Notes from Proactive Results and Option Exercise Interview - 21 July 2022
Posted: Thu Jul 21, 2022 10:22 am
Notes from Proactive Results and Option Exercise Interview - 21 July 2022
RNS 1 : https://polaris.brighterir.com/public/g ... ry/w9e6ndr
RNS 2 : https://polaris.brighterir.com/public/g ... ry/xjj67ox
Interview: https://youtu.be/3O4Yy9o5aHI
Slides: https://greatlandgold.com/wp-content/up ... atform.pdf
Link to follow-up GGP hosted interview talking through slides from new corporate presentation linked above:
https://youtu.be/cmkwZ53E7dQ
* Walk us through latest announcement that an independent arbitrator has made this decision that values the Havieron asset at a more than 5 times uplift in value? Walk us through exactly what this decision means?
- Really important result for our shareholders and I think a really tremendous outcome
- Effectively resolved long standing issue whereby in eth Joint Venture Agreement (JVA) Newcrest had an option to acquire another 5% of Havieron
- Today we’ve determined what that option price is set at
- Now this option price was set just after 2 months that the PFS was released (option called in early December 2021 after PFS published in October) and we’ve been able to shift that value up 5.3 times, about $1bn (USD) increase in value in 64 days between release of PFS and determination of that option price, that is just remarkable and testament to the quality and opportunity of Havieron and it’s still in a huge growth phase so really delighted to have achieved this outcome
* Important not to undermine the work that’s lead up to this moment, namely resource and reserve updates, give us some colour and background as to what work you’ve been doing behind the scenes here?
- We came out in March with that unilateral resource and reserve (R&R) update, 53% up in resource and 50% in reserves and that is the absolute foundation for understanding the value, understand the crescent, the resource and updated mine planning
- They are the building blocks to value and even that was such a detailed process lead by the team here but had Stuart Masters off the JORC committee co-sign off as ‘confident person’, had SRK sign off R&R so double peer reviewed, had NTech help us with that and then SRK
- Had SRK come in and do some independent work around the broader 5% process, had investment banks, even had a QC opinion on the mechanism of the JVA
- Extraordinary comprehensive approach taken and delighted to be rewarded for the team and the effort of the team and was the whole of the team that delivered the outcome and testament to the calibre of the people that we have at GGP
* Exactly what is your take on this decision?
- This was always a bit of a David and Goliath challenge, the PFS had come out just 64 days beforehand, a very comprehensive some 360 page plus report, so for us to describe, articulate and justify an uplift of value was a real challenge
- The mechanism itself did make us want to be conservative because fundamentally this arbitrator had to make a decision of either one party price or another so you’re rewarded for being measured and justified in your submission
- But I think for me, not only does it describe a billion dollar uplift this 5.3 times uplift in the space of 64 days, but it is testament to the speed of growth that Havieron is currently experiencing
- You see that in the 50% plus uplift in R&R, see it in the ongoing growth drilling campaign and remember we’re still to bring in those bulk mining areas that really take Havieron to another level as well
- So this is a great direction for our shareholders in what way this value is travelling and I think we should be confident that we will continue to create value for shareholders
* Goes without saying there is some alignment with Newcrest, want to talk about exactly how this relationship is impacted by today’s decision?
- We enjoy a really good relationship, really respect their technical teams, I have a great relationship with Sandeep which I appreciate so that relationship is really strong
- But I think what’s lovely to have done is that in the JVA, there was always this win/lose scenario around this option price and I think to have got past that milestone, we are now fully aligned with Newcrest and we should celebrate that
- They’re a great JV partner, we also leverage the existing infrastructure there at Telfer just 45km away and now with this stronger alignment I feel really positive about the JV relationship which is building on already a great position of strength and closeness between the teams
* As we wrap up Shaun, important to note that there is more to Greatland than the Havieron story, what else are you looking at within the portfolio and your vision to bring these assets to life?
- Continue to focus on the exploration in the Paterson around Havieron as no better place to look for gold and copper than where it’s already been found and the Paterson is elephant country
- There’s Havieron, Telfer, Winu (Rio Tinto), so excited about that exploration and we have some drill rigs spinning up there as we speak and really pleased to look to unlock the option value in the portfolio, another Havieron, quarter, half Havieron would be a tremendous effort
- Also looking at getting drills out in Ernest Giles, think again that’s a Tier 1 exploration opportunity for us
- So exploration, unlocking value for shareholders through exploration is really important and Havieron is testament to what a tremendous impact that can make and augmenting that to look at other assets to bring into this platform
- Long term visions remains being a multi asset, multi-billion dollar platform and couldn’t have a better foundation asset than Havieron and today’s outcome is testament to that so it’s an exciting future ahead for Greatland.
- Really appreciate the discussion and those shareholders that have the time to listen in, thanks again.
Link to follow-up GGP hosted interview talking through slides from new corporate presentation linked at beginning:
https://youtu.be/cmkwZ53E7dQ
LINK TO DOWNLOAD NOTES:
https://www.mediafire.com/file/efhg1cev ... 2.pdf/file
RNS 1 : https://polaris.brighterir.com/public/g ... ry/w9e6ndr
RNS 2 : https://polaris.brighterir.com/public/g ... ry/xjj67ox
Interview: https://youtu.be/3O4Yy9o5aHI
Slides: https://greatlandgold.com/wp-content/up ... atform.pdf
Link to follow-up GGP hosted interview talking through slides from new corporate presentation linked above:
https://youtu.be/cmkwZ53E7dQ
* Walk us through latest announcement that an independent arbitrator has made this decision that values the Havieron asset at a more than 5 times uplift in value? Walk us through exactly what this decision means?
- Really important result for our shareholders and I think a really tremendous outcome
- Effectively resolved long standing issue whereby in eth Joint Venture Agreement (JVA) Newcrest had an option to acquire another 5% of Havieron
- Today we’ve determined what that option price is set at
- Now this option price was set just after 2 months that the PFS was released (option called in early December 2021 after PFS published in October) and we’ve been able to shift that value up 5.3 times, about $1bn (USD) increase in value in 64 days between release of PFS and determination of that option price, that is just remarkable and testament to the quality and opportunity of Havieron and it’s still in a huge growth phase so really delighted to have achieved this outcome
* Important not to undermine the work that’s lead up to this moment, namely resource and reserve updates, give us some colour and background as to what work you’ve been doing behind the scenes here?
- We came out in March with that unilateral resource and reserve (R&R) update, 53% up in resource and 50% in reserves and that is the absolute foundation for understanding the value, understand the crescent, the resource and updated mine planning
- They are the building blocks to value and even that was such a detailed process lead by the team here but had Stuart Masters off the JORC committee co-sign off as ‘confident person’, had SRK sign off R&R so double peer reviewed, had NTech help us with that and then SRK
- Had SRK come in and do some independent work around the broader 5% process, had investment banks, even had a QC opinion on the mechanism of the JVA
- Extraordinary comprehensive approach taken and delighted to be rewarded for the team and the effort of the team and was the whole of the team that delivered the outcome and testament to the calibre of the people that we have at GGP
* Exactly what is your take on this decision?
- This was always a bit of a David and Goliath challenge, the PFS had come out just 64 days beforehand, a very comprehensive some 360 page plus report, so for us to describe, articulate and justify an uplift of value was a real challenge
- The mechanism itself did make us want to be conservative because fundamentally this arbitrator had to make a decision of either one party price or another so you’re rewarded for being measured and justified in your submission
- But I think for me, not only does it describe a billion dollar uplift this 5.3 times uplift in the space of 64 days, but it is testament to the speed of growth that Havieron is currently experiencing
- You see that in the 50% plus uplift in R&R, see it in the ongoing growth drilling campaign and remember we’re still to bring in those bulk mining areas that really take Havieron to another level as well
- So this is a great direction for our shareholders in what way this value is travelling and I think we should be confident that we will continue to create value for shareholders
* Goes without saying there is some alignment with Newcrest, want to talk about exactly how this relationship is impacted by today’s decision?
- We enjoy a really good relationship, really respect their technical teams, I have a great relationship with Sandeep which I appreciate so that relationship is really strong
- But I think what’s lovely to have done is that in the JVA, there was always this win/lose scenario around this option price and I think to have got past that milestone, we are now fully aligned with Newcrest and we should celebrate that
- They’re a great JV partner, we also leverage the existing infrastructure there at Telfer just 45km away and now with this stronger alignment I feel really positive about the JV relationship which is building on already a great position of strength and closeness between the teams
* As we wrap up Shaun, important to note that there is more to Greatland than the Havieron story, what else are you looking at within the portfolio and your vision to bring these assets to life?
- Continue to focus on the exploration in the Paterson around Havieron as no better place to look for gold and copper than where it’s already been found and the Paterson is elephant country
- There’s Havieron, Telfer, Winu (Rio Tinto), so excited about that exploration and we have some drill rigs spinning up there as we speak and really pleased to look to unlock the option value in the portfolio, another Havieron, quarter, half Havieron would be a tremendous effort
- Also looking at getting drills out in Ernest Giles, think again that’s a Tier 1 exploration opportunity for us
- So exploration, unlocking value for shareholders through exploration is really important and Havieron is testament to what a tremendous impact that can make and augmenting that to look at other assets to bring into this platform
- Long term visions remains being a multi asset, multi-billion dollar platform and couldn’t have a better foundation asset than Havieron and today’s outcome is testament to that so it’s an exciting future ahead for Greatland.
- Really appreciate the discussion and those shareholders that have the time to listen in, thanks again.
Link to follow-up GGP hosted interview talking through slides from new corporate presentation linked at beginning:
https://youtu.be/cmkwZ53E7dQ
LINK TO DOWNLOAD NOTES:
https://www.mediafire.com/file/efhg1cev ... 2.pdf/file