Key points from Shaun Day StockBox Podcast - 07th July

[DipSard]

Key points from Shaun Day StockBox Podcast - 07th July

https://www.youtube.com/watch?v=1e4U_LA3sx0

- What attracted him to GGP is the confluence of a world class discovery in Haverion (Hav) that is unique to the sector and to be developing it next to the existing infrastructure of Telfer with a tier 1operator and JV partner in Newcrest (NCM), not just factors such as the processing plant, airstrip, village etc. but also the people infrastructure and their experience in processing similar ore for over three decades just 45km down the road.
- Additionally GGP provides a unique, low risk and expedited pathway to production along with the fact that the growth in Hav is just at the start of the discovery cycle. His aim is to develop the existing successful explorer into a miner and to be a good partner to NCM and leverage this platform for the benefit of all shareholders.
- Intends to maintain connectivity and engagement with retail investors and augment with institutional demand by using his background as CFO at Northern Star Resources (Australia’s second largest gold miner) and experience of engaging with Institution Investors (II’s) to increase demand, stability and support to share price while maintaining retail upside.
- Shaun believes that the current valuation is tied in to our initial 4.2 Moz MRE but still has tremendous potential to grow, with a 65,000 feet drilling campaign underway where every single hole has hit meaningful mineralisation with 75 and 125 metre type long intercepts.
- Augmenting the above is an increased focus on exploration in Patterson region such as the Juri JV and 100% owned tenements to find another Hav. GGP have similar targets to Hav in geological terms and want to put effort and energy into drilling these.
- Finding even just another half Hav would still create tremendous value to share holders.
- When comparing GGP to other companies as a potential template, Shaun points to Telfer down the road as a top 5 gold/copper mine for 35 years that really set NCM up for success where some parallels can be drawn and also Northern Star for corporate strategy, where they took advantage of the assets they owned and the opportunities in their portfolio.
- He feels GGP can reflect Northern Star’s growth by becoming another really good miner by expanding the amazing exploration team of geologists with the other elements of operational infrastructure (mining, engineering etc.) required to become a complete mining company. Hav is an extraordinary ‘launch asset’ to build a company from just as Telfer was for NCM.
- The gold and the copper held in our tenements is a beautiful combination with 20 to 25% of value held in the copper which he feels is the best way to play the Electric Vehicle cycle, ‘green’ gold and copper as such. Green in the sense that Hav is an underground ore body taking advantage of existing infrastructure, the carbon footprint of development and operation of an underground ore body in comparison to open pit is very low. This is part of the narrative he is building in the market, promoting the sustainability and virtue of these factors and the diversified exposure in holding gold and copper.
- This also provides a competitive advantage especially in the Australian gold Space where very few mid-cap gold players have copper exposure and remarks that Australian II’s seem very attracted by this.
- In reply to challenges to face before production he again talks about the intention to build the team and company but the advantage in having a low risk pathway to cash flow through the JV with NCM making this effectively a brownfield investment opportunity.
- Thinks NCM will focus the PFS on the existing 4.2 Moz ore resource and look to get into production rapidly i.e decline is already underway. GGP will continue to reap benefits of the growth drilling and over time get to understand the full size of this ore body and again emphasises being good partners with NCM, to keep up with them and be able to contribute.
- In terms of what is exciting Shaun, it is going into production at Hav, the decline reaching into the ore body and then setting up the in-mine infrastructure which will continue to build value as the time frame to free cash flow gets shorter and shorter.
- In regards to catalysts for value, first and foremost by showing the full magnitude of the ore body at Hav but in addition to this by increasing the level of activity of exploration both in and out of the Paterson region to find the next prize in our portfolio.
- Key pillars of strategy are going into production with Hav as the flag ship and growing the company with exploration, and adds that GGP is planning to invest more in exploration in the next 12 months than in the entire history of the company.