really appreciate it should shareholders expect time frames on the feasibility study to slip again with Newmont signalling that Q2 2025 for all divestments… we could see the whole project shift sideways for a few quarters, what guidance can you give with your own expectations?
- oh look I think you know our expectations remain consistent that with what I think we even said in this quarterly which is an expectation that the feasibility study can and will be completed by the end of calendar year 2024
- so that that progresses and again I think comes under that alignment concept that you know Newmont have additional horsepower capacity that they've brought to the table and you know solving issues such as the water balance only continue to advance that progress

* Okay thank you, are you worried that you might run out of cash before the ore starts to make it to the surface for processing and on that are you able to specify how much cash we have left and can we sustain the spend with the current wage bill that we've got currently?
- look I don't want to add to kind of what's already in the marketplace on that which would been our cash balance that 3 months ago at 31 December
- but you we also have a $60 million sorry $50 million dollar Wyloo facility that's undrawn and of course that brought a $220 million facility in place
- and I think again I've spoken about that and said that 220 million would really like to bring that online as part of the feasibility study
- so that's yeah I see that as 2025 onwards funding so we feel we're well placed so again I think you know we've put in place the structures to make us confident about managing liquidity

* Okay so the exploration program for 2024, what funds are available for it and are you comfortable that you can operate this outside of the Havieron infrastructures… program?
- yeah look the Greatland exploration team works independently from that of Havieron or indeed Telfer
- we sometimes utilize some of that infrastructure be it roads or refuelling but fundamentally it's they're all independent as are all the other explorers up in the Paterson
- so there's really no change from our end, all those pieces of infrastructure continue to be there and just make everything a little bit easier and what's nice about that is having you know medical facilities having an all-weather bitumen air strip at Telfer provide additional comfort around risk management safety plans if there is an injury in that area because otherwise it's very remote
- some of the infrastructure already installed on the Paterson I think benefits everyone

* Okay thank you, the share price sadly continues to decline as the uncertainty of our future goes on, none of the executive team have been seen to be publicly talking about the project. We've heard repeatedly the words such as transformational, accretive and option value but nothing seems to be happening towards making any of this happen.

What are the board's intentions, you've you have achieved so much during your tenure as managing director securing our future and owning 30% of Havieron, but what do you say to those who critique that without Havieron coming in line you failed to meet the most important of your objectives, that's a tough question sorry.
- no I appreciate Liam that you asked these questions and look you the fact that we have a really engaged shareholder base is something we celebrate and I try to make myself available you with you with other interviews but also at the Town Hall meetings and you
- if I only wanted to get questions I want to get asked I'll I can do pre-recordings of that but so look we think we've been yeah I like to I'm really proud of what we've achieved at Greatland
- I think the organizational capacity we've built with the team is tremendous being successful in that 5% process
- to maintain the 30% holding was incredibly important, I think I think that was otherwise an existential threat
- bringing in the Strategic holder shareholder, bringing in a world class board putting in that debt letter of support the 220 million I mentioned before and the names we bought in with ANZ, ING and HSBC are all incredibly important achievements
- now you know what I've come into is a situation where we have a joint venture partner and we’re a minority holder, that's been really helpful for us I think when you look at the normal cycle time from Discovery to development the Newcrest and now Newmont involvement has accelerated that amazingly
- I think this was a very late 2018 really 2019 Discovery and in February 2021 we are putting in a Box Cut and decline, now that is unheard of to have a 2-year cycle time from Discovery to commencement and that would not have been achieved without having a major in place
- so we should celebrate that and we should celebrate that that structure was put in place
- but now we have an opportunity to potentially the major to exit and that that is an opportunity that that is exciting for us as a management team and should be for shareholders
- the so we think that ultimately you know delivers Havieron and whether that's delivered by Newmont or they exit and we're given the opportunity to you know to take the reins and deliver the project I think that would be tremendous
- and I think if were in the driving seat I'd feel really confident that we would be able to complete the task in front of us but I think equally I'm really confident in the organizational capacity of Newmont
- people should have confidence that the underlying project is a really high quality gold copper project, you look at gold and copper prices it's a pretty good time to be a producer of those products, especially in Australian dollars because the Australian dollar is historically weak at this level of gold and copper price
- so it is a tremendous opportunity, I think the financials only look better so yeah I don't know the mind of Newmont I don't know exactly how they think about the exit opportunity but anyone coming into this including Greatland I think we'll have a burning ambition to complete the development

* Okay thank you very much I really appreciate that, from one tough question to the next we cover this one fairly regularly and I hate asking about it as your answer is always it's fairly similar. But why are the board not out there talking about the company or the project in the public space?
- thanks Liam, well look it's yeah I'm one of the directors of the company and I'm certainly seek to be out there as much as possible presenting the narrative into the market
- you know both with opportunities like this, Town Halls and other interviews and RNS’s releases and communication so and I don't think you'd expect to see non-executive directors taking on that role
- and to some extent I'm really appreciative that the board has the confidence in the management team to fulfil that that role and it's something we seek to put a lot of effort into
- and I and I think if you were in the market in this… often in the Perth Market in this case for a number of directors I think you'd see their advocacy for the company in terms of engaging with advisors, bankers, funds potential shareholders and the connectivity that they bring
- and also how people differently perceive Greatland as a counterparty given the maturity and the quality of some of the people we have in the management and very much so on the board
- so I think I see it as hugely positive and I think a strength of the organization

* Okay that that makes sense, thank you for clarifying it's also been noted that the none of the board have done what's expected of them in AIM and put their hands in their pockets to show support and solidarity by buying on the open market.

I appreciate they do have their incentives but they're not seen to be suffering losses like some of the shareholders so what would you say to those who claim that the board are not supporting the company?

- well look again I think you a number of directors in including myself have bought shares so I think that's important to understand
- again I'll just reference back to the broader support that the board has but also the alignment
- you know principally they're aligned with those options which are you know significantly out of the money right now so you have a board here and indeed a management team along with them hugely incentivized to deliver exceptional shareholder share price growth to… for the benefit of everyone
- now I think that's wonderful alignment and I think people should celebrate it
- I personally you know like that structure, I like that my board actually wants to see shareholder appreciation and are willing to pursue strategies that they think will be value accretive and not just risk averse
- so I think it's a really mature structure I think it's a good structure and I think we should celebrate the team that that's helped us attract

* Okay thank you Shaun that really… I think that will really put that one to bed for some time now. These ones put me outside of my comfort zone as they're so forward looking and we all know I don't like looking forward so much but it'd be wrong of me not to ask at this time. Tom Palmer has said in the divestments will happen in the phase one, any idea when that will conclude?
- oh look I don't know the mind of Newmont but look we certainly you know you know feel we're well placed to engage with Newmont when they feel they're ready to go
- these things are typically take a little bit of time and remember this actually a really new asset for Newmont to own, they only bought it in in late November
- some of the other assets they've owned for years so these things do take a little bit of time to play out but again I think people should be excited about the opportunity, certainly the management team is
- you know some patience is needed with these things but equally you know we think we're extremely well positioned and working hard to position ourselves for that success and I'm really excited about the opportunities that presents to us

* Okay thank you, so what about the scalable finance, if we wanted to, if we were to buy the farm do you have enough scalable Finance to take it.. both Havieron and Telfer?
- look I I think you know these questions are hard to define until you know the vendor kind of sets a price
- but having said that I think this all about us having an exceptional confluence of events
- the capacity the board the Strategic investors, but also that support letter from tier one Banks ANZ HSBC ING on you know 220 million
- I'll do the maths for people that's on 30% that extrapolates to 733 million, now I'm not saying that that's specifically the amount that that could be borrowed but it's certainly a really meaningful war chest and I understand through my career the benefit that debt leverage can deliver to amplify Equity returns and make financially disciplined transactions incredibly accretive and value accretive for shareholders

* Okay thank you one of the questions it does pop up from time to time is if you do it as a JV or if it's something you would want to do alone is that anything you've given thought to?
- oh I think people should be confident I give thought to a lot of things Liam but look I think yeah I'm an options kind of guy
- I enjoy having the optionality in place and we would consider sensible approaches but equally we feel we've built an organization that is capable to be in the driving seat and successfully deliver Havieron

* Okay slight change of thought, what happens to the percentage of JURI that's currently under ownership of Newmont?
- well again look I don't know the mind of Newmont but if we take it face value what I understand they've said publicly which is that Telfer and Havieron are non-core and that they intend to exit those assets you'd think it's logical there'd be an industrial logic to Newmont also exiting its surrounding exploration tenements
- I doubt they would keep an exploration foothold in an geological area where they've exited the infrastructure

* That's fair thank you, Newmont have initially said that Havieron and Telfer were available for divestment individually. In later terms they've said that they've combined them together is this because Telfer is such a large liability on its own and does that play into hand our hands from a valuation standpoint?
- so look I again I don't know the mind of Newmont whether they would consider selling them as a package or as a standalone
- ultimately when they start a process I think that will be you know disclosed
- that said I think if you have a look at the Newmont’s latest disclosures they have a carrying value for Telfer that is it also discloses the liabilities associated with Rehabilitation and other and other Provisions which is really meaningful
- so look there's certainly a balancing act when you think about Telfer, both the potential for cash flow during its remaining mine life which is relatively short I understand from public statements offset by reasonably meaningful liabilities
- you know by contrast Havieron is new, its best days are ahead of it and it hasn't got that that historic site works and Rehabilitation obligations
- so yeah to some extent I celebrate that our asset Havieron has its best days in front of us and without commenting on Telfer it's certainly a more complex beast buying assets that have had you know the wonderful life Telfer has had over 30 plus years

* Okay thank you, should we get to Telfer would you sell royalties as part of a package as Northern Star have previously to raise funds I suppose I should say that?
- yeah I think during my time at Northern Star if I can comment just in terms of Northern Star, during my time at Northern Star and I think subsequently to my mind you know royalties were not sold, I think when you've got an asset to development and a growth asset there's a lot of upside to the future and the longevity of that production which royalties can participate in just because of their in perpetuity kind of status
- so again I think all options should be considered but we would view any decision Greatland on any opportunity about creating shareholder value and about being accretive and if we thought that was amplified with royalties we'd consider them but equally often I think you know simple structures are often which are the most transparent create the greatest value over time

* Okay thank you I'm expecting a fat no comment from you on this one but are you able to comment that Regis Resources have been linked to both Havieron and Telfer in recent times and has Jim Beyer swung by the Greatland office by any chance?
- well look no comment but I will say you know Jim's a good person I know as I do most people in in the WA gold sector and look overall I think we should only be flattered if there's a whole lot of speculation about high quality companies wanting to own Havieron because it is a world class asset

* Wonderful sadly Shaun he says looking for his teleprompter that's the end of this webcast ladies and gents, if you want to reach out to us you can contact us on Twitter with the address on the screen and before you close this page.

I’d be grateful of any thumb’s ups, this interview is supported by your donations so if you enjoyed or learn something today please consider buying me a coffee on the link on the screen now.

Shaun Day managing director of Greatland gold PLC thank you so much for coming to the show to discuss the previous quarter and answer some of these tough questions do you have any final words for shareholders today?

- look just to say thank you to yourself Liam and the AIM On-Air Platform and in terms of shareholders we really appreciate the engagement
- yeah I think my vision for the platform and I think the board's vision for the platform has not changed and yeah I think we are really well positioned for success so appreciate that support and the excitement we have for the future hopefully you know is conveyed in this discussion

* Wonderful thank you until next time my name is Liam and you've been watching aim on air we specialize in connecting companies with shareholders is what we do best - thank you.
“Study the past if you would define the future.” ― Confucius