Righto buddy, borders, we got some action in the lithium, MMM
and a lithium is back. We're heading a bloody Brazil
and Brazil is not out of the question for an Axis mining
technology piece of equipment to head to.
Just 'cause they're Australia, mate, they were mate.
They Brazil, North America, they will go anywhere to make sure
you know exactly where those drill aisles are going on AGC.
They're the Mr 305 of the drilling world that is Mr
Worldwide. Trusted international drill
advisor Prestige. Well, what?
What? What?
Oh, I love it, JD. How are you, Cobba?
Bit of action today mate. I'm excited.
No, no sort of scratching around post quarterly's of things to
things to read about, talk about or whatever.
We got plenty going on. Ali, you've gone deep as well.
Oh, jeez. Yeah.
Not now we've we're going to West Africa with.
Everything starts with P. Everything's paid today,
Pilbara, Perseus, Predictive, it's all happening except Vlad.
They get to miss out. But no, I'll, I'll be touching
on the Perseus strategic investment in predictive as well
later on. Oh.
Good, good to have you back on the desk.
Jason back on the desk talking. To the desk a bit.
I've got a bit of shit going on in buying closed doors on the
desk anyway. We'll get You are the desk man.
You are the. Desk.
I am the desk learn about our goes right right.
Let's rip it Pilbra Pilbra minerals.
They've done a doing a deal. Latin resources are J, so you're
a Ding Ding. Ding Ding on Pilbra.
Pilbra. Yep, long or short.
Lol oh that's not good. No, I'm not sure.
Unlucky. Unlucky today though.
Yeah, right. Let's little bloody Jada you've
you've done the leg work here, mate.
Rip through the deal. What's going on?
Who's who? Give it to me, baby.
Alright, bit a bit of a lay of the land for people that haven't
been in as much of the weeds as we have.
So obviously Pilgrim Minerals buying Latin Resources all
script deal 0.07 Pilbara shares for each Latin resource share.
Now there you know, it wasn't too far off the speculation we
had just last week guys in, in that there was an all script
deal being readied by Pilbara. But you know, given the, the
relative share price outperformance from Pilbara,
that's not a a massive surprise on on anyone sort of part.
The deal values Latin Resources at $0.20 per share or $560
million market cap, $540 million enterprise value using a $2.85
Pilbara share price. So things have come off a little
bit since then. The Pilbara share price is off
5% today. So you know that that value has
come down a little bit. You can reword that in, in
another sense and call it 6.4% of the combined entity is going
to be given to Latin resource shareholders in in other sort of
ways of describing the deal. They've put it forward as a 57%
premium to the 10 day V WAP or a 32% premium to the 30 day V WAP.
So pretty straightforward scheme that we're talking about here
needs standard approvals as you see on, on the ASX for two ASX
companies. Not as complex as we saw for the
likes of Azure with that kind of dual track structure that was
being operated to kind of fend off the the likes of Gina or
Chris or whoever might interlope in the deal.
And the last bit just on rounding out what the deal is
all about is the major shareholder and board have given
their approval to the deal. That sort of speaks to 13% of
the shares on issue at Latin, and you've got other instos
there, including Regal, Waratah and a couple of institutions out
of Brazil. Yeah, it's isn't funny how
simple of the deals are when there's not as much competition
and the market's down. Very astute, Manny.
Doesn't have to be as funky. JD mate, this is the definition
of counter cyclical and this why This is why it's so interesting.
Give us the mate, you're the lithium market expert.
I'm not so sure about that mate, but we're chatting just, we were
chatting just yesterday and just sort of trading messages about
the, the state of the lithium market.
And obviously it's got everyone in the specific sector up in
arms. And then, you know, more broadly
in the, in the resource sector that we are, everyone's got, you
know, eyes fixed on it and seeing where it's where it's
going to pull out a couple prices because it's still a very
opaque market. And again, these can be just
prices pulled off one or two contracts that have traded or
one contract and a couple people confirming.
But Platts have said 6% spod is changing hands at US770A tonne
fast. Markets have said 800 U.S.
dollars a tonne, that's for, that's for 6%.
Remember most of the people we talk about aren't even churning
out 6% product. I've also seen hydroxide priced
at under 11,000 USA tonne and carbonate at a bit over US
11,000 a tonne. So the same kind of disclaimers
go, it's an opaque market, not much as trading hands.
What we can sort of say is that we've heard a lot of people
talking about inventory buildups that goes right the way through
the supply chain. And of course, on the back of
inventory buildups, you see the prices get whacked.
We've seen the same thing happen with copper in the in the past
few months. Supplies have increased right up
as the demand from China has pulled off a bit and prices just
get whacked on the back of it. Yeah, right.
JD, tell us a bit about Latin. We haven't spoken about them for
a while. We are obviously did when it was
frigging lithium mania last year.
But we better revisit it, mate. Lots happened since then.
They've expanded a lot from where they put it.
Initially that put a study out sort of into last year,
something like. That as well.
PA, preliminary economic assessment.
That's right. September, September of 2023.
I think we actually spoke about it at the time.
So who? Else spoke about it.
JD. This is what we do, isn't it
copper? The Mining News Centre, that's
right. So to, to give people a bit of
scope, we're talking about the, the Salinas project in Minacias
in Brazil. So as Pilbara very keen to
stress that's a, that's a mining region and it, it should be
known to a few people out there given there's ASICS companies
with interests out there, not to mention all the, the majors got
valet and what not operating out there.
The project itself, 78,000,000 tonnes at 1.24%, most of that 70
million tonnes of that is at Colina and the remainder sits
sort of in another deposit 12 kilometres away.
And of that 70 million tonnes, most of it sits in measured and
indicated. Very, very high percent measured
and indicated which is. Yeah, yeah.
So we saw a, we saw a resource upgrade to your point there,
Maddie, in May of this year. And the, the, the real change
there was the increase in confidence.
So you, you know, you do more drilling, tighter spacing and
all that sort of stuff. And that lifted the confidence
that lifted the amount of tonnes that were in the measured and
indicated categories up quite substantially.
They did use AUS 1200 dollar pitch shell to, to, you know,
sort of give them a bit of a guide and put it in a model.
It's an open pit project that we're, we're talking about.
So kind of keep that one in mind as we run through the numbers,
as you kind of get into as well, Maddie, on the actual mechanics
of the, you know, production and the project that they've put
forward. So the I guess the financial
metrics to give you I'll give you a breather for a tick JD
suck a couple of these mate. Please do it.
So MPV 3.6 bill at an 8% discount rate, 100% IRR.
But that was using 717 hundred bucks USA tonne spot.
So obviously considerably below that now, but we're not mining
it for fucking four years. So US $253 million CapEx or US
300 mil if they were going to do phase one and two together.
So I'll see and this is for DMS only that's and we'll we'll get
into that for this project and we'll talk about the
neighbouring projects that have had a bit of success with it.
So. Yeah, that's, that's a great
point. And that ties into a lot of the
the theories that people have out there as to why Pilbara
might be gone for this one. It is interesting to note on the
MPV comment that you make there, Maddie, one of the analysts, the
Baron Joey analysts asked near the end of the call today about
this sort of, you know, the the financial metrics of the deal
and it making sense and how they're paying for it and all
this sort of stuff. And you know, you highlighted
the fact that running through the spot prices gives you an NPV
of less than 500 million. You're paying more than 500
million for the company right now.
Obviously there's a lot of caveats to that.
They're they're paying in script and all these sorts of things.
But it was just interesting to highlight the sensitivity of the
project to the the to spot prices versus the future
projections on the lithium prices.
But I'm sure we'll get into that much more when we get into our
thoughts on the deal itself. Yeah, and they're not like the
General I think didn't Dale said it.
We're we're not mining this until the price is deemed fit to
do so, right? Yeah.
Exactly, so right production side.
So they were going for about half a million tonne of spot
5.2%. So mostly a 5 1/2 percent
product with ASC 3 product as well.
Whether they do like a that SC3 if they sell it or they just
stockpile it and then put a float in later on similar to
what Greenbushes did. I, I actually think it, it's a
good point, Maddie, you raised, I actually think listening to
the way they spoke about it on the call, they'll move away from
this in time. And they're trying to simplify
it because, yeah, I think they'll just focus on that 5.5%
product. And I think you just got to got
to take a lot from this PEA with a grain of salt because a lot
has kind of changed since then. And a lot of the rationale is
Pilbara coming in and being able to use their core competencies
to make the project better than the numbers that are highlighted
in the initial study. Yeah, yeah.
So as you said, JD big open pit and high strip ratio 18 to one
because it's like really it's all like stacked.
You'll see it. It's all these like sort of
stacked lenses. It's not like a big, bloody
massive humdinger. But they're saying coarse grain
spot. So DMS processing only so.
Yeah, I think the the the geology is a great point,
Maddie, how it's kind of stacked.
And there were a few questions again on the call in this one.
You know, everyone can kind of see that, the analysts can see
that and they're a bit alarmed by it, especially when you throw
around terms like tier one. That has got to be the most
overused term in mining. Everyone knows it, but it still
happens. Anyway.
Analysts were quite critical of how it all hangs together and
you know that this wasn't exactly highlighted in the
presentation that no surprise, but there wasn't cross sections
like that in the slide deck today.
But you know, Latin aren't hiding it.
You can see it in the the resource upgrade that came out
in May. We'll we'll chalk up a couple
images so you can see now and obviously we're not geologists,
but it's pretty clear that that is harder to mind.
You said Maddie in 18 to one strict ratio there again, they
said on the call, they're going to try and pull that down.
They think that, you know, they're confident that they can
pull that down. They've remodelled it with the
updated numbers because the the preliminary economic study only
used the initial resource. So that's only 30 odd million
tonnes. That's much smaller.
They've done a lot more work, a lot more drilling since then.
So things are already looking quite different.
I'd also give Pilbara a bit of the benefit of the doubt here,
given that they've, they've got a lot of experience with this.
You know, there are similarities to the ore body that they have
at Pilgangura. They've also integrated all
sorting. They've, they've commissioned
that at Pilgangura and you know that they have spoken to there
being less concerns around the host rock.
It's not as problematic as we might see at other operations
out there, but you know it, it is a challenge that they're
going to have to overcome. And you know, one more thing
working in their favour. We spoke about with another
project earlier in the week, but they have cheap hydropower here.
So it makes processing just a little bit cheaper given that
you you come your nuisance circuit, the energy going in is
one of the biggest costs when it comes to to processing.
If you're getting, you know, if you're paying four or five cents
a kilowatt there, then you know the the costs are a lot more
friendly than they might be in other parts of the world.
Yeah, well, we've seen it with our own odds that building or a
lot the internal docs within the Spodgerbane ore body like it's
something this this sort of stuff is what Pilbara have
always dealt with essentially. Now the all sortings come in,
which is I'm not too up on it, but I assume the more you do
something the better, more reliable it can't becomes.
So yeah, yeah. And then that's what'll need to
be need to be used here. You just got a shit load of GI's
marking the shit up in the pit. Probably the other important
thing as well is you know, this is obviously still all at a PEA
stage, right. So but and you know, the
projects change a fair bit, the lithium mark has changed a bit
since all of this was was put out.
But it'd be very interesting to say what a assuming this all
does go ahead, what a Pilbara branded feasibility study would
look like on this. Yeah, no, I've heard, I've heard
water mightn't be as simple as as it seems over there.
Yeah, that's a, that's another point to, to look at the
comments in the initial study. I went back and had a read they
were, they were fairly muted on that Maddie.
They they spoke about pipe and water from 2 dams in the area.
They also spoke about having a a water recycling plant as part of
the the study off the top of my head that was going to cost them
30 or 40 million bucks. So they talk about that from an
ESG lens, but you could be a bit cynical and say they need the
water that. Yeah, exactly.
Yeah. So the the other big point I
think we have to talk about is the permitting timelines.
And you know, not just as it's applicable to Latin and the
project here, but what the read through is on the permitting
timelines of projects around the world.
So we'll flash up the slide that we were chatting about
internally earlier. And you can see that these guys
mark this as as attractive as it comes in terms of the speed to
permitting. They used the example of Sigma
Lithium and that went in, in roughly sort of four or so years
from the first permitting. I think they had 16 months in in
construction. Yeah, I'll bring, I'll bring up
the I'll bring up the timeline off off Sigma's website.
So like DFS in 2019 and I think started construction 21 finished
Commission in Q123 and achieve commercial production April
2023. So that's lot from from DFS to
and they're in at 9 plate now. I think they pumped out so
they're predicting about I think it was 200 and 270,000 tonnes
spot per annum for stage one. They pumped out 53,000 in Q1
this year. So again, they're DMS only.
So like when you ask about like and that's the the whole thing
is like, is this DMS only a reliable processing option?
And where has it been? Because I saw what happened at
like call lithium. Obviously mount Catlin when they
were going through the finds had really shitty ass recoveries.
Mount Marion. That's effectively DMS only
because the floats there, but I don't think they use it part of
me. So you look at I think Sigma's
the the poster child for DMS only and they from what I've
heard, like I don't think they disclose it, but one analyst
says they get around 65% recovery DMS only and then
obviously have fines coming out as well.
I'm not sure if they sell the SC3 or not, but if you look, if
they so if you can get, I think effectively if you can get 60s
for DMS only look at because pill Gangora got 72% last
quarter, but the quarter before that they got 65% recovery and
that's, that's with flotation and everything.
So and yeah, we all know how long it took to ramp up the
flotation, the extra CapEx. So Sigma's DMS only option,
which was, you know, two years from construction to bloody
commercial production, you'd take, you'd take 60% mid 60s
recovery any day of the week. Like if you, if you can maintain
them consistently through the life of mine for the less CapEx.
So compared to putting a bloody flotation in, fucking around
with it for a year or two and just to maybe get another 5%
recovery, maybe 10%. And the speed to market?
Is Oh yeah, yeah. So this, you know, if the if
this is if Sigma's operation to go by, which is frigging 100 KS
down the road probably looking like that's the way it's going
to go. Yeah, I think it's a a good
point, Maddie. And you can see in the study
they they modelled in for the 5.5% grade product 67%.
So they're they're aiming for in and around the area.
You said on the point of permitting, it's it's super
interesting the speed at which they were able to go from
permitting all the way through to actually producing product.
I think, you know, it'd be, it'd be awesome if the Western world,
not that you know, Brazil is in a developed country, but places
like Canada and places like Australia could learn a thing or
two about a project like Sigma, which is not a tiny project, you
know, it's decent scale project. If they could learn a thing or
two about how we can get our projects online just a little
bit quicker in, you know, the same kind of responsible way, I
think. But I think like North America,
it's whether the regulatory agencies want to get it online
quicker, it's up to the Cree like the the natives like that's
the they're the people that are trying to you've got to convince
to be pro mining, which is. Yeah, you you need buying on a
lot of parts. It's not.
Very, very delicate. Yeah.
Take, take phones away from everyone.
They'll start bloody thinking differently.
It's like you're grounded here. You lost your phone for a week.
Bit of parenting there, right? What do we think of the deal?
There's plenty of varying opinions going around.
There are mate, there there are quite a few different opinions.
I mean, like anecdotally, I'm not sure about you guys have
probably heard a few more negative comments than I have
positive. I mean I.
I I heard more negative this morning.
They've become more positive through the day, people.
Have like digested. Yeah, they're like, yeah, maybe,
yeah. I mean, what what I'd kind of
say is first of all, you can't slag them for being pro
cyclical. So I think it's it's pretty
awesome and it's pretty rare as well that we talk about counter
cyclical deals. So that's a pretty awesome thing
and definitely to all the. People the polar opposite of
Extrada buying Jubilee and the nickel market crashing a week
later. Polar opposite, unfortunately.
Is vagina buying azur? Again through yeah.
And I mean that there are people, you know, still slagging
them about the timing. And I just kind of, you know, go
back to those people and say nobody knows when when lithium's
going to turn around. People were saying it's going to
be up, you know, in at least, you know, over 1500 for years
and years and years to come. And now people saying it's going
to be below 5 or 600 or whatever, 700 for the rest of
the decade as well. So, you know, you take all these
things with a grain of salt because it's super, super hard
to predict where commodity prices are going, but they're
roundabout in in the right sort of ballpark of doing a deal at a
time when the commodity price is down over 90%.
Remember when it remember when it shit itself at the start of
the year, JD and like talking to the talking to everyone on the
desk and everything. The consensus was it it could be
6 to 18 months before it's sort of all stabilises and
inventories drop and we might say something again and we're
effectively only six and a bit months into that.
That's right since it was the highest.
So like, it's still a. Bit to go.
Still a bit to go. Could it could could turn around
soon, could be still more to go. But as I said, it's fucking
significantly. These equities are significantly
cheaper than they were frigging 6 to 9 months ago.
Yeah. Yeah, one of the what?
Sorry, I was just going to say one thing to add to your point
earlier, JD, is I think people forget that, you know, Pilbara
aren't doing some sort of merger of vehicles here where they're
diluting, you know, a shit tonne of their capital to get this
asset. It's barely 7% of the enlarged
group, right? And it's an, you know, it's a
call option on when things do get better.
It adds what? What was it, something like 30%
to their production profile. Potentially 50%.
Or potentially. 50 right? Right.
So I, you know, if I'm an investor, which I am, I'd rather
them do a deal now and have the call option and exercise that
when they're ready, the market's ready, etcetera, rather than buy
something at the top of the market at, you know, something
equivalent to their market cap. And then, oh, then the lithium
price, you know, crumbles in this set.
And the other side, obviously it's not as as simple as that,
but that's, that's just one view purely from a a, a call option
or shares on issue dilution perspective.
And look, if you're a Latin shareholder, like you wouldn't
think so. This game's going to go.
If it goes through, it'll go through by late November, early
December. Like if you're holding Latin
shares at bloody in the low teens, like, would you expect
the lithium market to recover 55% by November, December?
Probably a bit of a bloody bet. I think Friggin, you know,
right, things are going possibly, not likely could
happen, but you'd be, you'd be taking the Pilbara Piper right
now and that gives the funding solution to develop Salinas.
So you're not like there's no, no big debt, no big debt, no big
cap raise needed. You're getting a 55% premium,
you're not getting diluted anymore.
And yeah, so it's, I think it's a good deal for the Latin
shareholders at the time of the market right now.
I think, I think you're spot on with with I think 20 million in
cash when I last looked from the the latest quarterly, you know,
you could you sure as bet before the end of the year, they would
have been diluting again back on on Pilbara to to round out the
thoughts on the deal there. One of the knocks that you know,
is pretty genuine is that they're obviously now no longer
a pureplay WA producer. They're exposed to a different
part of the world, assuming the deal goes through.
And maybe that does cost them a bit of their premium valuation.
People mark it down slightly because it's Brazil.
You know, there's been a few companies that have gone over
there and they've struggled a bit.
It's not everyone's kind of cup of tea.
So that that one does hold a bit of weight to it.
And interesting to hear on the call that Dale was not really
eager to talk down any further inorganic growth.
You know, he wasn't out and out saying, no, we're not doing any
more M&A. So it was just interesting the
the wording on that, on that front.
Yeah, I think I think it's the end of because it's early.
So as you said, they're not really, it's not like they're
going freaking balls deep into it right now, right where bloody
we're going to start building, we're going to start doing this
because obviously when that happens, like with the different
time zone, like it's you're not, you need extra teams.
It's a lot of extra, lot of extra work to like start working
in two jurisdictions. But I don't think they're going
to be pulling the trigger too quickly.
It doesn't sound like they'll do can do much for two years, to be
honest, in terms of progressing it towards being built until
they are confident of a of a price recovery.
So. Yeah.
Like like we said before the call it, it was initially
flagged to to be producing by 2026.
That's just not going to happen. That was also kind of factored
into brokers models that this would kind of come online.
So, so you know, one other way of looking at it is that there's
sort of supply coming out of the market or expected supply coming
out of the market. They were very firm in saying
that they're going to bring this one online when the time is
right, when the market can absorb the tonnes that they're
going to produce. And yeah, you're going to get
people marking down the the value of this in the portfolio
of, you know, projects and assets that Pilbara have.
That was going to be the case if they took on any undeveloped
deal. Yes, there's going to be a fair
bit of CapEx that needs to be spent down the road, but at
least that's in the hands of Pilbara now, right?
They can hopefully get the permitting done much sooner than
they would in other jurisdictions and they can
choose when they can go forward with it as opposed to being
handcuffed until 28/20, 9:30 because of whoever Maddie, like,
like you kind of say, whether that's the the government or
other sort of shackles that you have in getting the project
online. And it's been given and it's
been given to them resource ready like a shit load of
drillings being put into this, hence why the measured and
indicated level of the resource. Like probably too late to now
because it's been so much drilling done a drill like a
drill for equity arrangement with K drill, but probably could
have saved a bit of capital previously if they did go down
that road. But doesn't really matter now
because they're getting bored anyway.
So don't Jay. So it doesn't mean any other
mining companies out there in the gold fields can't like get
in early now and give old Drew Barbie a call to maybe talk
about, you know, the exploration drill and maybe drill for equity
AJD. Hang on mate, these guys are
going to have to do a bit more. You know, I mean, there's plenty
of companies out there, but you want to turn this all into into
a reserve one day caterer is the the team you want.
Well. And look, because it's a pretty
simple process, like you, you know, drove his numbers in the
show night. You give him a ring, he'll pop
down, come have a couple of pints, talk some drilling, talk
opportunities. Before you know you'll have a
mill mineral resource filled with RC and diamond holes, but
he of the highest standard, all on the back of having a point
with Droba. And a great mate.
Just a mate, he's a friend for life that follow.
That's right JD, what about Sigma?
So we talked about Sigma, the, I guess you'd say the OG lithium
producer in Brazil. Yeah, Sigma is an interesting
right, because they've been kind of shopping themselves with a,
with a for sale sign hanging out the front for a while.
It was, you know, you know, very explicit in, in how they were
kind of promoting it for a while.
It hasn't happened yet. Obviously the the stocks come
off quite a bit like it has with every other lithium stock out
there. But I mean, you, you took a dive
into what they're actually churning out at Sigma there.
Why don't you run through that and then we can kind of cover if
if there is something down the track with projects tying up
together? Yeah, like that and that's I
guess the comment going around is like right, is this a bit of
a stepping stone to a bit of further consolidation in Brazil?
Like look Sigma, they're looking to expand or said they're about
two 50,000 tonne per annum at the moment or 270.
I think it was looking to expand for phase two and throw it up to
766,000 tonne of spod per annum. So like, yeah, so and then you
got Selena's PEI forecasts like, you know, 4 to 500,000 tonne of
spods. So combine that one day with
Sigma, like there's over a potentially over a million tonne
of spod coming out of those two projects in Brazil, in addition
to Bill Gangora potentially expanding to 2,000,000 tonne in
the probably the far future beyond the the P-1000 level.
So like that's the, that would be the biggest fucking spot
producer in the world. That's like shit, like if all
that piece together, if that's like the long term plan, it's
that's becoming yeah, it's that's whether they're doing
this to like think, right. Either way, either we do
something now so we don't get bought by Rio or something.
We have to get bigger to make ourselves bigger and more
defensible. Yeah, I mean it, it's a super
interesting point you raised Maddie, the the idea of
expanding pill Gangura and whether that is actually what
they should have prioritised. I'm sure that's what a few
people are asking at the moment. So obviously they chucked out
the study for P2000 not too long ago that a CapEx of 1.2 billion
as we kind of ran through there was hundreds of millions of
dollars that were not included in that 1.2 billion.
So it was, you know, very capital intensive, obviously
adding a lot of a lot of tonnes, but it didn't receive the
warmest reception from the market at time just sheerly
because of that price tag and because of the fact that they
were talking about expanding again in an oversupplied market.
Now you have to think they've obviously compared to the the
two here. And if you, if you look at it
kind of crudely, we're talking about half a billion Aussie to
buy Latin add in, call it another half a billion in CapEx,
half cash, half paper and you're potentially getting 500,000
tonnes per annum at 5.2% down the track, You know, all up a
billion. It it does on, on those kind of
metrics, again, very, very kind of rough and timelines are a bit
different and all these sorts of things, but one does look a bit
more appealing than the other. Yeah.
And this is probably like the, the smaller bite that they've
taken here, I think was probably the lowest risk option for them.
So the market didn't burn them for so called bad M&A.
Like it's not I I don't think you can never call counter
cyclical M&A, bad M&A. Bad M&A is the jubilee example
that we gave before like buying something at the top of the
market like, but you know, that's what the you know, the
the high short interest was in place likely for you know, the
natural lithium hedge, but also the potential they were going to
do a deal and they have but it's not I just said six and a bit
percent shares on issue. It's not fucking.
Yeah, it wasn't. It wasn't a sweep at Arcadian or
something. No, in saying that it was, I
think people were still sort of surprised, like, oh, Latin, like
they're thinking, oh, but why not a, you know, a payment or or
something like that. But I mean, we'll probably go
through that in a bit more detail now as far as, you know,
even like a line town or Wildcat or something, but which are
bigger. But you know, each of them have
got their own sort of things to to look at as well, which, you
know, on paper might look more interesting.
But as far as ability to execute is a bit of a different story.
Well, like Wildcats probably you got, you know, I mean Rose
sitting there with 20%. So that's just difficulty
straight away. Longtown, you got Gina sitting
there, so that's difficulty. Paymate.
You got Trudeau sitting there. Oh.
Big truths. Well, yeah, paymates the that's
the interesting one because everyone's oh, Pilbara should
buy Paymetal Pilbridge should do this site, buddy.
But if you look at well, that's why I'm up together Latin verse
payment payments market caps currently sits a bit below 700
mil Aussie was frigging 2 1/2 billion.
So that's how much that one's come off so similar premium to
this. That's like a what, one point
one $1.2 billion deal probably if you look at the ore bodies,
probably a lot more lithium at Shaka Chewy Wana.
Is that how you bloody pronounce it?
You. Gave it a crack, Matty.
That's the main thing, Shaka. Chewy Wana and and a lot thicker
like you'd you'd take the ore body over the Latin one.
But as you said, look at Sigma's timeline DFS to commercial
production four years. So getting, getting a bit of a
foothold in Brazil, which is just is, is such a low lower
barrier to entry to get a project permitted and built
compared to Quebec. That's just unfortunately how it
is. And for the, for what they're
going to spend on it and the amount of spot to come out of
Salinas, if, if it's, if it's delayed a bit and it's not, it's
not going to be that hugely impactful on Pilgrim Minerals.
I don't, I don't think like 4 or 5004 or 500,000 tonne.
So it's not going well. And it's like 100,000 tonne
less. They're already going to be
producing a million now to pill Gangora.
So it's not like a massive material bloody impact if it
doesn't ramp up. So it's just like combining all
that. It's such a lower a lower risk
option and but then gives them the opportunity to potentially
inorganically grow with Sigma as well.
And I think that's just the bet they're making.
They've they're betting on Brazil versus Quebec.
Yeah, I think that's a that's a good analysis to to kind of make
those, those permitting timelines just really, really
stand out. I don't and who knows if payment
would have actually done a deal with them at at at this stage.
So look ex Pilgrim minerals Ken Brisden he's he's just moved
over to Quebec because he came on as payment top dog start of
the year. So if you look at his actual
bloody, you know, if I'm running a bloody mining company, I'm
thinking about right, how do I make money out of this?
But it's pretty, pretty bloody self set.
That's yeah, that's what I'll be doing.
So a. Couple opies to reprice.
If there's a change of control he pockets 2 years salary so
that's about a mil plus another up to a mil for the short term
incentive bonus. So two years worth.
So you know to like you wouldn't sneeze at 2,000,000.
But his real money is in his options.
So he's got 450,000 Opies at 9 bucks 78.
So they're well out of the money.
Well out of the money, their share price is 4 bucks 43 and
then there's another 450,000. I think they're priced about
seven. It was based on the price of
when he came in. So I think they're about 7
bucks. So even a 60% odd premium at
today's payment price on top of what it is like they might be
just in the money, but he wouldn't make much out of it.
So his, his incentive is to wait for a lithium turn around and
probably in the meantime keep drilling progress, the bloody
traditional owner relationships and the permitting and and all
that sort of things. Unless there's a freaking turn
around and a huge offer that comes their way.
So I couldn't, I couldn't say. I'm doing a deal with Pilbara at
the moment anyway. So they might have asked and he
said no. Well, good mate, cheers.
Yeah, I, I think you spot on in in your comments there, Maddie.
When you when you compare all the options out there, taking in
everything into account, it kind of makes a lot more sense that
Latin's the one they went for. Obviously it was unexpected to
to me and a few others though. What do you what do you think
about all script JD when they got shit load of cash there
already? It just makes sense.
I think look at the relative outperformance with Pilbara and
every other company out there it, it just makes perfect sense.
The the cash is precious. When you're in a cyclical market
and you're in a downturn, you don't want to waste that.
So I think that's very much the the right decision.
Yeah. And like just cause Pilbara
share price down as you said relatively it is done a lot
better than everyone else. So you could say technically
their script is still overvalued in a lithium market.
So yeah, get it out. It's all relative.
All, all relative bloody. I think that's it.
I think we've covered. Bloody just, that's everything
you need to know, I reckon. There were a few other comments,
you know on on the call and in the presentations and stuff
about sort of diversifying themselves geographically, being
able to sell into other markets, you know, perhaps less mature
markets in in Europe and in the US.
That's a bit of a tweaking of the style.
You know, obviously they've they've got off take that goes
to Asia right now that all changes.
Yeah, I think that that's kind of interesting.
But I think we've we've covered most of the kind of key details
behind the deal there. Yeah, good stuff, Good stuff.
I'll I like it. I like it.
Go to Africa now. Yeah, finally.
Like we've always been saying fuck when, when everything's
cheap, when's people going to do deals?
And it's happening. Pilbara have had frigging cash
for ages, even though they haven't used any of it for this.
But I reckon it's like being a pretty disciplined approach.
So yeah. Yeah, interesting to see the
market. Goes to 200 bucks a tonne but.
For now. For now, it does.
Not go the mining industry. They're all buggered anyway if
that happens. Mate.
They might as well go out swinging, yeah?
Exactly right, JC, Onto the peas.
Onto the Peas, Perseus and predictive.
So we saw aftermarket yesterday. Perseus made a strategic
investment. Let's put the inverted commas
around that, our quotation marks rather in a predictive
discovery. Apparently you know it already.
Was so word on the word on the decline actually, actually and I
think this is I don't know if he's knew this.
So tell us what what sort of sparked this investment was that
I think Perseus got wind that MMS were being looked at to go
actually do the mining services contract in Guinea for
predicting? Heading to Guinea?
Yeah, so they've, they've thought, fuck, we better pounce
on this before this thing runs away, 'cause mate, once the desk
gets rolling, like, like she can just go.
You know the power of the desk. Oh.
Mate, the algos just start bloody the things just it's like
a tornado. So mate, 'cause it's probably on
the back of the what MMS have done for Black Cat at that miree
project. Like have a look at this first.
Or delivered two months ahead of schedule.
Look at the fucking dirt flying into those trucks.
Geez, you don't see that often. It's normally, you know, 10
months behind set schedule. No, if all the bloody analysts
listening like mate, you Chuck that in your model, pull the
first production forward two months in your cash flow time
value of money that is worth millions in the future, Chuck it
like the discount rate like freaking unbelievable.
So pretty much if you want to, if you want to get your first or
at least two months ahead of schedule like MMS are the time
to do it. So MMS and look at this and look
and it's materially converted into a investment in predictive
by Perseus. So there.
You go. Are you going, are you going to
go into the first thing we saw about this Perseus predictive
thing? I'm going to say I'm going to
save that fun fact for right at the end.
That fun fact the the one on the iris screen?
Oh. Oh no, that one's, that one's
coming very, very soon. Yeah, that's in.
So I'll look. Forward to that one.
So first, so first let's let's set the scene right.
So for those who don't know Perseus, there are roughly 3 1/2
billion market cap Aussie listed African gold producer.
They produce over 500,000 oz a year between three mines, Edican
in Ghana, yeah, Oray in Cote d'Ivoire and Sissingwe in Cote
d'Ivoire as well. So here's a map of where they
all are. They also have the Myer Sandgold
project, which is previously known as Block 14 in Sudan when
they acquired Orca Gold back in 2022.
Unfortunately, there was a, you know, big outbreak of
hostilities in Sudan last year, which has been a pretty big set
back for the project there. So Perseus have sort of
deferred. ID until the situation sort of
settles down there. So they're just at the moment
it's a very low level drilling and study sort of activities
there. More recently though, they've
been in the press for acquiring O Corp for about USA 150 million
bucks and they have the Nianzaga asset in Tanzania and they did
that deal earlier this year and that was a bit of a competitive
process. Oh, the Battle of Nianzaga.
The Battle of Nianzaga. Silver Corp.
Yeah. So good times.
So that's got a 2.6 million oz, all reserves, around 2 grammes,
all the key licences are granted.
They did ADFS of a couple years ago showing a production profile
of of about 234,000 oz per annum over 10 years.
That's a bit of open bit and underground and at the time at
this mind you this is at a a gold price of US 1750 an ounce.
It had a post tax MPV five of US 618,000,000 and a CapEx of US
474,000,000. Now just pop that in the back of
your mind for for for later. Yeah, so.
Bit over one to one. Yeah, bit over one to one, which
again for for single asset companies and you know if your
market caps a lot less than the CapEx can create a bit of
difficulty. They're trying to get funding.
I can see you're building up a narrative.
I'm building up the narrative. We're going on a journey,
Matthew. So there's an updated
feasibility study being prepared by now.
The Perseus team who owned Nanzaga expected later this
year, doing a lot more drilling, feed studies, all of that.
FID is expected at the end of the year and targeting first
gold in early 2027. There's also the CMA
Underground. They've got a Yayari, which is a
key growth project for them. They're starting a portal sort
of mid next year with first production anticipated mid 2026.
First first ever underground mining coat for that one is that
that was from our episode the other week.
They have to, like Perseus Help and Cote d'Ivoire developed the
regulatory regulatory framework around Underground Morning
'cause it's never been done good.
On you. Good on your Perseus.
Go Perseus. Go Australia.
Go Cote d'Ivoire. Go West Africa.
So and stepping back on more the, the, the corporate level,
Percy's made almost US $500 million in cash flow in the last
financial year. And they've got a history of
achieving or exceeding guidance since 2020.
So the last four years and they've got US 587 million in
cash and bullying and no debt. And I mean, look, look at this
graph here, right? This is shows their sort of
production profile over the last four years and their realised
gold price and all the sustaining and that margin
between the gold price and all the sustaining has just
continued to to grow in. You know, we know, we all know,
we've talked about it quite extensively, the cost inflation
environment we've been in recently.
And now look, it has ticked up a little bit, but you know,
relative to the gold price that's super, super impressive.
So now let's move on to predictive.
They're about 1/2 a billion market cap company listed on
ASICS as well and they're a W African gold developer and their
main asset is the bank and gold project in Guinea.
So they've got 85% of that and Guinea, you've got the balance
of that asset. So they actually put out a
maiden mineral resource on that only three years ago of 3.65
million oz. Today that resource stands out
just sharp, 5.4 million ounces of which 77 percents indicated.
And they also put a a maiden or reserve out earlier this year as
well of just over 3 million oz mostly open pit, but some
underground as well. They put the PFS out on bank an
earlier this year in April, which outlined a 12 year my
life, almost 270,000 oz a year at 1.8 grammes per tonne per of
gold. To give some context, this is
about 30,000 ounces more than Nanzaga, which Percy has just
acquired, and 50,000 oz per annum more than Wolf's Kiaka,
which is currently in construction and development.
So this PFS showed it of an MPV 5 which I hate in MPV 5, but
let's just roll with it in West Africa.
In West Africa in. Guinea, West Africa in a high
interest rate environment. Just anyway, I'll just get too
upset you and that's that and that's at spot you. 2300 US gold
price is US 1.4 billion CapEx of US $456,000,000 and that's for a
five and a half million tonne per annum plant.
Now they say in their presentation, oh, you know, it's
a really low capital intensity per oz, but I think the better
measure is MPV to CapEx ratio. I'm very much a firm believer
it's always margin over oz. Doesn't matter how much you're
doing, as long as you're making money off them, that's all
people care about. Unless you'd be HP and Rio.
They don't. They they love they love 10%
IRS. Oh, that's stunning.
So if you do do an MPV CapEx ratio, this is mind you at spot,
it's around a three times ratio. So 456,000,000 US CapEx is
currently a fair bit more than the predictive market cap.
So again, this is a little bit analogous to all Corp Nans Argo
when they put their study out a couple of years ago.
Obviously there's there's still a lot more work to do on that to
optimise it, convert more of that inventory from resource
into reserve, leveraging some some of the grid power in Guinea
which they reckon could save another US 100 bucks an ounce on
their all. Sustaining what's the timeline
they have on, you know, the next three or four steps?
Yeah, so. The the timeline is second half
of this year. They're expecting their sort of
approvals of their exploitation permit, which was essentially
like a mining permit, then ADFS sort of the year after
construction in sort of 27 and then production in 28.
But arguably the most important thing for Predictive now is
securing this exploitation or mining permit given the assets
location in what's called a peripheral zone of the Upper
Nigeria National Park. So have a look at this map here.
So it's like it's a real grey area job, isn't it?
It's in. It's right on this fringe.
Literally right on the fringe, right?
Just makes it bloody. It'll be just annoying.
Yeah. So I mean look it's you can see
in the top right hand corner there where North East bank and
and bank and central are. So they're on that right sort of
peripheral area there. So Predictive actually put a bit
of a detailed announcement out on this back in 2021, but
essentially that peripheral zone mining of mineral deposits is
not permit, not permitted at this stage.
However, there are precedence in Guinea for mining permits to be
granted in environmentally sensitive areas.
The submission of the PFS early this year and they also
submitted their what's called an environmental and social impact
assessment to the Guinea government is a really important
part of securing this permit, which as we sort of said
earlier, we're anticipating sometime in the second half of
this year. Yeah, right.
So they're they're obviously not taking a full swing at them, but
they want to be in the game. They got their foot on the
throat now. 100% So now if we're taking that context into what
was what was announced the other day.
So Perseus appeared to have taken a bit of a leaf out of the
Remelius playbook with a 13.8% strategic investment in
predictive. So they acquired about 325
million shares at $0.21 per share from JB Boynton and other
entities linked to the investor and the driller, roughly about a
$68 million Australian outlay for Perseus.
Persis also have an additional almost 3 1/2 percent economic
interest or about 81,000,000 shares in predictive by way of
cash settled equity swaps, which brings their sort of total
interest, if you want to call it to just over 17% if you include
the swaps. I've got a question.
Yes, what the fuck is a cash settled equity swap JC?
I feel like this is that moment in the Big Short where they pan
to someone else to explain a really complicated.
Finance to Where's Margot Robbie?
Where's? Margot Robbie Oh Jay.
So I had to, I actually had to find a friend on this one
because it is it is a bit of a complex 1 to explain simply.
So essentially what it is, is an investment bank, you know, like
a, you know, Citibank or Baron Joey or JP Morgan or whatever,
holds the shares on their own account and has legal title to
these shares on behalf of a client who has a contract with
the bank that to essentially get economic exposure to the shares
without physically holding them. The clients in this case, Percy
will say, hey, he's, you know, IB over here, here's cash, can
you and here's an agreement. I want, you know, so many PDI
shares, the bank holds, acquires them and holds them on the
bank's account. And Percy's has that economic
exposure to those, those PDI shares.
So the voting rights of those shares actually sit with the IB.
But there's typically when I mean saying IB, I'm referring to
investment bank, but typically there's some sort of arrangement
that where the bank would sort of just, you know, abstain from
voting or just vote with whatever the proxy says and and
things like that. So I think, I think it's the way
and I think we talked about it in the Remelius Spartan thing
when they were trying to figure out where all those bloody
shares went. So they can, they can
effectively hold 9.9% of a company without being touted as
a notified to be a substantial shareholder 'cause they can have
4.9 and a bit in their own name and not be as substantial.
Then they can have say 4.9% on swap and say they've effectively
got 10%, but no one knows they're a substantial
shareholder yet. No, that's right.
So it's probably is is that? So Perseus have had a. 3.45%
swap in place prior to this stake.
Yes, that's right. So.
So they've been on the register effectively.
Yeah. So it's, it's, it's a super
common way where you can sort of build a position in a stock a
little bit more on the down low. So covert op, a bit of a COVID
op, and we'll get into that a little bit more later as well.
I think it was funny when you I actually read that.
What is a cash settled equity swap?
What? What the hell is that?
But I just know it as swap. Yeah, they just say, ah, we got
them on swap. Got them on swap.
That's what they say on the desk now.
You're all in on the lingo, Maddie.
Oh I love. It right, So what a so we we saw
something very interesting yesterday afternoon, the
execution of the block trade itself.
So now look, everyone, everyone's all had moments of
stuff and shit up at the office. It always happens where where no
one's gonna be into it. But this was just a classic case
of fat fingers on the keyboard, right?
This is a carton. This is what you define as.
That's a carton. I think it's probably about six
cartoons maybe so not once, but twice if you look, have a look
at this. Let's have a look at the first
screenshot here. What do you say is the problem,
Maddie? OK, so that's that's Perseus.
And so there's, which is trading at $2.48, but then there's been
an attempt to block trade 294,000,000 shares at $0.21.
Yep. And then the sort of further one
later now obviously. And they tried again.
Then they tried 17.8 million at. That didn't work, so they
quickly reversed. Yeah, Yeah.
So they quickly reversed them, thankfully, and then put them in
the right company, which was Perseus acquiring predictive
shares, not Perseus buying Perse.
Yeah, Anyway, predictive buying person.
Oh God, too many pays. So they got.
For him, there it was. A pays.
Probably buggered that person up.
It's just too many. Pays.
It's too many pays. Oh God, that would have been.
Imagine the yelling. 'S Oh, I'd be a bit scared, but
so they got there eventually the the the block trade got executed
and we saw very properly after that the announcement come out
on ASX about the strategic investment.
But Maddie? But if you, if you, if you look
into the weeds there Ali and and I'm sure you did the digging you
can, you can see that there was a bit of action going on going
back a few months now, right? No, that's right.
So this is, we'd seen sort of back in the appendix of the
change of substantial holder notice Percy's had been sort of
buying small parcels of predictive on market since you
know early April this year. But even prior to that, they'd
been building their swap position from as early as
September 23, sort of building that up sort of steadily till
till June of this year to where they've announced it at about 3
1/2 percent. They've got on swap of
predictive as well. So who's who are they buying the
shares of? Tell us about this character.
OK this. Is interesting.
So there's, there's again in the, it's all, all the juicy
stuffs in the appendices, Madam Jade.
So in that appendix, there's, there's three sale agreements in
there. And from what I can tell those
sale agreements in those terms, they're effectively, you know,
replicas of each other as other than the, you know, the sellers
themselves. So the first one, we've got
Jamie Boynton, 59 million shares of Predictive BPM Investments,
28 million shares of Predictive, which Jamie is a sole beneficial
odour of. And then you've got roughly 225
million Predictive shares held by Capital Limited.
Jamie Boynton is the the chair of capital, which is they're a
London listed drilling company around 300, three, 150 million
market cap. He's also a major shareholder
according to the last annual report, about 10% of capital.
And then, as an aside, Jamie is also a substantial holder of
Weir Gold. So Jamie Jamie's got a big
guard. On he's got a bit going on.
So with respect to the capital component of of this sale, he's
recused himself from all dealings with those particular
shares. So the, the, the board's sort of
dealt with that separately, but he for his as far as his
personal shares with in his own name and in BPM, he's
essentially accepted the the same terms as negotiated by
capital for, for those holdings looking at capital actually made
an announcement around the sale of their PDI shares.
There's sort of applying a lot of those proceeds to reduce debt
levels and sort of recycle through the business.
And Predictive is also a drilling client.
Of capital God now this was the next bit was very interesting
that I've never seen before in the sale agreement yeah so.
There's some, there's some interesting terms in there which
I hadn't, I didn't think was super common until it was sort
of pointed out to me. A few other examples, but the
key ones in there is there's a profit share.
So I'm just going to. Clock MMS.
Yeah, like, yeah, just like MMS. So I'm going to, I'm going to
group the three, the three sellers into a group here just
for the sake of explaining the term.
So the sellers and Perseus have got a profit share arrangement
whereby they will share 5050 of the profit if Perseus sells any
of the acquired shares in PDR to a third party, whether that's
you know, privately as part of a third party change of control
transaction and this sort of condition or clauses in place
until the 31st of December next year.
There's also a call option. And so if Perseus makes a
takeover offer for Predictive prior to 31st December next year
at a price greater than $0.21, which is what they acquired the
shares for, then the sellers can acquire back those shares they
sold and accept the offer. At the price they sold them for.
I think so, yes. And then or cancel the call
option for a cash for equal to the premium.
So I think the way I understand that is essentially what this
means is these sellers maintain some level of upside optionality
in the event that Perseus or some other third party deal
occurs at higher than $0.21 by the end of next year.
Yeah. So they're like, right, If you
want a strategic position in predictive, the only way you're
getting it is my shares. But it's on these conditions, if
you sell them, I get half the profits.
And if you take them out, take us over, I'm going to get the
same upside as I would if I kept them.
Yeah. Look at you.
Oh boy, knees all over it. I like him.
Take Me Out for dinner, Copper. Yeah, Interesting, right, buddy?
Jesus Christ, you say? I can see why you freaking
needed to go for a walk. You go on date comma.
Go on date. So what's so like Percy?
This has happened pretty quickly after the frigging all Corp
transaction. No, that's right.
And, you know, as far as what it means for Perseus, you know, if
they wanted to go the full way, I mean, you know, they've
they've they've said actually what we should have sort of
flagged early as well that there's no, you know, subject to
the whole usual tease. And there's no current intention
to, you know, make a takeover offer for predictive.
They're not currently in discussions with the predictive
all the rest of it. But should they want to go ahead
and do that? I mean bank hand sort of fits
perfectly into that sort of. Percy's targeted portfolio of,
you know, a 200,000 oz plus producer high margin asset in
Africa, as we sort of touched on at the start, you know, Percy's
focus for 25 and 26 would still be that, you know, CMA
underground at Yarra and the construction me in Saga with
first Golden 27. So you know, they've got plenty
to keep them busy, but assuming you know, they did do a deal
with Predictive, you can envisage, you know, maybe a 28
or 29 sort of sort of first gold for bank can and you know a
production profile, you know, approaching 750,000 ounces.
I think it's, it's like it's first in, first in the door at
the moment. Like I think there's a bit
happening now. Everyone's like, right,
Companies are thinking everything's cheap enough to
start getting a bit up and now look at what we talked about
today. No. 100% it's time in the
market. JC it's time and fired up.
And I mean, I think as far as you know, why they've structured
it this way and you know, perhaps they've learnt some
lessons about the sort of the silver court back and forth for
all court, you know, so sort of let's calling it doing a
Remelius, locking in a stake now, locking in the optionality
now. There's absolutely no as we've
just said, they've got plenty going on in the next few years.
So there's no need to rush to act now.
They can take over predictive if they want later when they're
ready or if someone else bids, they can make their life
difficult to and or you know, sell into their deal, outbid
them whole raft of options. It gives them sort of
approaching it in this way and in this structure as well.
What about for predictive? Do you think it's positive or
negative? I think it's very positive.
I mean, it's just sort of, I mean, the whole Percy's
predictive thing is, is not awfully new.
You know, people sort of pitch that idea multiple times.
But I sort of made that, you know, a bit of a more, you know,
a bit more of reality now. I think it's honestly a matter
of when, not if for a predictive takeover.
Whether it is, you know, Perseus, you know is logical, it
could be someone else. I think, I think this does the
only negative is that it might be a disincent.
Disincentive is that a word? Disincentivize competitive
tension just got, you know, once they once they got the foot on
it, it's like, right, that might just deter other companies
having a crack because they're like, fuck, we're going to waste
all this time. And Percy's have already got the
stake and the the power over it. So that that's that's one is so
they're sort of bit from column a bit from column BA little bit,
as you said, that the logical company take them anyway.
So it's like if they could have sat there with no one going for
them. No, that's right.
That's right. And I think the, the important
thing of you know, or the more probably the interesting thing
of why now, you know, banking is, is still yet to receive it's
exploitation permit, which like we said it's we're expecting
later this year. Persy is taking an interest in
them now sort of probably months before they're expecting.
This permit surely indicates some level of confidence that
that that permitting will be received.
I mean, I imagine Perseus would be pretty sensitive about
geopolitical risk given what happened in Sudan last year.
So they'd definitely be doing the homework.
But still, it's never a guarantee.
Till the till the fat lady sings.
Like they're looking at the work they're doing is like holy snap
and duck shit. It can set them up for the
future if they get this gown and Zaga gown in addition to their
existing operations and diversifying themselves across
Africa. Making the plays now while the
market's getting hated a bit, which is explorers and
developers are getting hated, but that might start changing
soon. So getting in now is probably a
fucking good move. Would you call it another
counter cyclical plane? Oh, that's.
Counter cyclical at a record high gold prices which is
freaking weird. Yeah, what do you reckon, JD?
I think we we might be stretching the counter cyclical
term, but you're dead right. The the junior end or the
smaller end of the market's been beaten up To your question
Maddie on do you think it's positive when you asked Ali
before you know, you asked that question to the market out there
and you can see the answers are pretty emphatic.
Yes. You know 18% up is the share
price reaction today. That's you know, what does that
add another 100 or so million on to the on to the market cap.
You can see people are pretty excited and you know, I, I
thought there'd be a little bump.
I'm, I'm surprised it's up kind of so much given that, like you
say, Ali, you don't know when it's going to happen.
Is it going to be 6 months, 12 months, two years?
But the conversation around Perseus has changed quite a bit
now. I think it was only 6 odd months
ago, Maddie, we were chatting about Perseus and we were like,
shit, you know, this is this unfortunate stuff has played out
in Sudan. What are they going to do for
growth? Now all of a sudden they've got
all court, you know that, that that's all gobbled up, that's
done and they've got their foot on another one.
So the narrative has changed in, you know, a relatively short
amount of time. Bloody good work, JD.
Good work, JC. That was freaking in detail, I
think. Yeah.
Did you get deep? And you're like, shit, Now I'm
like, what have I? Done.
Now I've got to commit no. I've I've got too far.
Oh God. But I did come across actually,
actually one other point I'll just quickly mention before as
far as what it means for PDI. This is again super analogous to
the All Company and Zaga example of, you know, a single asset
developer trying to, you know, spend a lot of CapEx for what
seems to be a great asset, but their market cap, you know, is,
is far less than that that CapEx bill.
So have having that asset in the hands of someone like a Perseus,
you know, who could fund that out of, you know, cash flows or
debt or something, you know, less dilutive than equity is
another positive point. But I'd like to close on a bit
of a fun fact. You beauty.
So this is an extract from a predictive announcement a couple
of months ago. Look who PDI appointed as their
CEOCOO. Does the name look familiar?
All Corp. Who owns All Corp now?
Say it was. Read into that what you may, but
I thought that was a little interesting too.
Good work JC. Good digging, right?
Good work time. Good night JD.
We've got a RIP snort coming out tomorrow.
JD has got hold of ex head of research and a previous director
at Goldman Sachs. Wow, to come on Yeah, and talk
in everything global energy. In the big.
Apples from stateside. That's it.
It's a freaking group. Stored up.
Nah, good stuff and thanks to Bloody Axis Modern Technology
for servicing the whole world with drill aisle survey
instrumentation. Also MMS verify spec power and
technology, DSI underground, Silverstone, CRE insurance,
Greenlands equipment, K drill. It should be called K Drubber.
K Drubber. K Drubber and.
Grab a spark chart while you're at it.
Uduru money miners. Uduru, Uduru guys.
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