Notes from LSE Webinar and Town Hall - 14 July 2022

[DipSard]

Notes from LSE Webinar and Town Hall - 14 July 2022

RNS: https://polaris.brighterir.com/public/G ... ry/xeg9vjw

Interview: https://youtu.be/D5LfhRI1WPI

Slides: https://Greatlandgold.com/wp-content/up ... -22-vF.pdf

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

* Hello and welcome to the London GGP town hall meeting we're joined live with the great gold md Shaun day with an audience of many hundreds of Greatland Gold followers for those of you who don't know me I’m Donald Leggett head of investor relations at London South East and I’m your host today by way of background a very brief background Havieron was discovered by Greatland Gold in 2018 and is one of the most exciting gold copper mines in development worldwide as you know the project is currently in development under a joint venture with Newcrest Mining, Australia's largest gold producer, the plan for today is that Shaun will take a talk to slides for15 to 20 minutes and give you a strategy update and I think he might just have slipped out an RNS announcement for you to think about with the rest of the hour allocated to your questions and there we go that's enough for me, you don't want to hear from me, time to hear from the man himself welcome to London Shaun Day
- hi Donald and thanks very much to London South East for hosting today it's our pleasure my shareholders it's our pleasure, so look as you said I’ll try to get through this presentation in 15 minutes so it's intentionally brief but that will allow more time for questions look just a quick orientation of myself
- so I joined Greatland some 18 months ago with a deep operational background most recently with Northern Star Resources, Australia's second largest gold miner and before that Sakari and Straits Resources all of those became multi- asset multi-billion dollar companies and yet started off as single assets just as Greatland is today
- just the investment highlights overall, look we have an absolutely world-class asset in Havieron, its copper and gold, I think the best gold mines have copper and this is expanding rapidly
- our last update with the resource and reserves was a 53% increase in resources, 50% in reserves now 6.5 million ounces of gold equivalent and it's still in this growth trajectory stage, it's a big beast of an ore body and of course our development office gets to leverage existing infrastructure, we're just 45 kilometres down the road from the Telfer gold mine, grand old lady of Australian assets , some 35 years of operations there and being so close we will be able to leverage that infrastructure for a low cost low capex low risk startup to Havieron and more broadly than that Paterson you know we love our position our land holding across that the Paterson there there's no better place to look for gold and copper than where it's already been found and this is elephant country
- big deposits have been found you know Telfer, Havieron, Rio Tinto is up in the north with their Winu deposit, yeah if we can tag another ore body that would be an amazing opportunity for our shareholders and then overall you know we want to continue to invest in the drill bit, not just in the Paterson but across the rest of our portfolio and all of this what we've tried to do you know over the last 18 months is really build up the operational capacity of the team introducing resource geology, augmenting our geology adding mining engineering and processing together with legal and finance expertise so that we are a good operator and good advocates for Havieron
- and I always like to orientate people around our strategy and our strategy has three key pillars, we want to continue to drive and expand Havieron and deliver that, we want to continue to invest in the drill bit and I’ve talked about before building the platform to be a multi-asset multi-billion dollar platform and we couldn't have a better foundation asset than Havieron to achieve that
- look our strategy overall I guess in this kind of brief presentation mode, I really want to talk about it just being you know multifaceted around organisational and asset development, but also making ourselves a more investable proposition across the fund management spectrum hence we brought out our inaugural sustainability report earlier this year which was very well received and something that we enjoyed doing both in terms of I think it's important to have but also reflects the values within the organization Havieron itself
- it's this tremendous confluence of being a world-class deposit situated in a world-class jurisdiction of Western Australia and then also situated next to that existing infrastructure with our partner in Newcrest and all of that leads to this quite unique development proposition that we have to bring this into rapid production still targeting for 2024, - first half of 2024 for first gold production
- I mentioned before around the resource and reserves and the speed to which this is continuing to drive and really this resource is cantered around the South East Crescent, really strong grade, we have the six and a half million ounces that I’ve spoken to, 2.9 million ounces of that is running plus 3.7 grams gold equivalent
- it's a beautiful ore body particularly when that will be the first ore we bring out to create and generate free cash flow for us to reinvest back in the mine and develop the full potential of Havieron
- but this slide you know I really enjoy it really shows you on the right of screen there how looked at the previous resource and what it looks like today and you can see with that extra 10 months of drilling just how much of that ore body has come into the mine plan, has effectively been shaded blue on this
- we think there's still a lot of ounces to add even on those existing levels but also at depth we continue to drive this out and some of you remember you know 10 months ago me saying with that original photo the ore body doesn't pinch in it doesn't cut in like that, that's just a function of drilling density and you can see that and I think we'll continue to see that as we expand through the ore body but the best thing on this page is the 86 conversion rate
- I haven't seen that before in my career that just is testament to once you identify gold it, quickly you can wrap mining shapes around it and it all comes into your mine plan which talks to the grade and quality of this asset
- this is a cracking slide which is the ounces per vertical meter, the red line on the right of screen is what it was 10 months ago the pink line to the right just shows it continues to you know get bigger
- the pink line I think the two things you notice is you know it's continued to shift to the right but also extended that depth, again it's a function of that drill density which is the left-hand axis, there's a huge correlation between where we've drilled and how much gold we've identified, so effectively we feel this continues at depth and over time that ounces per vertical meter becomes more of a straight line on the right side
- as we fill in there's no reason why we don't get a consistency of ounces per vertical meter, so there's a lot more to add both at depth but also on those lateral levels
- this is an important slide, I know it's a little bit busy looking at it in the ore body plan but effectively you can see down the bottom of the screen is that South East Crescent and its extension as it continues to wrap around the ore body that high grade zonation but really three quarters of this ore body sits outside that high grade South East Crescent
- all of that potentially comes into it and when we talk about those bulk mines there's potentially a couple of bulk mines here, you know that new Eastern Breccia that looks you know very strong and then that Northern Breccia here as well but once you put in that infrastructure the hurdle to bring those into block caves or some other form of bulk mining gets lower and lower which gives us greater and greater confidence about that opportunity
- but I think this just tells you about the size of the prize and remember at that southern end of that eastern breccia we've also hit high grade, two from two drill results so far but you know grade that we've only really seen in the South East crescent, so that's exciting
- look the cost structure yeah let's just talk to this briefly again but lowest course hope, but I just want to talk to inflation for a moment you know we have the advantage of a team already in place I think Telfer is some 1200 strong as well in addition to the 225 at Havieron, so there's a lot of people already in situ who enjoy working at that site and so if you're not chasing the incremental employee I think it makes you give you a much more stable cost base, our cost structure isn't developed from a spreadsheet, it's actually based on 30 years of operating experience there at Telfer, Newcrest is a credible you know conservative and well-respected you know global major so I think we should have a lot of confidence in its forecast and these again have been built up over multiple, the knowledge of multiple operations and 30 years’ experience there in the Paterson so it should give us a lot of confidence about our ability to deliver this cost structure
- the capex hurdle is there but again it's measured because we get to leverage that existing infrastructure at Telfer and you know we continue to look at debt options to position ourselves well to satisfy that debt
- in terms of the expansion you know we've got we continue to do a lot of growth drilling, we have that feasibility study still expected out in the fourth quarter of this year, so the December quarter of 2022 and remember the PFS were set at 2 million tons per annum with the preferred case for that feasibility study is 3 million tons per annum so 50% growth
- the decline continues to move, again I’ve had some questions on this over the time going through that Permian layer, it's not homogeneous, as you get deeper the ground becomes more competent and that's actually better for underground mining, you can take bigger cuts and speed up your advancement rate it's more efficient so you would expect and I think you've observed today, an acceleration as we've gone through that decline development,
- we've talked about the potential evolution in mining, I think the South East Crescent on that and the sub-level open stoping continues right through the life of mine
- it's a beautiful high grade ore you want to do paste fill and take as much of that out as you can and then of course we've still got the upside of further discovery around that Havieron and around those extensions in the brecciation
- sustainability I’ve spoken to , think we've spoken about Newcrest but let's just pause on the portfolio before I hand across to Donald for questions
- really what I want to talk here is look Havieron is an amazing centrepiece asset but we're excited about our exploration around the Paterson again, it's a wonderful address but also the rest of the portfolio as well you know we continue to look at those Tasmanian assets perhaps looking to work something in with a partner there because they're probably not of the size and scale
- good assets but not of the size of scale that can fit in the portfolio with a Havieron but something like Ernst Giles excited about, still just trying to solve the first nations
- we've always talked about drilling that potentially late this year but more likely early next year but an under drilled greenstone Archaean you know geology, a lot of WA gold is found in that kind of geological setting, think the super pit, it's this is east of the super pit or east of Calgary but we're really excited about getting drill rigs up there, it's undercover it's exactly where we describe our competitive advantage in exploration so with that I think I’ve held for about our 15 minutes and I’ll let Donald open it up to questions

* Okay he's done very well Shaun the folks on this webinar may not have seen this announcement but you've just popped out an RNS announcement and I think the best thing for me to do is to hand it back to you and say hey Shaun could you explain to us what the RNS is all about?
- yeah look thanks Donald, it is news just come out kind of mid trading but this week we executed an agreement with the counterparty and felt we should announce which was timely for our catch up today but look the this is this is again solving a transition issue
- so when we originally acquired Havieron which has obviously been a tremendously valuable transaction to our shareholders there was a deferred element of consideration that is triggered either by a development, a decision to mine which is around that feasibility study at the end of the year or a reduction in our stake to 25% which is obviously potentially the case depending on how this 5 percent option plays out
- accordingly we felt it would be good to deal with this and effectively what we've done is been able to bring that forward and why I think that's to our advantage, we did two things as part of bringing it forward, one, those shares were not previously subject to any trading mechanisms
- we now have a two-year trading lock and orderly market mechanism with them so that means those shares you know don't create or overhang the last stop
- so I think dealing with them in a really professional and you know structured way I think protects our shareholder value and then secondly we negotiated a four and a half percent discount which saved us about six and a half million GGP shares so I think that's a a good outcome and removes another element of this transition which I’m trying to get us past so that we stop talking about the you know these open elements and we're really just focused on the growth potential ahead

* And your feeling is that this was the best deal that it was possible to strike?
- yeah look I think given the you know imminent outcomes with the other things that the timing was really sensible and then with you know the combination of the… bit I most love about this is the whole flock, I think you know I’ve had shareholders ask me about this line and I think this gives them and us all the protection and obviously being able to do that and achieve a discount as well I think it was a win-win but I’m really satisfied with it and I think it's in our best interest so a good outcome you know to my mind I’m wrapped to get this out

* Great, now it is fair to say that some of the shareholders may actually forgotten about this but it has been around a long time and it wasn't something that was signed up for by you?
- it's a it's a 2016 agreement, to some extent I’d love to claim credit for the Havieron acquisition but yeah obviously Callum led that who we all remember you know and you know remains a great shareholder and supporter and friend but the yeah look cracking deal but you know just cleaning up from a corporate point of view I think you know squares the circle

* It's a loose ends type thing?
- exactly and that's when I talk about transition issues that's exactly what I how I think about it

* Great thank you, that was very helpful okay let's talk about other loose end issues, the five percent Newcrest share stake evaluation, there's lots of people asked about the same question (Dip, Chris, Edward) and no doubt lots of others so I think the first thing the first question is give us a summary of where we're at what, what position are we at currently?
- yeah look I’ve got to be a little bit measured because it's all subject to confidentiality agreements
- but I think what I should say is yeah I don't choose the timing of the resolution of this it's obviously got to be done pursuant to the process in the JVA and in cooperation with the two parties , that's you know my expectation is that that gets solved shortly
- yeah it'd be lovely to have been kind of announcing that even today but you know I think continue to watch this space and I think people should have confidence that what we want to do is do our utmost to optimise that outcome within the constraints of the mechanism to protect the interest of shareholders

* Is it possible just to give us an overview of the process and what's taking place at the moment just in the most broad terms, is that allowable and would you, might be able to do that?
- yeah that look we that we are sticklers for the confidentiality process but I think what I can do is remind people that you know we enter the process, if the two parties are not within 20% of each other it goes to an arbitrator or an adjudicator to determine the outcome
- so either that can be the case or the parties can reach an agreement but either way an outcome will be known

* Next question from Ken, keen to know about developing mines around any further strikes, he's aware that Newcrest have an optional right of first refusal at JURI JV but what if we've got a great assay at Scallywag or Goliath essentially would there be enough money to cover that and yeah and would you partner with Newcrest if that were the case?
- look thanks Ken, so at JURI that's already in you know joint venture with Newcrest so if we had a discovery look my expectation is that we kind of fold in quite rapidly into effectively the Havieron development and perhaps become a you know a satellite ore body to that
- in terms of scallywag that's a slightly different proposition because we hold that a hundred percent, but we value the relationship with Newcrest, I think many of the reasons that Greatland entered the joint venture with Newcrest you know at the time it did are valid today
- having said that we're a larger you know group, we have better access to capital we have a more diverse set of skills and experience within the team so I think if we were to have a discovery there I think it just gives us a world of options
- I think of course we'd be talking to Newcrest about bringing that into the joint venture and working out what we get in return for bringing that into the joint venture but equally it does open up to be 100& development for ourselves which then may have some you know such as a toll trading agreement with Newcrest because there is an opportunity to collaborate on different levels but I think having the position of strength with a stronger balance sheet, a stronger market cap I think what I probably most want to convey is I think we would try to take such an asset further up the value curve before we dealt with it. if not taking it all the way for ourselves

* Okay, another trick when I’m getting all the curve balls out of the way at the top of the session Kevin and Eddie both have the same this are of the same opinion and they're not very keen on Berenberg the broker the house broker and think they're not doing a terribly good job and they in essence they're saying why use them they've not been terribly positive for a Greatland Gold, what's your response?
- so we have multiple brokers available to us, Sprott just came on with research I think Monday that was announced or maybe Tuesday into the UK time but either way I’m wrapped to have them there
- I think they show again that the increasing maturity of the company and broader interests brought (HOST – Sprott are Canadian brokers is that right?), yeah they are Canadian but this is their London team they to some extent are an international group, they have also strength on the European continent and they are well known in Australia as well because they are a very well-known you know commodity house so look we're really wrapped to have them on but we're equally you know enjoy the relationship with the existing broking group
- Berenberg is one of them to answer the question more specifically I think they're very supportive of us, I know they're also a market maker, I think there's about seven market makers on us so look I think their market making role is somewhat different to their research and support elements to it but it's good to have a market maker yeah, it's it's good that we are one of the most liquid stocks you know on the exchange, I think we should you know enjoy the benefits of that and certainly I speak to them you know regularly and they continue to assure me that they you know they seek to maintain an orderly market as with our other market makers okay

* So Andrew is talking about shorting, can you please assure shareholders that you won't be entering into a funding arrangement but the same entities brackets or their business party partners to enable the long-term shorters of the stock to buy back and exit profitably please, he's saying don't help the shorters?
- yep no no one likes to help shorters so yeah I have sympathy for that, I think there is only one short it's been there for a while what I will say on that one is they've already sold the stock, the damage is done, at some point that stock has to be bought back so now we get the benefit of it
- now they choose the timing and place of that benefit for us but that will come, so to some extent that the cup is now half full, yeah our job is to get that share price up and not encourage anyone else to think of doing that again

* Okay now, Steve, Keith, Renato so three people essentially asking the same question which would be why is the GGP share price currently at 10p and following rather than I think it was at a high of 37p back in the back in the glory days so why also all these good things are happening within the company and all the excellent things you talk about why is the share price in 10p?
- well look I think firstly our best days are ahead of us, you know our asset you know is getting closer to production it continues to grow and be derisked
- you know we add NVP with every month that passes as we get closer to free cash flow and with every exploration or growth drill hole that that adds ounces to the orbit so our best days are ahead of us yep so yeah I’m as disappointed as anyone with the share price but I think we've got to look at it in terms of you know the market overall you know
- our joint venture partner you know if you map us against them you know that the trend is extremely similar, Northern Star which is you know Australia's second you know largest gold miner has also you know had it had a similar trend and it's not restricted to gold's either, look markets are off, we are not an island
- having said that you know we should be outperforming the market because of that growth curve that we're on. we should actually be outperforming the market and we should be outperforming golds because we are 20% copper, the best gold mines have got copper
- so you know that's the disappointing thing for me, I think the uncertainty around the five percent, I think any uncertainty is unhelpful
- you know we mentioned the share issue today to five figures before that removes an uncertainty, removing uncertainty is my priority and I really want to switch from that defence of tidying up these loose ends to coin your phrase before Donald and then move into offense where we're talking about and celebrating you know just the quality of the ore body and that journey to production
- not saying hey we're still fixing up some loose end so I think that's the best thing we can do and you know I think today is one milestone of progress there's you know some more coming and then we switched to offense

* Excellent sounds good Dip asks, does the technical committee still exist and is Callum Baxter still a part of this team and if not how are the exploration geological and processing teams structured currently?
- so look the technical committee doesn't exist as a community anymore or although just about all of them we still use in one shape or form or the other with the exception of Callum, well Callum's taking a bit of a step back, I caught up with him he came to an event with me a couple of months ago, so he's you know he's still a friend and a supporter of our stock collectively and indeed was through London probably a month ago and caught up with a couple of our directors
- but look he's yeah it's he's always welcome in the office he's a friendly face great to have him the rest of those chaps are still actively involved to the extent that we use them to augment our team
- I think the team is actually very differently structured to when he was there anyway, we didn't have mining engineering and processing those skills which we've added so now effectively we have everyone who reports into Damien the head of geology which includes resource geology and then we have Otto that leads our mining & engineering team so ultimately they are both direct reports to me or although culturally it's a very flat structure
- you know we're all colleagues together, yeah it's a small office a tight-knit office of high-performing individuals who have been working extremely hard really since we got that PFS around this five percent and around these other structures to continue to delineate and understand value for our shareholders

* Why did you feel the need to have you know an enlarged structure why did you feel as though you need that expertise going forwards?
- well so a great example of that actually where I was going anyway was when we came out with our own resource and reserve update in March, that was critical to my mind to the processes that are being run that is your fundamental understanding of your body is an updated resource and then having the technical ability to wrap a mine plan around that which generates your reserve
- it again was essential for us to advocate the value presently there at Havieron rather than relying on that that PFS or at least demonstrating the growth subsequent to that and building upon it
- now we didn't have the in-house capability of doing that prior to this, I think it's been to our great advantage that we did that and it's shifting the paradigm around that five percent away from being you know the see through value of that PFS because remember that was the milestone trigger for that five percent and really what we've been tirelessly advocating for is that there's more to be captured, that Havieron is a bigger beast, we understand it more and having the expertise not just to understand the geology but to understand the resource geology the mining engineering the processing, understanding the legal nature of the joint venture and also the funding of it are all absolutely essential elements to the whole recipe of making the Greatland soufflé and we need all of those elements you can't miss an ingredient and still have the perfect soufflé

* Shaun to me in a way that makes perfect sense you're able to stick it to Newcrest in a way that you simply wouldn't have been able to previously?
- that's precisely not what I said!
- yeah, but we do advocate our value, thanks Donald


* Sorry I do apologise, did slightly misquote you there okay an easy question well welcome back Shaun says Nick, welcome back Shaun I was pleased to see that we're drilling at Blackhill’s, famous of course to many of us for the generous gold nuggets which were recovered from surface in the first few days of field work back in 2018, those happy days can you please confirm they're still hidden away in the company safe?
- they are indeed, we bring them out whenever someone gets a document out they do get passed around the office one more time but that they're still there fantastic

* Thanks Nick AND I’m sure Nick's delighted to hear that, okay yes Steve also asked the technical committee question , moving on Phil asks the GGP MRE mining plan shows a stoping phase into the northern corridor, Sprott's research note also suggests this operation, in the PFS they suggest a 3 million tonne or more operation how do you see the mining plan developing and what other infrastructure would be preferable, conveyor decline or hoist?
- Phil great question so look I think when I think about this this ore body I really think about it in terms of this this high grade backbone being the South East Crescent
- that's a single decline access, I think the most you're gonna to run up the single decline access is typically around that that three million tons per annum, that's a that's an efficient decline of truck movements
- I think that continues right through the life of mine then you've got the opportunities of how you take Havieron to the to the next level that's a second access if you're going to put in a shaft you want to have that decline in place already as part of giving yourself a platform to develop that shaft from or a conveyor decline
- equally you can come at it from both directions so having that first piece of infrastructure in is essential
- the other thing I want to just touch on there is you can then put drill platforms off them allowing you to punch into the ore body across those lateral levels that is more efficient it's cheaper and the cycle times for that information is quicker so we'll unlock our understanding and the full potential of Havieron quicker
- so having this decline infrastructure there gives you a lot of options, now this is a sub vertical ore body, looks like a cylinder it's it really does I think lend itself to a shaft or a hoist I think Phil said the look I think what you also see is Newcrest uses a conveyor dedicated decline at their Cadia mine hugely successfully
- I think they move something like 30 odd million tonnes per annum thereso I think both create you know very efficient and effective solutions, there'll be an optimisation around that or even you just have a second truck and haul decline there where you could you know say double your throughput on the South East Crescent
- but I think my into my mind ultimately you maintain that three million ton per annum South East Crescent and then you put either a shaft or a conveyor decline and you open up that block caving or bulk mining opportunity and I think that eastern breccia just in terms of its location being in a place where you could bottom up mining with block caves, get right down to the bottom and tackle that eastern breccia, it sits out away from the South East Crescent
- perhaps that's the first cab off the rank in terms of moving to the next level and that's hugely exciting to have that potential sitting within the ore body because remember this South East Crescent is really only a fraction of this ore body and even that South East Crescent, we're starting to get to grips with it but we don't there's still lots to come there
- so this is where you know we should be out performing our peers you know we are on a fantastic growth trajectory and the 50% increase in resource and reserves is testament to that

* Now in your in your slide pack you had a strategy on a page slide with a five-year vie, now Peter's asking about that five-year view and he's saying please can you tell us once we you know let's fast forward five years and tell us what the company looks like then?
- yeah look I think you know my vision is around yeah a very successful Havieron being the foundation asset to our company but you know I think if we do have that foundation asset in place there is a tremendous opportunity to augment the platform
- bring in you know you know likely 100% owned assets so we have that expertise in-house and we leverage that underlying free cash flow to expand the organisation and I think this is about the benefits of diversification and diversification can be multiple operating assets which creates a more consistent and predictable outcome over time but also diversification of commodity
- you know as I’ve said plenty of times I love the fact that we're gold and copper so and there's other base metals kind of in that system which I think are really interesting to us as well which we you know we continue to try to work up and understand
- so I think we already have a degree of diversification but I think another asset would add to that and ultimately the vision is to have a multi-asset multi-billion platform
- it's financially disciplined and I think our acquisitions or mergers or opportunities you know it should all be around financial discipline but adding scale does give you greater relevance and interest in the market including being index aware, being in indexes where there is compulsory institutional buying is beneficial to us (note: such as ASX, LSE etc.) and all those I think are levers that are ahead of us to create value

* Excellent, okay so let me ask you, Josh so I forgive me I wasn't able to find it in time but Josh has asked quite a long and complex question but essentially he's saying why are you not land grabbing more of Paterson which would fit into that five-year plan but what are your thoughts on that one?
- well where we are and we continue to so look I think you know we did the Provence transaction early which was good, we have picked up I think some new ground through the pegging system
- but look you know there is you know there's nothing to be announced or anything but we continue to have conversations with people who hold land packages that we have an interest in
- now everyone sees the potential benefit and the size of the prize up there so no one wants to give them away but we continue to work with them and I think our greatest single strength in that regard is our reputation
- I think we're seen as a credible well-managed experienced team when it comes to exploration particularly in the Paterson and undercover, it's our competitive advantage and I think we see that, I think we have a very disciplined approach that I’ve you know described before where we're led by first principles, we understand we'll drill one or two holes understand the stratigraphy reassess that against our modelled expectations and then you know recalibrate reassess redrill it's it's efficient it's high quality it's technical driven and I think we're respected for that
- and you know some of that respect might be seen in the fact that we are still the manager for JURI JV, Newcrest has had the right to take over that JURI management I think for about 12 months now, I think it's a vote of confidence that they continue to trust us with that asset and a number of other assets that they have been in a similar position hey've taken over the manager role even this calendar year so it isn't something that they do lightly, I think it's a vote of confidence in us by a global major in Newcrest who you know are absolutely world-class in this regard
- but I think other organizations in that Paterson also see us as a preferred counterparty and certainly what I would like to do is try to come up with a strategic relationship with some or one of those to unlock value for our shareholders and increase the option value in our portfolio to find the next Havieron, so it's very much in my mind
- I like Ernst Giles for the same reasons so it's an it's a great question and certainly consistent with what I’d like to achieve and we spend time energy and effort trying to achieve that

* Andrea asks what proportion of debt versus equity financing do you roughly anticipate for funding capital costs that have our own project so perhaps you might put the costs in context for us and then tell us the balance
- yeah so look we have the debt side in there which adds up to about USD 123m dollars so that the capex that that ultimately needs to be funded, where we are in conversation as I’ve mentioned before with debts so with bank around debt we have a number of term sheets
- we have a very high quality asset so what does that do that allows you to potentially add additional leverage
- if I can I will borrow 100% of that capex you know through the debt process and may I add we're talking to main street banks you know so branded banks that you and I know or might have bank accounts with so you know highly credible tier one organisations
- that's not to say they might not still want us to add some equity as part of getting that right debt to equity ratio there but I’m aware of the magic of leverage in terms of delivering shareholder returns and that's beneficial to us all but we also want to get the right balance
- we don't want to be over levered we don't want to be under levered so and that's really something that comes to the surface or percolates through the course of a banking process but certainly you should be confident that I understand the benefit of leverage and I think we have an asset that lends itself to achieving that

* Ray asks will it be likely we get dividends for our shares at some point and if so, how much per share might you envisage?
- I’m a dividend kind of guy so absolutely I think equity has a cost just like debt so I think just like you pay interest on debt it's good to have the discipline of paying a dividend on your equity it reminds everyone that it's not free and that it's a yeah it's precious capital that we need to respect and cherish so you know once we're in free cash flow obviously the first call of our cash is to develop Havieron
- and we want to do that we want to get to free cash flow we want to reinvest at least some of those cash flows back into Havieron continue that drill and we've talked about that bulk mine potential
- that's a priority but if there's cash available and you know there should be yeah I’d like to introduce a dividend and my history at Northern Star we always used to think it distinguished ourselves as having the discipline of paying a dividend and at Sikari we had a huge dividend policy that was a 65% profit pay-out ratio
- it's certainly in my DNA to include a dividend, love to do it but there's a little bit of wood to chop before we get there so I probably won't be able to tell you a cents per share today but the better the gold price the better the dividend

* How long just even very roughly might you say before you can anticipate paying a dividend?
- just very it comes back to the debt proposition as well you'd also want to you know… it's not too different to running a household you want to get on top of that mortgage debt before you start you know buying a Ferrari or something but the you so first you want to get into free cash flow reinvest in the mine, manage your debt down, don't have to fully repay your debt but have that in a really manageable position and again banks will have structures around that they'll want to make sure that they feel confident of their probability of being repaid before dividends start flying out so there'll be hurdles to jump over to pay dividends
- you're certainly you know a year or two after you hit commercial production but you know that's not that far away for us but I think it's people should have confidence that that is our intent and that we'd like to do it and this is a world-class mine, the infrastructure is already, there the ramp up is quick you know perhaps we can surprise ourselves on the upside

* Okay Bernard who describes himself as a very long-term holder, his question fits very neatly into that when can we expect first ore from Havieron to Telfer?
- well firstly thank you for being a long-term shareholder and in terms of that the narrative around that is early 2024
- as that decline continues to get down there, that's really the gating process as I said it continues to accelerate and that the market expectation I think it's a fair one - so it with that that's that remains our our target date (Host, so 2024 yeah?) yeah correct, calendar year 2024 yep

* Great, okay inflation you touched on inflation in your update with rising inflation to the board to anticipate there being higher expenditure before production, sensible question
- yeah look, I wanted to talk to inflation up front just because it is something that you see talked about more and more what we we've probably had you know super low interest rates and low inflation for what seems like you know 15 years so you know inflation you know is now a relevant talking point again
- so look I think we are some you know I think where you see the real impacts of inflation and I guess I’m talking in the context of the Australian and particularly West Australian mining environment is around new construction processes
- you know there's a lot of work happening now that is competitive to get resources yeah they're still shipping delays around the world and supply chains are still not really kind of at full throttle again and there's this semiconductor ongoing kind of shortage
- so what you're seeing I think particularly around you know project developments or construction you're seeing some genuine inflationary floss pressures, one of the benefits of our joint venture of course is we're actually immune to that we already have our processing part in situ and operating at Telfer and it's not just the processing part you know the bitumen airstrip the accommodation store sheds, critical spares it's 35 years of inventory sitting in those sheds so all of that I think is is really beneficial and you know there's some 1200 people in situ at Telfer
- if their train b is dedicated as intended Havieron you know there's an opportunity to bring some of those people across or dedicate them on to you know Havieron activity so I think this you know this joint venture structure gives us a level of immunity that you have being an incumbent producer and then also you've got the expertise experience and management of of Newcrest sitting in there which again I think is the best position to be in these circumstances
- so I feel really good you know if there is inflationary pressures across the sector I think we are relatively insulated from it we're already at the bottom of the cash curve and perhaps we outperform a lot of our peers in an inflationary environment so I feel confident it cements and perhaps improves our position on the cash curve, write down that… the good pointy end of it

* If you had to filter in an inflationary figure for some elements of works and the future. would that be roughly 10% or so you know gives us some sense of what number you might be factoring in what are you modelling?
- yeah no I think you know I haven't seen you know 10% but yeah I’m sure everyone's experiences is different and you know it is you know what do you talk down to inflation and you know as opposed to a cost overrun or something like that to my mind you know it'd be half that you know without trying to put a number on it but I haven't seen 10 percent but you know having said that look you know to be open with people we've put together a really good group of people, they have worked tremendously hard you know particularly over the last nine months we've been running at an unusually high tempo
- you know we do need to look after those people and in an inflationary environment particularly in Western Australia where you know experienced high quality mining people are at a premium you know we do need to look after those people and you know I’d like to get some more equity in their hands and align them with shareholders and say guys you know we're not necessarily going to pay you 10 times more but you know have you know share in the prize that you create

* Okay which in a… it's a very roundabout way but in a roundabout way people are keen on you and the senior management team buying more shares I think, retail investors always see alignment with management holding shares in the company that they run so are there any thoughts of you and the senior team getting and buying any more shares?
- yeah I can speak for myself there definitely is and I think the price is reasonably compelling but without commenting on share price but the you know I think I’ve answered this once before maybe not on this platform but people have asked these questions and I think people also have to understand you know trading platforms are incredibly regulated these days and there's great benefits and credit to that but also it means that there are blackout periods where management can’t buy
- I’m obviously privy and I… wait you asked me about the five percent option period before and I said I can only be quite measured in my comments, I obviously have a much deeper understanding of that process so I think it's fair to say that you know our team is probably presently in a blackout period where we could not buy stock but that doesn't mean we don't emerge from that at some point
- so you know we have I guess what I’m really trying to say in summary is we have restricted periods where we can participate in the market but yeah I think the next you know when those are when they are open to us yeah I think there is some pent up demand

* Greg asks when do you expect the next phase of drill results on our other tenements to filter through there you go a nice easy one
- well I’ll answer it in two parts well I don't think the question actually covers the first part but we do have that cadence around every six weeks trying to get up out of an another update on Havieron which I think everyone appreciates
- then if I move across to our own drilling campaigns look assay times are still turnaround times are still long
- there were some new facilities opened in Australia which were intended and anticipated to shorten those times really that the sectors continue to be very strong and fill that up but equally it's been hard to actually get people any way and you do need you know some quite you know good level of technical training and competency that to run those facilities to run them 24/7 I you know my understanding is not yet being achieved
- so look it there's still very solid you know plus eight week delays on assay turnarounds so where are we now with our drilling campaign, we started spinning a rig up there it's an RC rig really just getting through putting in the collars, that's a cheaper faster more efficient way to get through that that Permian layer and then we're going to come in with a drill rig as a second rig to take out that diamond core so, so that's kind of happening as we speak but there yeah there will be delays as we slowly shift through to get the diamond core and then get that out in assay form but we do get them out quick snap, you guys know you know in a reasonably short period from when we get it you know once we can wrap an RNS around that, we like getting those out we like keeping you informed

* Chris talks about spoofing, are you familiar with spoofing as a concept Shaun?
- no that that might be an English thing

* Yeah you know what that is let me let me run you past this because I had to check it out just to make sure I knew exactly what it was, spoofing is when traders place fake market orders either buying or selling shares and then cancel them before the order is ever fulfilled, spoofing means that someone or something is spamming the markets with orders in attempt to move share prices, Chris’s question relates to that and it says that happens in terms of day trades and he's cross about it and he thinks that you as the as the managing director of GGP ought to be I understand that that's happening and get involved with sorting it out, do you have a point of view on that?
- look an orderly market is incredibly important to us, you know I have had discussions with the NOMAD around you know just making sure that you know we both feel confident but yeah the London markets are you know incredibly sophisticated and you know world-class and respected universally so I think we all should have a level of confidence and comfort
- I think one of the lovely things about us is our liquidity, this is not a stock that you know one trade can necessarily move it over time you know so I think and multiple market makers so I think we have some levels of insulation
- I will you know make some enquiries around this but I also think that we're very lucky to have such a liquid well-known and well-traded stock and you know that that does yeah it certainly gives me a level of confidence in it

* But I suppose being big a well traded stock comes with its downsides as well, you attract all sorts, shorting , you attract spoofing, that's the problem about being a… you're a major player yeah you have the same problems that other people have?
- yeah look and I think some of those things are universal whether you're you know BP or anything in between but yeah having said that I think you know the London stock exchange is you know is one of if not the premier kind of platform on the on the planet you know for a reason and it's an exchange we should all be very proud of

* Great okay Edward asks… perhaps potentially the last one the GGP, do GGP believe there's 20 millions of ounces of gold at Havieron and if so why hasn't Newcrest confirmed this, will they confirm this this year or next year?
- well look I you know I think a little bit like you saw with the you know our update to the resource and reserve you know this is our prize asset we are probably you know it's more relevant to us, it's more important to us you know, it's a it's a focus for us so you know Newcrest will you know move in a very you know professional measured and sophisticated away and they're a great organisation but I think there's also an opportunity for us to be advocates for our own asset and again you know….
- there's a you know we've probably talked about the team a couple of times but this is why we've built the team so we can understand our asset so we can advocate the asset and we can choose the time and the place of how it's described in the market and I think that gives us a huge amount of capacity to describe to the asset and be in control of our own destiny to some degree
- so look I think when you look at the ore body itself and I’ve talked about that kind of cylinder shape, I think when you do some basic you know volumetric measures of that in grade zonations, you do get this very big number and you know the analogy I’ll give is Telfer is a 20 million ounce ore body, it's taken them 35 years to mine about 13 million of those ounces
- now that doesn't mean you ever take all 20 million ounces out of your ore body you know at some point the grade curve goes low and it's not super economic to take out those ounces and that will be the same for Havieron, you really take every single ounce there, they fall out of economics they fall out of mine plans but having said that it is a Telfer scale ore body, we're already at six and a half million ounces of good grade material yeah I reference the 13 million ounces at Telfer that's been mined
- certainly this early on since the discovery of the ore body yeah I’ve already mentioned our last update we're at 50% we're still in this high growth trajectory period it's not a huge stretch the imagination to seeing this these number of ounces of good grade ounces of potentially mining ounces are continuing to grow tremendously strongly
- it's subject to expiration success that's subject to the all these ongoing vagaries but to date it's been a wonderfully consistent high grade good quality ore body and then as we get to understand that northern breccia and eastern breccia better we have you know the opportunity to add them, you know we have the gap zone sitting in the between the Eastern Breccia and the South East Crescent you know that's a wonderful place to put some drill holes through
- so yeah there's lots of opportunity there it remains open at and a huge opportunity to continue to add ounces through the lateral levels of that ore body, it's a beast it's a really good quality ore body, we should celebrate what we have

* Any discussions about move from AIM to FTSE says John?
- look it's a… it's an interesting question I did talk about being index aware as well before and I think that is part of that equation, so yes is the answer as part of that we will consider you know yeah a couple of different exchanges
- FTSE I think you know we should consider ASX we're beyond… we are an Australian asset, a lot of our peers there are there but I think if we did something like that it'd be cross-listed you know keep all the benefits we've got here in London but augment it by bringing in some Australian additional Australian demand or movement to the FTSE again, get the indexes get the indexes in Australia and again it's a you know both are world-class platforms but obviously the FTSE is the premium listing

* Okay and two people ask about the Sprott release, which I was that yesterday they say there's a valuation of 17p by Sprott, George asks about that somebody else as well so that's two people asking about Sprott, what's your what are your thoughts on that?
- look we'll firstly brilliant to have Sprott on board there you know that they yeah but equally you know I really love the relationship with the existing group of brokers so we don't want to just focus on the shiny new toy
- we want to appreciate what we have already there they all do a great job and we have strong relationships across but let's talk to Sprott for a moment, their research is on a slightly different basis to the existing research and what I mean by that they our anticipating holding is 25% not 30% in your body so you probably want to recalibrate that that share price based on that potential outcome (20.4p) and we don't know what that outcome is yet but I understand why they've made that decision
- you know we think it's a Havieron is a world-class prize presumably Newcrest covets more of it so good to have them on board , I think you know it's supportive it's recalibrated in this market but they are advocates for us, it opens doors to new fund managers, a strength in North America as well
- I think this is really advantageous to us as a company and as a group of shareholders so thrilled to have them on board and I think it's a good research piece for those that that want to get the opportunity to have a read

* Gillian asks what was the NOMAD’s outcome on your previous inquiry now I have I don't really know anything about this so you tell me if this makes any sense to you?
- I wonder if this is a new question and she picked up a response before but well I think I just talked about orderly market yeah look I think it's right for me if someone raises a question to socialise that or to raise it with the NOMAD and that they are effectively our portal into the regulator and people you know should have confidence that you know we take an orderly market very seriously but again I think the LSE is a wonderful platform and you know we should you know be very grateful that we do have this incredibly sophisticated long-standing and well-respected London stock exchange platform here

* Okay final question great consistency…. question from Josh, could you give a little detail, great consistency across the Havieron deposit is it is it homologous… is homologous a word or does it pinch and swell over to you?
- no you know particularly down that South East Crescent we see this lovely consistency of grade and yeah and the South East Crescent is kind of where we expect it to be and then when one for four I think that we dropped in about 250 300 meters underneath the existing resource again, like clockwork we hit South East Crescent with a consistent grade
- so that gives us a lot of confidence as to its ongoing continuity that that drill hole was previously announced
- so yeah no look I when I was saying that I was specifically referencing the South East Crescent but also the broader kind of lower grade if you will brachiations across that northern breccia in the eastern breccia are strong again, we're getting 200 meter intercepts of mineralisation you know they're really good and I think that high grade South East Crescent I’m sorry that high grade intercepts on the south of the eastern breccia certainly worth following up where we're really keen to understand how that continues to evolve and what can be there because high grade areas are lovely
- you know you prioritize you pull them out quicker you generate free cash flow establish your infrastructure and then once that infrastructure is in place the threshold or the hurdle rate for bringing additional ore is obviously lower so that's one of the magic things about if you were designing an ore body an underground ore body from scratch, you would put a big high grade backbone to it, you would make it sub-vertical and you'd put this lovely you know clean delineation so you can put your infrastructure outside of your… yeah look this is a nice underground body it's made to be mined

* And there we are, that's it I would just like to say a huge thanks to Shaun Day because he's been fantastic he's stuck at it and answered all your questions and as best they can and we've asked them some pretty difficult curve balls so thank you very much indeed to Shaun that's as many questions as I’ve ever seen asked and we've got so many of them answered so thank you Shaun and thank you all.

Link to download in PDF format:
https://www.mediafire.com/file/v4g8c6ss ... 2.pdf/file


Bonus Content and Essential Reading:
The Drunk Notes from Town Hall – Stuart does London!
The follow up Town Hall in the evening was attended by Telegram Group admin groups one and only Stuart who armed with a cask of red wine, an iron liver, obsession with GGP and profound ability to perform whilst drunk and disorderly put together the following notes while lying seemingly inert and incoherent to a causal observer on a park bench not long after the event – heck of an effort!

Essential reading to get some off the record feedback and perception to shareholder questions from Shaun:
https://www.ggpchat.co.uk/viewtopic.php?t=318

The End!