Notes from Sunday Roast Podcast – 03 March 2024

[DipSard]

Notes from Sunday Roast Podcast – 03 March 2024

Interview Link:
https://youtu.be/sw0xVNlO-_k?t=3311

GGP RNS’s:
https://greatlandgold.com/investors/regulatory-news/

Download Link:
https://www.mediafire.com/file/wo0447rh ... 4.pdf/file

[55m, 20 seconds in]

* So Sean let's have a look at some of the news that you've had since you last appeared , we saw the company acknowledge the reserve estimate for the Havieron gold copper project announced by Newmont noting it aligns closely with your indicated resource figures, despite differences in the inferred mineral resource category, attributable to the distinct reporting standards of the JORC Australian code used by Greatland and the US code used by Newmont.
Newmont’s indicated resource shows a significant 35% increase from June 2023 totalling 4.9 million ounces of gold equivalent slightly below GGP’s 5 million ounces estimate, the inferred estimate by Newmont stands at 900,000 ounces in contrast to Greatland’s 3.4 million ounces, you highlighted this as a testament to the asset's world-class status and the quality of Greatland’s technical team. Sounds like good news despite the discrepancy in the inferred category Shaun?
- yeah and look I thought we… otherwise good news the… I think it was a great endorsement again we had that previously with Newcrest this time more recently with Newmont where we had the 5 million indicated resource
- that's the resource where you've got a higher density of drilling, higher level of confidence and the indicated with what can potentially be bought into to reserves with an updated mine plan
- so that's the real prize there and the fact that Nemwonrt came out I think what was within 2.4% or something of our number was super positive
- there are differences between JORC and I think it's called SK 1800 over there under the US system, that system is much more specific and granular about what comes in and how it comes in, so of course there's going to be differences
- but look I think everyone's very comfortable with JORC globally so we kind of celebrated the fact that that that we both view the indicated resource there as having grown about 35% and coming out with a very similar number
- so another positive confirmation and a great testament to our technical team and Michael Thompson signed that off as our confident person
- I think they'll do a tremendous job

* Absolutely and that obviously comes at a very similar time that announcement that we heard that Newmont announced its intention that they would be selling six different mines obviously in various countries and one of those included the Telfer mine and their 70% interest joint venture with obviously Greatland’s Havieron project where you made that six years ago made that significant gold copper discovery.
So just tell us I mean obviously we understand that you're bound to by you know by what you can say on this, but ultimately what are your thoughts on that divestment?
- yeah look thank you Phil, and you're right I am going to need to be a little bit measured which is appropriate in the in the circumstances but I think your summary is really good
- Newmont came out and you know made a very transformational you know presentation and market update where they they intend to divest six operating assets plus two projects
- so eight in total which is a lot and that includes Havieron and Telfer
- we obviously hold a 30% interest through the joint venture in Havieron, that's our Flagship asset, yeah we we have a deep and unique knowledge and understanding of the asset yeah and of course you we love it we're interested in it and we want to see it reach it its full development for the benefit of all stakeholders, so we find this a really interesting opportunity

* So, Sean, I can ask you a very sophisticated question, would you're not willing to answer probably because you can't because your hands are tied behind your back but are you smiling or are you like desperately upset that this has all happened… for viewers for viewers who can’t see, you’re grinning like a Cheshire cat, he's now laughing not just grinning... okay
- so you probably want to play me in poker given…

* I think this will be the only podcast that goes out with video I think yeah we put the video out as well, so how do you feel personally and from a you know Greatland Gold’s point of view I mean obviously to progress the asset to where it is now was always a challenge and that you needed a major to help you do that and then it seems It's the optionality now is being presented to give it back to you effectively?
- to be honest Kevin, I think that's really good summary, it's a little bit hard to me to add too much to that in terms of you're right like you're having a major help us expedite the development of Havieron has been tremendous
- we've also had the benefit of Newmont come in I must say operationally they are a organization we respect you know really highly and we understand that they've got a global portfolio and they they're doing an optimization
- but as Tom Palmer their CEO has said they're going to divest a number of really high quality assets, just not the assets that sit in and I think what they effectively want to have is a portfolio of 10 of the world's 15 largest gold mines across the planet
- so the fact that this potentially comes out we've certainly felt we've matured the GGP organization at a board at a management level, shareholders strategic shareholders with Wyloo where we are a credible counterparty to deal with Newmont in due course
- and you know we're excited about the opportunity that affords

* And I mean I think I think that's a very good point, I mean GGP is not a small cap penny stock anymore even though obviously it is a penny stock in terms of its price, but the reality is the board and the ability to progress this asset…. three years ago you wouldn't had a hope, now you can do it is that fair?
- yeah I agree I think we we've tried to mature as an organization and you know that's not to take away anything from the team beforehand and of course we should celebrate Callum Baxter the geologist who… it was his drive and his vision that discovered Havieron and deserves all the credit in the world for that
- but having said that as your asset base changes and as it went into development I think you enter a new phase
- and I like to think with taking advantage of that and just giving ourselves a more capable or not in terms of the huge capability it previously possessed around exploration geology like to think we've retained a lot of that organizational capacity
- but we've added in other ways and I think it allows us to present to the market and to a vendor of an asset not just Havieron but any asset that we are a credible counterparty and I think that's a hugely advantageous position for us to be in

* So from the POV of Greatland, if and when. I know you can’t answer that but if or when you have the optionality to now buy the whole of Havieron, which I think you do practically, I know that has to be cleared up a bit more, but you do basically have right of… first right if you like to take on the Havieron asset and possibly with Telfer of course being close by what sort of change in economies of scale would it make to Greatland Gold to have 100% of this asset?
Obviously you're going to have to take a hell of a lot more debt on but the reality of the situation would be you know the revenues that would come from 100% mine like this would be a game changer for GGP and how do you feel about that?
- the opportunity to consolidate 100% of an asset that the quality of Havieron would really move Greatland up the league table so to speak you know within our peer group
- and size has a quality all of its own, so I I think you know we think it's a a world-class asset in in Havieron, it's testament to the quality of Newmont that they would even you know contemplate you know divesting an asset of this quality and other assets in their portfolio that are also high quality that they're you know considering divestment
- you know for GGP that originally kind of discovered the asset to potentially have a pathway where we own 100% of this… that are able to kind of complete putting into production that really would be an amazing transformation

* Yeah I mean from my own perspective I see maybe it takes it a little bit longer because obviously there's negotiations and all the stuff to happen, but the amount of free cash flow that you're going to shed from this is surely going to allow you to become quite a force in terms of affording your other projects and also be in a situation where you know you're going to be up for buying other assets whether be in Australia or wherever in the world and effectively GGP become a mini major?
- yeah we have a this unique knowledge and understanding of the asset which we feel gives us a competitive advantage and you're right owning 100% of a long life high quality asset be that Havieron or any other asset is a platform that we can continue to mature the business with
- and I think the team we put around at all levels of our organization with the quality of debt funders that we bought in, the quality of equity backers we have given us an opportunity to unlock the full potential of the platform over time

* Well Sean, we wish you luck, I know you're sort of a bit hand tied in what you can and cannot say but as the process progresses, we look forward to speaking to you again and as we said maybe this podcast with Cobra Resource’s also being based in Australia, we might actually come and visit you in your hometown and Havieron later in the year.
So, let's see how that all pans out and hopefully you can have a sticker with 100% on it, not just powered by Greatland Gold, Greatland Gold in dye. Yeah, excellent okay we'll say, Shaun Day, MD of GGP, thanks very much for your time
- okay thanks gentlemen really appreciate it as well.