Key Notes from Proactive Forum Q&A - Nov 11 2021

[DipSard]

Proactive Forum Q&A - Nov 11 2021

Presentation: https://youtu.be/xGSMoywDi9A?t=1107

Slides: https://www.proactiveinvestors.co.uk/up ... -short.pdf

Notes from Q&A section only, a 20-minute presentation also precedes the Q&A in the link above.

*When does Shaun plan to buy some shares?
- Been involved in a Pre-Feasibility Study (PFS) most of my time at GGP so been in a blackout period as entails having inside information not generally available to the market.
- There have now been some price discovery and announcements post the PFS which probably does give more of an opportunity to purchase shares, am eager to join the ranks of shareholders.
- Watch that space!

*When will the MRE (Mineral resource Estimate) update be released, 2021 or 2022?
- Both infill drilling intercepts, expansion of the SE Crescent and into the Northern Breccia and building up the High-Grade (HG) component through the NW corridor bode well for where the resource update leads us up to.
- Would like to get something out by end of 2021 but having said that will give a range estimate of between Dec 2021 to Feb 2022, GGP and NCM will both generate resources and then harmonise them to release a resource update together.

*Can Shaun confirm the presence of other metals such as Nickel?
- One of the interesting things about Hav is that it does contain nickel, in some of the areas the value of the nickel is greater than the copper.
- Will be spending a little more time on to understand the nickel elements in Hav, again there is such a huge amount of value in the gold and copper there that it hasn’t been a focus for us, but clearly you want to understand the full value there.
- Certainly, interesting from a geological perspective.
- Additionally Bromus and Panorama both have base metal prospectivity and nickel could potentially end up being one of the key targets there for us. Plan to look into these in the next 12 months.
 
*Plans to drill the two new Havieron look-alike targets just announced?
(Canning and Paterson South tenements)
- Like to be doing that in calendar year 2022 as part of next year’s exploration program.
- Team is working up next year’s exploration program, already had the budget planned out, but now bringing in these additional targets.
- Usual process to exploration is to test, then recalibrate and reiterate program during Nov-Jan period when maximum heat in field and trying to minimise the teams being out in isolated areas.
- Shaun likes the targets and wants to get in on them, but we also have similar targets which will get equal attention in the 2022 program.

*Any plans for a stock consolidation?
- Over time there would be a potential to do that, we’ve grown a lot and the share price is relatively low given the number of shares in issue, so perhaps that is sensible.
- Probably will not be done in isolation, try to do it as part of a broader opportunity such as a restructure, refinancing or perhaps an acquisition.
- Certainly a sensible thing to be thinking about If an opportunity came along to do this.

*Will you seek to extend rights on the Tasmanian projects?
- Really like them, good quality and hold good potential for mineralisation and some has already been discovered there.
- You should expect that we will keep these tenements in good standing.
- Their potential compared to Hav is a little bit smaller in keeping with Tasmanian projects which are HG but typically smaller.
- Shaun is favouring opportunities where we retain interest with a partner who could focus on them versus divesting as likes the ground and wants to retain an interest there.

*How will the FMV (Fair Market Value) price of the 5% option Newcrest holds be calculated, given that the option terminates by 12 December 2022 - before the full value of Hav can be determined?
- Should Newcrest choose to exercise that option it does bring funds into GGP, which has its advantages.
- In terms of the process there is a negotiation period, ultimately then at some point an independent expert is involved to settle the value between the parties.
- Likes to think that the relationship with Newcrest is such that we would both want to make an agreement without going into the details of the JV agreements and final determination’s and thinks the relationship is such that you would typically try to reach common ground.

*Expand upon the notes in the company results RNS today about the costs associated with Hav being capitalised from 1st July 2020?
- From 1st July, we have taken the view that there was a reasonable expectation for the development of Hav into a mine. As such from that date, it was appropriate for us to capitalise expenditure associated with the development of it as an asset.
- All part of the evolution of GGP from junior explorer to developer and ultimately to a producer.
- Important milestone and you’ll see the balance sheet grow with that decision.

*Gold price is at $1860, you point out that you are the 2nd lowest cost gold developer, so not very sensitive to the gold price.
Even if we do see inflation being transitory and the gold price coming off, still on a big money maker here.
- One of the great benefits of an asset at the bottom lowest quartile of the cost curve is that it makes money through the cycle (in comparison to peers - see slides 7-9 in presentation deck link at beginning of this document).
- One of the reasons that Hav is such a prize asset is that its potential size and cost structure is world class, all of those factors combined and coupled with being able to leverage existing Telfer infrastructure for a low cost low capex pathway to development are all part of this conflux of events that make it such a world class asset.
- $1800 gold price is still a cracking price, still a scenario where we make over $1000 dollars an ounce, wowee!
- At some point gold will go back about $2000 and if I read the right literature, it will go head north of $3000 - really a question of how much money we make.
- Great spot to be in, the best gold companies to own stock in are those that also have copper credits.
- Around 20% of Hav is copper, I love our copper exposure - both for what it does to our cost structure but also it is a great EV exposure to have in the portfolio, it provides diversification, these are all really positive aspects.