1
00:00:00,040 --> 00:00:03,480
Alright, buddy, borders, we're 
going to bloody North America, 

2
00:00:04,360 --> 00:00:07,000
Canada, we've. 
Got 2 fields in North Korea. 

3
00:00:07,160 --> 00:00:09,880
Today, Oh yeah, go go the Maple 
syrup. 

4
00:00:09,880 --> 00:00:12,400
Today, we're on fire. 
That's it. 

5
00:00:12,400 --> 00:00:14,680
I'd pancakes on the weekend too 
it. 

6
00:00:14,680 --> 00:00:16,000
Was. 
I did too. 

7
00:00:16,000 --> 00:00:16,520
There you go. 
Oh. 

8
00:00:17,320 --> 00:00:20,120
Well, there we go. 
Alright, so big deal coming out 

9
00:00:20,120 --> 00:00:24,800
of bloody Newmont divesting one 
of their non core assets to a 

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00:00:24,880 --> 00:00:27,200
company I've never heard of, but
we'll know sheet loads of out of

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00:00:27,200 --> 00:00:31,080
them today after today. 
Ola, Ola Mining Ola, they've got

12
00:00:31,080 --> 00:00:33,240
a bit of a brand reputation out 
in North America. 

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They've got a bit of a 
management premium associated 

14
00:00:35,480 --> 00:00:37,480
with the money. 
They're well, they're they're 

15
00:00:37,480 --> 00:00:40,920
obviously not big enough to buy 
all the new Mons non core 

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00:00:40,920 --> 00:00:42,360
assets. 
They've just bought one of them 

17
00:00:43,240 --> 00:00:45,240
Ahead. 
We've got Spartan met results. 

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00:00:45,480 --> 00:00:49,960
Why not go into a bit of 
metallurgy and Sayona Piedmont? 

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00:00:50,120 --> 00:00:51,600
That's it walking down the 
aisle. 

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00:00:51,600 --> 00:00:55,520
Take it away, boys. 
We'll start with Ola like you 

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00:00:55,520 --> 00:00:59,120
said, Maddie scooping up an 
asset muscle white from Newmont.

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00:00:59,120 --> 00:01:03,440
So up in up in North America 
headline was up to an $850 

23
00:01:03,440 --> 00:01:08,920
million U.S. dollar deal 800 and
few 810 rather being upfront 

24
00:01:08,920 --> 00:01:12,240
with 40 contingents. 
So everyone knows Newmont, but 

25
00:01:12,520 --> 00:01:14,600
why not share a bit of colour on
all? 

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00:01:14,600 --> 00:01:17,880
I think to our North American 
audience, like you say, Trev 

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00:01:17,880 --> 00:01:20,680
might be quite familiar, but 
down under they're a bit of an 

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00:01:20,680 --> 00:01:23,400
unknown entities. 
So they've got a producing 

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00:01:23,400 --> 00:01:28,880
asset, the Camino Rojo mine in 
Mexico and a development asset 

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00:01:28,880 --> 00:01:33,600
in the States, currently just 
producing about 135 oz per 

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00:01:33,600 --> 00:01:36,480
annum. 
Market cap 1.9 billion, actually

32
00:01:36,480 --> 00:01:39,720
bounced a bit on this deal. 
So the market kind of liked it. 

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And like you say again, Trev, 
supported by the market, bit of 

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00:01:42,680 --> 00:01:45,720
a premium in terms of 
shareholders, peerless on about 

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00:01:45,720 --> 00:01:49,880
10% of the company personally. 
Then you've got Fairfax, not the

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00:01:50,120 --> 00:01:52,400
Aussie Media Group. 
Thank you for answering my 

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00:01:52,400 --> 00:01:55,160
question I was about to ask. 
You also got Newmont as big 

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shareholders and Agnico and then
there's they're all pretty 

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00:01:58,560 --> 00:02:00,720
chunky shareholders and then 
there's a sort of trailing list 

40
00:02:00,720 --> 00:02:03,480
of single digit percentage. 
That's a that's an attractive 

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00:02:03,480 --> 00:02:06,360
list of shareholders to have, 
which you imagine kind of, yeah,

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00:02:06,360 --> 00:02:08,840
it gives them a bit of firepower
when, when it comes to wanting 

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00:02:08,840 --> 00:02:10,639
to do a deal. 
Not that they raised equity 

44
00:02:10,639 --> 00:02:13,240
here, but yeah, nonetheless. 
Definitely mate and the last fun

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00:02:13,240 --> 00:02:18,280
fact about Orla is that their 
non exec chair Chuck jeans. 

46
00:02:18,360 --> 00:02:23,480
He ran Goldcorp from 2009 to 
2016 so he would be quite 

47
00:02:23,480 --> 00:02:24,640
familiar. 
That's a period in which 

48
00:02:24,640 --> 00:02:27,520
Goldcorp was the owners of the 
Muscle White mine. 

49
00:02:27,680 --> 00:02:30,600
So, so tell us about the muscle 
white mine. 

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00:02:30,600 --> 00:02:33,840
What are the metrics? 
The metrics, so Canadian 

51
00:02:33,840 --> 00:02:38,720
Underground goldmine 6 point 2-3
grammes per tonne reserve grade.

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00:02:39,160 --> 00:02:42,600
The acquisition is based upon a 
reserve life that runs out to 

53
00:02:42,600 --> 00:02:44,840
2030. 
They're talking about an all in 

54
00:02:44,840 --> 00:02:47,960
sustaining cost of a bit under 
US 1300. 

55
00:02:47,960 --> 00:02:53,120
So 1270 is the the price that 
sort of quote there 200,000 oz 

56
00:02:53,560 --> 00:02:55,920
per annum. 
In terms of the the processing 

57
00:02:55,920 --> 00:02:58,960
plant, maybe 1.5 million tonnes 
per annum, although it currently

58
00:02:58,960 --> 00:03:03,240
only runs at 1,000,000 tonnes 
per annum and decent recoveries,

59
00:03:03,240 --> 00:03:05,760
not unexpected given the, the 
high grade we're talking about 

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00:03:05,760 --> 00:03:08,560
96% historically is what they 
talk up. 

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00:03:09,360 --> 00:03:13,360
It's also a FIFO operated mine, 
which is interesting in lot of 

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00:03:13,360 --> 00:03:17,800
comments you've made previously 
with regards to mining towns 

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00:03:17,800 --> 00:03:21,080
having sort of somewhat 
different cultures about how 

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00:03:21,080 --> 00:03:24,920
long they want the the mine to 
you know operate for and they 

65
00:03:24,920 --> 00:03:28,320
these sorts of things. 
So it kind of it stands out 

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00:03:28,560 --> 00:03:32,200
culturally as quite a a positive
type operation where you're not 

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00:03:32,320 --> 00:03:35,280
maybe entrenched with unions and
other type of things like that. 

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Are they? 
So is it firefighters in as in 

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00:03:37,360 --> 00:03:41,400
expats or is it firefighter for 
Canada and America? 

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00:03:41,760 --> 00:03:44,920
Canada, Canada and US. 
Yeah, I'd imagine the majority 

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00:03:44,920 --> 00:03:46,640
just fly from other Canadian 
cities. 

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00:03:46,640 --> 00:03:48,880
Yeah, I did. 
I I I was watching one of the 

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00:03:48,880 --> 00:03:53,720
videos regarding the firefighter
on the camp aspect to Australia.

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00:03:54,320 --> 00:03:56,480
We're in the process of doing a 
camp upgrade right now. 

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00:03:56,480 --> 00:03:59,360
Sounds like that camp upgrade 
needs to be a bloody grounded 

76
00:03:59,360 --> 00:04:02,080
camp upgrade, boys. 
The only way to go. 

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00:04:02,440 --> 00:04:04,920
He's a no brainer right If 
you've got an old shit ass camp 

78
00:04:05,040 --> 00:04:07,760
like I don't know if muscle ward
have got mate if grounded do the

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00:04:07,760 --> 00:04:09,800
upgrade. 
It's then considered a grounded 

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00:04:09,800 --> 00:04:12,920
camp. 
One of the best camps beyond a 

81
00:04:12,920 --> 00:04:15,640
Newmont standard. 
You can't acquire, you know, an 

82
00:04:15,640 --> 00:04:17,880
asset from a major like new 
Modern. 

83
00:04:17,880 --> 00:04:19,720
They're not not give it a Tier 1
camp. 

84
00:04:19,720 --> 00:04:21,560
No, mate, you got to put a bit 
of love into it. 

85
00:04:21,560 --> 00:04:24,760
You got to put a bit of a 
Sicilian feel into the into the 

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00:04:24,760 --> 00:04:27,680
camp. 
And look, Paul Natali, if you're

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00:04:27,680 --> 00:04:30,440
listening mate, I've done a bit 
of digging for you in terms of 

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00:04:30,880 --> 00:04:33,800
Ontario builder recruitment if 
you do get. 

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00:04:33,800 --> 00:04:38,080
This gig, what did you? 
Find as of 2021 Canadian census,

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00:04:38,720 --> 00:04:42,960
approximately 905,000 
individuals in Ontario reported 

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00:04:42,960 --> 00:04:46,200
Italian ancestry. 
So about 6 1/2 percent of the 

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00:04:46,200 --> 00:04:48,600
population. 
And then of that there is 

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00:04:48,600 --> 00:04:52,000
estimated 10% of them are from 
the southern regions of Italy, 

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00:04:52,240 --> 00:04:56,440
notably Sicily. 
So there is potentially 90,000 

95
00:04:56,440 --> 00:05:00,400
Sicilians in Ontario right now. 
The grounded construction group 

96
00:05:00,400 --> 00:05:02,600
could pick from to help build 
this camp. 

97
00:05:02,600 --> 00:05:05,440
So anyone in Ontario that's just
finished their building 

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00:05:05,440 --> 00:05:07,920
apprenticeship, give Paul 
Natalie an email. 

99
00:05:07,920 --> 00:05:10,200
He's in the show. 
It'll give you a gig straight 

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00:05:10,200 --> 00:05:12,120
away. 
Grounded to go on International.

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00:05:12,120 --> 00:05:14,720
Grounded straight, Ontario. 
Get on board. 

102
00:05:14,800 --> 00:05:17,720
Can't wait, right? 
So what about the ore body, JD? 

103
00:05:18,040 --> 00:05:21,000
So the ore is mined from a 
couple main sources. 

104
00:05:21,280 --> 00:05:24,880
The ore the the mine rather is, 
is pretty old now 28 years. 

105
00:05:24,880 --> 00:05:27,120
So it's been going a while. 
Obviously you're getting a bit 

106
00:05:27,120 --> 00:05:30,520
deeper and deeper, like a lot of
these in Canada sits under a 

107
00:05:30,520 --> 00:05:36,560
lake, uses a conveyor to get the
order surface, which is the the 

108
00:05:36,600 --> 00:05:40,400
the cause of a fire in 2019. 
That sort of happened early 

109
00:05:40,400 --> 00:05:46,240
2019, which was the same year 
that Newmont took over Gold 

110
00:05:46,240 --> 00:05:48,880
Corp. 
That was a sort of $10 billion 

111
00:05:48,880 --> 00:05:52,160
script deal. 
So came into the the fold with 

112
00:05:52,240 --> 00:05:55,280
Newmont, but the the mine was 
out of action for about a year 

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00:05:55,760 --> 00:05:59,520
and then it was actually 
disrupted quite a bit in 2020 

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00:05:59,840 --> 00:06:01,880
due to COVID restrictions as 
well. 

115
00:06:01,880 --> 00:06:06,880
So yeah, the company talks up 
that they use that time to work 

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00:06:06,880 --> 00:06:09,560
on other improvements, improve 
the infrastructure at the site. 

117
00:06:09,560 --> 00:06:13,480
But yeah, what was out of action
for a little while there, but 

118
00:06:13,600 --> 00:06:17,560
6,000,000 oz been mined here 
over its history, 1.5 million 

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00:06:17,560 --> 00:06:21,760
ounces in reserve. 
So I got a bit to bit to work 

120
00:06:21,760 --> 00:06:23,920
with. 
It's funny when you talk about 

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00:06:23,920 --> 00:06:29,520
the reserves and yeah, yeah, 
look at this one like it's 

122
00:06:29,520 --> 00:06:31,440
actually not that deep. 
Looking at they'll bring up the 

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00:06:31,440 --> 00:06:35,080
cross section, the long section 
of the ore body like it's what 

124
00:06:35,280 --> 00:06:37,160
friggin. 
Not steeply dipping at all. 

125
00:06:37,880 --> 00:06:42,120
What is a bit about 12-13 
hundred, I think. 

126
00:06:42,600 --> 00:06:45,160
Oh, no, sorry, that's, that's 
not a it's only mine down to 

127
00:06:45,160 --> 00:06:47,840
about 1000. 
But you look at that plunge, 

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00:06:47,840 --> 00:06:50,040
that's what we refer to as the 
plunge. 

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00:06:50,200 --> 00:06:54,360
Like it's freaking flat. 
Like if you put it, compare it 

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00:06:54,360 --> 00:06:55,800
to, I'll show you the picture of
Tanamoi. 

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00:06:55,800 --> 00:06:58,800
Like Tanamoi plunges at about 
45°. 

132
00:06:58,800 --> 00:07:03,320
This one plunges at like 30. 
So it presents a massive 

133
00:07:03,320 --> 00:07:08,240
challenge for determining your 
reserves because what happens is

134
00:07:08,240 --> 00:07:11,640
as when your decline gets down 
to a certain point and the the 

135
00:07:11,680 --> 00:07:13,560
all bodies plunging away from 
you. 

136
00:07:13,560 --> 00:07:16,440
I'll try to keep your hands 
close so the camera remains 

137
00:07:16,440 --> 00:07:19,040
focused. 
It's not going in and out when 

138
00:07:19,040 --> 00:07:21,960
it plunges away. 
You can't just fucking drill 

139
00:07:21,960 --> 00:07:25,080
over there and get a good angle 
on the ore body to properly 

140
00:07:25,080 --> 00:07:26,840
define it. 
They're long and they're 

141
00:07:26,840 --> 00:07:29,800
intersecting at a freaking 
shitty angle. 

142
00:07:29,840 --> 00:07:33,040
It's part of the reason it's 
always had a sort of six year, 

143
00:07:33,040 --> 00:07:35,680
seven year, yeah. 
Which is 6-7 years and that's 

144
00:07:35,680 --> 00:07:37,320
probably a function. 
Of course it's plunging. 

145
00:07:37,320 --> 00:07:41,680
So much like the, the, the gold 
or per vertical metre is a lot 

146
00:07:41,920 --> 00:07:45,560
higher, like 'cause it's like 
your body's gone that way 

147
00:07:45,560 --> 00:07:48,640
instead of that way. 
So what, So what they've got, 

148
00:07:48,640 --> 00:07:51,200
what you've got to do with these
cases to prove up your reserves 

149
00:07:51,200 --> 00:07:55,000
is like pretty much put these 
massive fucking ven exploration 

150
00:07:55,000 --> 00:08:00,200
drives out away from where you 
are to then get over the top of 

151
00:08:00,200 --> 00:08:03,000
the ore body down there and get 
a better, a better angle. 

152
00:08:03,240 --> 00:08:05,680
But it's a, it's a lot of 
development, those exploration 

153
00:08:05,680 --> 00:08:08,000
drives, especially once you get 
to a kilometre deep and you got 

154
00:08:08,000 --> 00:08:11,800
the, the, you know, thermal side
of things and the auto 

155
00:08:11,800 --> 00:08:13,080
compression. 
So it's getting hot. 

156
00:08:13,080 --> 00:08:16,880
They're a single head. 
And that's but and it's a lot of

157
00:08:17,320 --> 00:08:23,120
unnecessary capital to explore. 
But then your couple, you can 

158
00:08:23,480 --> 00:08:26,880
kill two birds with one stone in
terms of like another challenge 

159
00:08:26,880 --> 00:08:30,840
with these plunging ore bodies 
is the ventilation. 

160
00:08:31,000 --> 00:08:35,760
So and they do mention it in one
of the causes like maintaining 

161
00:08:35,760 --> 00:08:38,559
the ventilation to death because
one, it's under a like so you 

162
00:08:38,559 --> 00:08:43,159
can't just punch a rise bore up 
through the surface to for your 

163
00:08:43,159 --> 00:08:45,720
return airway system because 
there is water. 

164
00:08:46,840 --> 00:08:50,000
And so you've got to keep 
linking your return airway up. 

165
00:08:50,000 --> 00:08:53,520
But as as the mine gets deeper, 
so you go down the level. 

166
00:08:53,880 --> 00:08:56,720
So you're over here and the 
bottom of your return Airways 

167
00:08:56,720 --> 00:08:59,680
over here. 
You've then got to drive back 

168
00:08:59,680 --> 00:09:02,760
that way to link that return 
airway up. 

169
00:09:02,800 --> 00:09:06,760
So it's a lot of ventilation Dr 
development, but I'm not sure if

170
00:09:06,760 --> 00:09:08,840
they do this. 
But what you what they could do 

171
00:09:09,080 --> 00:09:12,800
is that with those big long 
exploration drives you use, you 

172
00:09:12,800 --> 00:09:16,360
could then once you've finished 
exploring and then you go down 

173
00:09:16,360 --> 00:09:19,040
to the bottom. 
You're then below then you could

174
00:09:19,040 --> 00:09:22,200
punch a rise bore up and use 
that exploration drive as you 

175
00:09:22,200 --> 00:09:25,960
return airway later on. 
So like there, there is options 

176
00:09:25,960 --> 00:09:29,520
to to do that, but it's just a 
lot different to a verdict. 

177
00:09:29,520 --> 00:09:33,080
A dead vertical. 
I remember at Warrunga Agnew, 

178
00:09:34,040 --> 00:09:37,840
which was gold fields like it is
fucking vertical. 

179
00:09:37,920 --> 00:09:40,640
Like it is that day going down 
that decline. 

180
00:09:40,640 --> 00:09:44,240
It is just a spiral and you'd be
driving down there and just like

181
00:09:46,040 --> 00:09:50,880
fucking hundreds and kilometres 
it just it just a dead vertical 

182
00:09:50,880 --> 00:09:52,400
spiral. 
Oh God, it would have been a 

183
00:09:52,400 --> 00:09:54,440
pint. 
You imagine being on the decline

184
00:09:54,440 --> 00:09:57,680
Jambo, you block and I just get 
a fucking straight cut would be 

185
00:09:57,680 --> 00:09:59,880
nice. 
I'd be doing you'd get good at 

186
00:09:59,880 --> 00:10:02,120
doing turns. 
So yeah. 

187
00:10:02,120 --> 00:10:04,840
So I think ventilation keep 
maintaining that ventilation. 

188
00:10:04,840 --> 00:10:10,080
I think they said with the 
conveyor it sounds like it was a

189
00:10:10,080 --> 00:10:15,400
crusher, so there was a hoist. 
There's winds, they call it a 

190
00:10:15,400 --> 00:10:18,360
winds, but that's a hoist. 
So it sounds like there's a 

191
00:10:18,600 --> 00:10:23,840
crusher with a shaft at some 
point that goes up from the 

192
00:10:23,840 --> 00:10:27,440
bottom levels, hoist it up to 
where then the conveyor starts. 

193
00:10:27,440 --> 00:10:29,880
So I think the conveyor is like 
a fixed starting point. 

194
00:10:30,240 --> 00:10:34,360
They crush it underground 
further down up to the conveyor,

195
00:10:34,360 --> 00:10:36,040
which it might be halfway up the
mine or. 

196
00:10:36,040 --> 00:10:37,360
Something I think I saw that in 
old pressure. 

197
00:10:37,360 --> 00:10:39,480
And then it goes up the 
conveyor. 

198
00:10:39,480 --> 00:10:41,720
So I think it sounds like they 
did a lot of work to. 

199
00:10:42,680 --> 00:10:45,800
So then once I go below that, 
they would then track up to the 

200
00:10:45,800 --> 00:10:48,320
crusher, crush it hoisted up to 
the conveyor. 

201
00:10:48,320 --> 00:10:51,960
At least they're not tracking it
out frigging from shit loads 

202
00:10:51,960 --> 00:10:56,800
underground. 
And cause let me get this right 

203
00:10:56,800 --> 00:10:58,120
now. 
Even though even though it's 

204
00:10:58,120 --> 00:11:01,160
plunging, it'd be still the same
vertical distance up one in 

205
00:11:01,160 --> 00:11:03,040
seven. 
Even if it's plunging, it's just

206
00:11:03,040 --> 00:11:07,280
a different direction. 
So yes, it's just the joys of a 

207
00:11:07,280 --> 00:11:09,280
shot. 
But as I said, shallow plunging 

208
00:11:09,280 --> 00:11:13,680
ore bodies, you've got a you 
don't have to do as much 

209
00:11:13,680 --> 00:11:16,840
vertical development to get as 
much level development done 

210
00:11:16,920 --> 00:11:20,280
because you because it's there's
it looks like there's over a 

211
00:11:20,280 --> 00:11:25,320
kilometre or so bloody or more 
of strike of all there. 

212
00:11:25,320 --> 00:11:27,400
So you get a shit load more 
level development done. 

213
00:11:27,400 --> 00:11:30,160
You don't have to go as deep as 
quick, but it's very hard to 

214
00:11:30,160 --> 00:11:33,000
define your body. 
I'll say they are assuming that 

215
00:11:33,000 --> 00:11:34,680
it's just going to keep fucking 
going that way. 

216
00:11:34,680 --> 00:11:38,640
I think Olympic Games the same. 
I think it's like, I reckon it's

217
00:11:38,640 --> 00:11:41,080
like a big friggin shape of a 
saucepan. 

218
00:11:41,080 --> 00:11:43,880
It's just this handle and then 
this big thing and it's just 

219
00:11:43,960 --> 00:11:47,040
flat and just goes for whatever.
I think you're dead, right. 

220
00:11:47,040 --> 00:11:50,400
I think they're poked in a 
couple holes that sort of show 

221
00:11:50,560 --> 00:11:52,440
strike could continue 3 
kilometres. 

222
00:11:52,440 --> 00:11:55,120
But again, it's a sort of cost 
thing of proving that out and 

223
00:11:55,120 --> 00:11:56,880
they'll do that in in time, 
won't they? 

224
00:11:56,920 --> 00:11:58,600
Yeah. 
So don't don't get too deterred 

225
00:11:58,600 --> 00:12:02,760
by reserves with these gold ore 
bodies, especially a bloody 

226
00:12:02,760 --> 00:12:05,160
shallow plunging 1. 
I think that'll tie in perfectly

227
00:12:05,160 --> 00:12:08,480
with a bit of valuation chat 
later on and what what the 

228
00:12:08,480 --> 00:12:11,640
management team is kind of 
thinking with a A6 year reserve 

229
00:12:11,640 --> 00:12:12,920
and how they kind of think about
that. 

230
00:12:13,400 --> 00:12:17,160
Another thing I I watched a 
snippet from a presentation, It 

231
00:12:17,160 --> 00:12:20,360
was done last year and it was 
about muscle white from 

232
00:12:20,520 --> 00:12:22,800
obviously when Newmont owned it 
before today. 

233
00:12:23,920 --> 00:12:26,480
Yeah, it's just, I'll, I'll play
the whole snippet and it's just 

234
00:12:26,480 --> 00:12:30,800
something you can see how 
different underground mining 

235
00:12:31,160 --> 00:12:37,040
methods, culture advancements 
are in North America to what we 

236
00:12:37,040 --> 00:12:38,880
know in Australia. 
I'll play it all for you. 

237
00:12:38,880 --> 00:12:43,080
Let's do it. 
So some of those improvements we

238
00:12:43,080 --> 00:12:45,760
implement the jumbo bolting at 
Muscle White, that's been a big 

239
00:12:45,760 --> 00:12:47,800
transition for us. 
We're in the process right now, 

240
00:12:47,800 --> 00:12:50,000
but we've got we're getting a 
rid of the McLean bolters and 

241
00:12:50,000 --> 00:12:53,640
we're using one tool, the jumbo 
to allow us to drill and bolt 

242
00:12:54,120 --> 00:12:57,080
and advance the mine. 
That's unlocking a lot of 

243
00:12:57,080 --> 00:13:00,040
potential for us and it 
eliminates pieces of equipment 

244
00:13:00,040 --> 00:13:03,040
going in and out of the in and 
out of the headings. 

245
00:13:03,800 --> 00:13:07,680
We moved our blasting, we moved 
blasting to shift change. 

246
00:13:07,680 --> 00:13:10,320
So we were doing a lot of 
blasting on shift, not very 

247
00:13:10,320 --> 00:13:12,560
efficient. 
So we move that to to shift 

248
00:13:12,560 --> 00:13:14,640
change. 
We're much more efficient and 

249
00:13:14,640 --> 00:13:17,800
safer in our blasting processes.
We're not having to move people 

250
00:13:17,800 --> 00:13:20,760
in and out of the operation. 
And then we implemented early 

251
00:13:20,760 --> 00:13:25,080
mine entry. 
We were losing probably 2 1/2 

252
00:13:25,080 --> 00:13:28,920
hours at every shift change. 
And so we implemented longer 

253
00:13:28,920 --> 00:13:32,000
shifts, but we implemented early
mine entry so we could get the 

254
00:13:32,040 --> 00:13:34,760
mine ventilated out faster and 
get people working and get 

255
00:13:34,840 --> 00:13:39,160
people the working face quicker.
On the production side, we 

256
00:13:39,160 --> 00:13:43,880
implemented Tele remote mucking.
So no longer are we using line 

257
00:13:43,880 --> 00:13:47,080
of sight mucking to to extract 
or out of the stoves. 

258
00:13:47,080 --> 00:13:50,920
We're using Tele remote and 
we're looking to advance that to

259
00:13:50,920 --> 00:13:55,480
potentially some automation. 
That now remember this is this 

260
00:13:55,480 --> 00:14:00,440
is the world's biggest gold 
miner, Newmont and this was from

261
00:14:00,600 --> 00:14:03,040
the stuff they were doing from 
2019 onwards. 

262
00:14:03,040 --> 00:14:05,600
So they only just started 
balding and meshing with the 

263
00:14:05,600 --> 00:14:08,560
twin boob jumbo. 
They were using the McClain Bolt

264
00:14:08,560 --> 00:14:12,200
rigs, I think they said McClain 
and I'll assume then a twin boom

265
00:14:12,200 --> 00:14:17,000
jumbo to separately bore with. 
So that's obviously never how 

266
00:14:17,000 --> 00:14:20,760
it's been done in Australia. 
Like it's always just been 

267
00:14:20,760 --> 00:14:23,440
balding and meshing with the 
twin boom jumbo and then that 

268
00:14:23,440 --> 00:14:26,440
bore and you're just getting 
more out of the one machine. 

269
00:14:27,000 --> 00:14:29,480
So they've already just started 
sort of transitioning that in 

270
00:14:29,480 --> 00:14:33,120
the past few years. 
Sounds like they were mid shift 

271
00:14:33,120 --> 00:14:35,480
blasting, which for the 
development. 

272
00:14:35,480 --> 00:14:38,840
So it's and for if that's 
happening and remember you got a

273
00:14:38,840 --> 00:14:41,160
deep spread out mind. 
So it takes ages for people to 

274
00:14:41,160 --> 00:14:45,360
get to work. 
So they'd probably knock off, go

275
00:14:45,360 --> 00:14:47,800
to like a crew broom, they'd 
blast everyone would have a 

276
00:14:47,800 --> 00:14:51,320
feed, play cards and fuck around
mid shift while they blast, wait

277
00:14:51,320 --> 00:14:55,280
for re entries to complete, then
go back to work and then 

278
00:14:55,960 --> 00:14:58,320
probably a few hours later knock
off, go to the surface, do a 

279
00:14:58,320 --> 00:15:01,360
handover on the surface, get the
other shift down, then that mid 

280
00:15:01,360 --> 00:15:04,560
shift blast and it's just a lot 
of time doing nothing. 

281
00:15:04,840 --> 00:15:07,480
So they finally got it to the 
stage where it sounds like the 

282
00:15:07,480 --> 00:15:13,320
end of shift blasting, working 
through the whole shift and 

283
00:15:14,320 --> 00:15:16,440
effectively probably double on 
the time down the hole. 

284
00:15:16,440 --> 00:15:19,480
Because the only the only reason
you would mid shift blast for 

285
00:15:19,480 --> 00:15:22,920
development is if you have 
absolutely minimal headings in a

286
00:15:22,920 --> 00:15:27,480
mine and you've got one jumbo 
effective like and you just need

287
00:15:27,480 --> 00:15:30,160
to fire those heading straight 
away so you can get bogging so 

288
00:15:30,160 --> 00:15:32,240
you can keep the development 
cycle going. 

289
00:15:32,240 --> 00:15:36,160
It's and you need to have a 
sometimes they do it in 

290
00:15:36,160 --> 00:15:39,280
production mines when you've got
you're trying to push an area 

291
00:15:39,280 --> 00:15:41,280
down the bottom. 
You have an independent firing 

292
00:15:41,280 --> 00:15:43,280
zone. 
So you'll have say your 

293
00:15:43,280 --> 00:15:45,760
productions up here. 
Then you go down the decline, 

294
00:15:45,760 --> 00:15:48,720
there'll be A tag board. 
And so to be down that bottom of

295
00:15:48,720 --> 00:15:51,200
the mine where all the 
developments going on, your tag 

296
00:15:51,200 --> 00:15:53,080
on, there's a second tag you put
on. 

297
00:15:53,080 --> 00:15:54,720
You boys don't remember tagging 
on. 

298
00:15:54,920 --> 00:15:56,800
Yeah, mate. 
So you'd have two tags you tag 

299
00:15:56,800 --> 00:15:58,560
on to that. 
And then if they want to fire 

300
00:15:58,560 --> 00:16:01,880
that everyone has to tag off. 
So they can still be doing 

301
00:16:02,000 --> 00:16:03,600
mining the Stopes and everything
up here. 

302
00:16:03,600 --> 00:16:05,760
But then you can independently 
fired down there. 

303
00:16:05,760 --> 00:16:10,360
So you take a couple, but 
they're like mid shift blasting 

304
00:16:10,360 --> 00:16:12,440
is what you do on portal jobs. 
So I like it. 

305
00:16:12,440 --> 00:16:15,080
Spartan, for instance, they're 
punching those 3. 

306
00:16:15,080 --> 00:16:16,920
The expiration declines at the 
moment. 

307
00:16:17,160 --> 00:16:21,400
Soon as that finished charging 
one, they're like, well, we can 

308
00:16:21,800 --> 00:16:24,800
wait till end of shift or we go 
far right now, start bogging and

309
00:16:24,800 --> 00:16:26,960
that's when mid shift. 
So the fact you'd never do it in

310
00:16:26,960 --> 00:16:30,480
a in a big mine unless you've 
got it fully. 

311
00:16:31,560 --> 00:16:32,880
So unless you've got no 
headings. 

312
00:16:32,880 --> 00:16:35,360
So I would imagine a mine this 
big, you would have a, you 

313
00:16:35,360 --> 00:16:39,800
should have a lot of headings 
because otherwise the mine just 

314
00:16:39,800 --> 00:16:41,480
has to stop work. 
So. 

315
00:16:41,480 --> 00:16:44,160
It's like it's these 
productivity kind of losses 

316
00:16:44,160 --> 00:16:46,960
relative to the Australian 
mining way, which was like the 

317
00:16:47,000 --> 00:16:50,560
appeal for like the Northern 
Stars and the the evolutions to 

318
00:16:50,680 --> 00:16:53,920
to to acquire assets over there,
thinking they could just just 

319
00:16:53,920 --> 00:16:57,200
easily kind of replicate the 
methods in Australia over there,

320
00:16:57,200 --> 00:16:58,520
right? 
But it just proved harder. 

321
00:16:58,520 --> 00:17:03,400
Easy to replicate the methods, 
but to workforce to go and tell 

322
00:17:03,800 --> 00:17:07,319
mining culture that, oh, we're 
doing it this way now, we know 

323
00:17:07,319 --> 00:17:10,599
you've been doing it this way 
for 30 years, You're wrong. 

324
00:17:10,960 --> 00:17:15,319
We're right, doesn't that takes 
years and years to transition 

325
00:17:15,319 --> 00:17:19,560
that and delicately to get them 
to come on board with that 

326
00:17:19,560 --> 00:17:23,520
method that they think is oh 
fuck that we do it this way. 

327
00:17:23,520 --> 00:17:26,720
And unions you're dealing with 
in places as well. 

328
00:17:26,720 --> 00:17:31,000
Yeah, yeah. 
And so it's, and it's not that 

329
00:17:31,400 --> 00:17:33,960
when you're on the other side of
the fence, it's like it's very 

330
00:17:33,960 --> 00:17:36,960
hard to acknowledge that, oh 
shit, we are wrong. 

331
00:17:37,000 --> 00:17:40,040
You guys are heaps better at 
this than us. 

332
00:17:40,200 --> 00:17:43,840
It just doesn't work that way. 
So it takes years and years and 

333
00:17:43,840 --> 00:17:45,680
years to get to change that 
culture. 

334
00:17:46,320 --> 00:17:48,160
Another one was like that 
because I was talking about they

335
00:17:48,160 --> 00:17:51,280
were losing 2 1/2 hours every 
shift change. 

336
00:17:51,520 --> 00:17:55,200
So I assume they're firing at 
ender shift 2 probably the 

337
00:17:55,200 --> 00:17:59,000
production stuff. 
And it says though they started 

338
00:17:59,040 --> 00:18:01,760
early mine entry so it sounds 
like they weren't even getting 

339
00:18:01,760 --> 00:18:03,520
lot the re entry crews to go 
down. 

340
00:18:03,520 --> 00:18:07,040
Like usually you go you fire, 
then you'll go down half an hour

341
00:18:07,040 --> 00:18:10,320
after that and start checking 
all the gas levels and as soon 

342
00:18:10,320 --> 00:18:14,360
as the gas levels are below the 
acceptable limits for the I 

343
00:18:14,360 --> 00:18:17,840
think it's COI think it was 
Jesus, I forgot my gases carbon 

344
00:18:17,840 --> 00:18:22,520
monoxide. 
I think they then you open that 

345
00:18:22,520 --> 00:18:25,320
area, then you go deeper make 
sure and you gradually do it. 

346
00:18:25,680 --> 00:18:29,080
So like 2 and it like 2 1/2 
hours plus mid shift blasting 

347
00:18:29,080 --> 00:18:32,480
lot sounds like it wasn't much. 
The productivity was very low 

348
00:18:32,480 --> 00:18:36,720
and that only sounds like I only
recently introduced telly remote

349
00:18:36,720 --> 00:18:39,160
bogging. 
So they were using line of sight

350
00:18:39,600 --> 00:18:44,000
bogger race like before that. 
So line of sights effectively 

351
00:18:45,440 --> 00:18:48,040
you're looking at the bogger 
from a distance on the drive 

352
00:18:48,040 --> 00:18:50,600
sitting on like a Turkey's nest 
or and you got a little hidey 

353
00:18:50,600 --> 00:18:54,160
hole you can get into with a 
remote control watching it 

354
00:18:54,160 --> 00:18:59,200
listening to it and then bogging
it visually from could be bloody

355
00:18:59,200 --> 00:19:02,280
a long way away. 
So it's like it's bloody it's a 

356
00:19:02,280 --> 00:19:06,160
fine art for people to do it. 
But that I don't even know if 

357
00:19:06,160 --> 00:19:08,840
that's even done in Australia 
anymore because there's been 

358
00:19:08,880 --> 00:19:12,680
fatal incidents where people 
have been squashed by boggers 

359
00:19:12,680 --> 00:19:15,520
because they're like there and 
might have been standing 

360
00:19:15,520 --> 00:19:18,560
somewhere they didn't bogger 
might have got out of control or

361
00:19:18,880 --> 00:19:19,960
malfunction. 
I'm not sure. 

362
00:19:19,960 --> 00:19:22,960
But there has been so pretty I 
don't even think it happens in 

363
00:19:22,960 --> 00:19:25,960
Australia anymore. 
Telly line of sight bogging my 

364
00:19:25,960 --> 00:19:29,480
own small operations. 
I'm not sure so and the the 

365
00:19:29,680 --> 00:19:31,840
telly remote, because telly 
remote bargains where you're in 

366
00:19:31,840 --> 00:19:36,280
a Hut either underground or on 
the surface watching a bloody TV

367
00:19:36,280 --> 00:19:40,240
screen and you essentially got a
little bogger simulator there 

368
00:19:40,240 --> 00:19:43,000
and operating from there. 
And the the technology with that

369
00:19:43,000 --> 00:19:47,360
now is like I'll bring I'll show
you the video here of the one of

370
00:19:47,360 --> 00:19:49,880
the it's the that's the same big
order I'm on. 

371
00:19:49,880 --> 00:19:53,360
It's one of one of the systems 
like you can map the path of the

372
00:19:53,360 --> 00:19:54,880
bogger. 
So like they pretty much get the

373
00:19:54,880 --> 00:19:58,280
bucket, turn it, click a button 
and it automatically goes back 

374
00:19:58,280 --> 00:20:01,240
to the stock pile based on the 
map that you've shown. 

375
00:20:01,240 --> 00:20:06,160
So it doesn't hit the wall, just
flies along in second gear and 

376
00:20:06,160 --> 00:20:08,360
the operator just has to get the
bucket and tip the bucket. 

377
00:20:08,400 --> 00:20:11,240
I think you can even order do 
that now and then they can 

378
00:20:11,240 --> 00:20:16,080
operate multiple boggers in. 
Using one operator or they can 

379
00:20:16,080 --> 00:20:18,760
have like, and then you can 
operate over shift change 

380
00:20:18,760 --> 00:20:21,120
because when you're far and you 
can keep the remote boggers 

381
00:20:21,120 --> 00:20:23,240
down. 
Yeah, so all that technology's 

382
00:20:23,960 --> 00:20:27,000
been pretty common over here, 
but it sounds like it's just 

383
00:20:27,000 --> 00:20:32,000
even at a Newmont mine in North 
America, it's only just started 

384
00:20:32,000 --> 00:20:36,080
really coming in. 
So just shows how different the 

385
00:20:36,080 --> 00:20:39,120
mining cultures are underground 
from here and over there. 

386
00:20:39,200 --> 00:20:42,800
So there is some. 
Don't mean to sound like a Dick,

387
00:20:43,320 --> 00:20:45,360
but just highlighting the 
obvious. 

388
00:20:46,080 --> 00:20:49,120
Room for room for improvement 
everywhere where and that'll in 

389
00:20:49,120 --> 00:20:51,360
the long run make them a bit 
more money if they can sort of 

390
00:20:52,080 --> 00:20:53,400
capitalise on those things. 
Hey, yeah. 

391
00:20:53,800 --> 00:20:55,840
Just just do it our way, it's 
quicker. 

392
00:20:57,440 --> 00:21:00,960
So let's talk about how they are
paying for the deal. 

393
00:21:01,040 --> 00:21:03,280
It's a pretty interesting 
financing, Trev. 

394
00:21:03,640 --> 00:21:07,320
We sort of dug into this one. 
So like I said, US 810 upfront 

395
00:21:07,320 --> 00:21:12,080
plus 20 million each if gold 
averages over 2900 over the the 

396
00:21:12,080 --> 00:21:16,080
first year afterwards and over 
3000 bucks an ounce over that 

397
00:21:16,080 --> 00:21:18,880
second year after Closings up to
850. 

398
00:21:18,880 --> 00:21:22,160
But we're now flash the sources 
of cash. 

399
00:21:22,160 --> 00:21:26,040
So how they're going to fund the
transaction First up is 350 

400
00:21:26,040 --> 00:21:29,080
million, all US I'm talking 
about here a three year term 

401
00:21:29,360 --> 00:21:33,000
gold prepayment. 
So essentially every month they 

402
00:21:33,000 --> 00:21:37,080
will deliver gold to the 
facilitators of this gold 

403
00:21:37,360 --> 00:21:41,280
prepayment, IE you're paying 
your principal down in gold, not

404
00:21:41,280 --> 00:21:44,760
cash. 
They call it roughly 150,000 oz 

405
00:21:44,800 --> 00:21:49,160
or to go down and it's based 
upon the prevailing gold forward

406
00:21:49,160 --> 00:21:53,240
curve at the date. 
So imagine this is locked in 

407
00:21:53,240 --> 00:21:56,000
when the transaction is agreed 
needs to be voted upon. 

408
00:21:56,520 --> 00:22:02,240
They want to execute this by Q1 
of next year, next calendar year

409
00:22:02,240 --> 00:22:06,600
that is so the the prevailing 
forward price It will you know 

410
00:22:07,000 --> 00:22:09,480
it's always sort of where the 
gold price is now and then goes 

411
00:22:09,480 --> 00:22:12,920
up a couple 100 bucks right now 
it's sort of approaches kind of 

412
00:22:12,920 --> 00:22:16,440
steadily 3000 ish dollars come 
three years time. 

413
00:22:16,440 --> 00:22:19,880
So they call that about 16% of 
their annual production over the

414
00:22:19,880 --> 00:22:23,080
next three years. 
You've then got a con note that 

415
00:22:23,080 --> 00:22:27,440
makes up to $100 million of the 
financing that is convertible at

416
00:22:27,520 --> 00:22:31,080
Canadian 7 bucks 90. 
Their stock closed after that 

417
00:22:31,080 --> 00:22:35,600
bump on the announcement at $6. 
This has a five year term 4 1/2%

418
00:22:35,640 --> 00:22:37,880
+ a a bit of an attaching 
warrant. 

419
00:22:38,200 --> 00:22:43,040
You've also then got a revolver 
for $150 million and a term loan

420
00:22:43,040 --> 00:22:47,040
for 100 million, both actually 
paying, you know, relatively 

421
00:22:47,040 --> 00:22:50,280
little compared to some of the 
other smaller, riskier mining 

422
00:22:50,280 --> 00:22:52,520
companies we've seen. 
They're paying Sofa plus a 

423
00:22:52,520 --> 00:22:56,200
margin which is about 3% 
depending on the leverage ratio 

424
00:22:56,360 --> 00:22:58,320
at the time. 
Actually, I actually quite like 

425
00:22:58,320 --> 00:23:02,000
how they they financed the deal.
There's no, no equity collusion 

426
00:23:02,240 --> 00:23:05,720
here, OK, maybe maybe the 
converts convert in an upside 

427
00:23:05,840 --> 00:23:09,320
scenario, but yeah, no upfront 
equity dilution that's, you 

428
00:23:09,320 --> 00:23:12,440
know, positive. 
So if we're if we assume they're

429
00:23:12,440 --> 00:23:15,240
kind of paying fair value for 
the asset, right, Look at the 

430
00:23:15,240 --> 00:23:17,280
look at the instrument doing the
bulk of the heavy lifting and 

431
00:23:17,280 --> 00:23:19,880
the financing, it's that gold 
prepaid where they're going to 

432
00:23:19,880 --> 00:23:23,720
be locking in an implied kind of
gold price for future deliveries

433
00:23:23,720 --> 00:23:25,440
based on the forward curve at 
that time. 

434
00:23:25,440 --> 00:23:28,760
Like you said, JD, the forward 
curve is sort of, you know, it's

435
00:23:29,280 --> 00:23:33,000
sitting above spot, it's well 
above consensus and and they're 

436
00:23:33,000 --> 00:23:35,280
effectively locking in those 
prices with this instrument for 

437
00:23:35,280 --> 00:23:37,400
the quantity of gold to be 
delivered into that prepaid. 

438
00:23:37,400 --> 00:23:40,960
And I like that because none of 
the gold mining equities all are

439
00:23:41,280 --> 00:23:44,000
included here. 
You know, the market's not 

440
00:23:44,000 --> 00:23:48,320
paying Spot gold price for them.
They're paying kind of consensus

441
00:23:48,320 --> 00:23:50,880
gold price or, or you know, or 
maybe a little bit above that. 

442
00:23:50,880 --> 00:23:53,480
But it's a bit over 2000. 
Yeah, ish. 

443
00:23:54,280 --> 00:23:56,520
They're not, they're not, you 
know, these the equities aren't 

444
00:23:56,520 --> 00:23:59,080
reflecting Spot gold, they're 
reflecting a, a curve which 

445
00:23:59,080 --> 00:24:01,840
trends sort of lower over time 
from a gold price perspective. 

446
00:24:01,840 --> 00:24:05,600
But the financing arrangement 
here gets to lock in closer to, 

447
00:24:05,640 --> 00:24:08,000
you know, higher prices spot 
future forward curve. 

448
00:24:09,560 --> 00:24:11,760
So they, they get, they get, 
they get the benefit of locking 

449
00:24:11,760 --> 00:24:13,960
in high prices despite the fact 
that, you know, the, the 

450
00:24:13,960 --> 00:24:15,960
market's not paying back for the
equities. 

451
00:24:16,840 --> 00:24:19,240
So I just, I quite like it. 
I'll play this, this snip to 

452
00:24:19,240 --> 00:24:21,000
elaborate a bit from the M&A 
call. 

453
00:24:21,240 --> 00:24:30,920
NPV on reserves only is $760 
million at 2150 per oz gold and 

454
00:24:30,920 --> 00:24:35,800
almost $1 billion at $2500 per 
oz gold. 

455
00:24:36,720 --> 00:24:39,520
So if you if you take their word
for it, they're paying $850 

456
00:24:39,880 --> 00:24:43,840
million including the 
contingents, which is probably 

457
00:24:43,840 --> 00:24:46,920
about 0.8 times naval on their 
own kind of reserves. 

458
00:24:46,920 --> 00:24:52,880
Only scenario at Spot gold price
of US 2600 ish today, the 

459
00:24:52,880 --> 00:24:56,240
prepaid, you know they get to 
lock in some of the value upside

460
00:24:56,240 --> 00:24:58,880
from paying less than spot NAV 
and and they also get the 

461
00:24:58,880 --> 00:25:01,920
benefit from Oz not in reserves 
like you talk about Maddie, if 

462
00:25:01,920 --> 00:25:04,680
it just kind of keeps on 
continuing which you sort of 

463
00:25:04,680 --> 00:25:06,400
expect your body to do. 
Fuck it up so. 

464
00:25:07,840 --> 00:25:10,120
We should probably check in 
there is financing costs, it's 

465
00:25:10,120 --> 00:25:12,480
not purely. 
By all accounts, the prepaid 

466
00:25:12,480 --> 00:25:14,920
looks expensive like from the 
financing cost perspective. 

467
00:25:15,120 --> 00:25:17,560
It's just that, yeah, the 
utilisation of the instrument I 

468
00:25:17,560 --> 00:25:20,840
quite like given what gold price
has done in a short period of 

469
00:25:20,840 --> 00:25:23,320
time and and what what kind of 
now you're always caught 

470
00:25:23,400 --> 00:25:28,200
apprehensive in are doing pro 
cyclical M and AI think by kind 

471
00:25:28,200 --> 00:25:31,320
of, you know, locking in the 
forward price via the prepaid 

472
00:25:31,320 --> 00:25:34,320
instrument They're yeah 
protecting themselves from 

473
00:25:34,320 --> 00:25:37,000
looking silly doing pro cyclical
M&A, Yeah and not issuing a 

474
00:25:37,000 --> 00:25:39,320
bunch of equity too. 
So the gold price is sort of 

475
00:25:39,320 --> 00:25:41,600
run, you think about what you 
can kind of utilise. 

476
00:25:41,600 --> 00:25:43,960
The first thing you kind of 
think about is your equity if 

477
00:25:43,960 --> 00:25:46,360
that's also run on the back of 
the gold price run. 

478
00:25:46,360 --> 00:25:49,520
But this is a bit of a a 
creative way to to tap into that

479
00:25:49,960 --> 00:25:53,400
without diluting, yeah. 
We'll have to say, what do you 

480
00:25:53,440 --> 00:25:58,160
think about the is it a bloody? 
Is it a good bang for buck? 

481
00:25:58,320 --> 00:26:00,560
What sort of valuation they're 
putting on it? 

482
00:26:01,320 --> 00:26:06,160
So it depends what you flash. 
Like Trev said .8 times NAV if 

483
00:26:06,160 --> 00:26:11,440
you use 2600, if you use which 
is the prices that Chuck down 

484
00:26:11,440 --> 00:26:16,720
the model 2150 U.S. dollars, 
you're paying a bit over one 

485
00:26:16,720 --> 00:26:20,760
times NAV. 
So you're paying pretty full 

486
00:26:20,760 --> 00:26:22,920
value. 
Although the upside is that that

487
00:26:22,920 --> 00:26:27,000
is only on reserves and that is 
on a gold price 500 bucks ish 

488
00:26:27,000 --> 00:26:29,360
lower than than where we are 
today. 

489
00:26:29,400 --> 00:26:32,360
So if if you're confident that 
and I'm sure the management team

490
00:26:32,360 --> 00:26:35,920
is confident that this mine is 
not going to stop in 20-30, it's

491
00:26:35,920 --> 00:26:39,320
going to it's going to keep 
going for a good while longer. 

492
00:26:39,840 --> 00:26:42,000
And you're also, I mean, why 
would you be managing a gold 

493
00:26:42,000 --> 00:26:44,480
company if you're not thinking 
the gold price is going to tick 

494
00:26:44,480 --> 00:26:47,200
along? 
Then if those things hold and 

495
00:26:47,200 --> 00:26:49,960
importantly if those things, if 
that, you know, gold price holds

496
00:26:49,960 --> 00:26:53,480
true over the next few years, 
importantly as it sort of ties 

497
00:26:53,480 --> 00:26:56,840
in with your financing, then you
will see a bit of value. 

498
00:26:57,040 --> 00:27:01,040
And then cream on top of that is
all the other flows of being one

499
00:27:01,040 --> 00:27:04,200
of the standout bunch of names 
in in your jurisdiction and all 

500
00:27:04,200 --> 00:27:06,840
those other things that you get.
Yeah, jumping ahead a bit, 

501
00:27:07,040 --> 00:27:09,920
Maddie, this is to that exact 
question. 

502
00:27:10,680 --> 00:27:13,880
I asked a a North American 
correspondent what what he 

503
00:27:13,880 --> 00:27:15,160
thought and he told me these 
points. 

504
00:27:15,400 --> 00:27:20,200
Definitely very full price at 
1.1 times NPV at 5% discount 

505
00:27:20,200 --> 00:27:22,600
rate at 2150 per oz. 
Is that the right number to use?

506
00:27:22,600 --> 00:27:25,560
I don't know, but he reckons 
that was expected because 

507
00:27:25,760 --> 00:27:28,800
Newmont apparently had over 100 
CAS signed for this sale 

508
00:27:28,800 --> 00:27:29,800
process. 
So it was, you know, an 

509
00:27:29,800 --> 00:27:32,560
attractive sale process. 
Yeah, all there is a midcap 

510
00:27:32,560 --> 00:27:34,480
dialling here. 
Given how well they delivered 

511
00:27:34,600 --> 00:27:37,520
low cost Camino Rojo and asset 
they picked up for peanuts from 

512
00:27:37,520 --> 00:27:40,560
Gold Corp. 
He reckons that all the guys 

513
00:27:40,680 --> 00:27:44,200
will likely push for that. 
You know, my life out from a six

514
00:27:44,200 --> 00:27:46,680
years to 10 years in the in the 
next year or so. 

515
00:27:47,080 --> 00:27:48,960
And he reckons, you know, full 
price paid. 

516
00:27:48,960 --> 00:27:53,080
But if if they can manage the 
grade decline and the sustaining

517
00:27:53,080 --> 00:27:55,080
CapEx, he reckons, you know 
they'll do, they'll do well out 

518
00:27:55,080 --> 00:27:56,680
of it. 
The grade decline is an 

519
00:27:56,680 --> 00:27:59,200
interesting one because I looked
back 20 years to see what the 

520
00:27:59,200 --> 00:28:02,520
reserve was back then and the 
the grade was a bit lower. 

521
00:28:02,560 --> 00:28:07,080
It was 5.5 ish grammes per 
tonne, very, very hard to to 

522
00:28:07,080 --> 00:28:08,680
find what the cut off grade 
being used. 

523
00:28:08,680 --> 00:28:13,400
But today like I said before, 
6.2 roughly grammes per tonne 

524
00:28:13,400 --> 00:28:17,320
using a 3.8 grammes per tonne 
cut off grade going going deeper

525
00:28:17,320 --> 00:28:21,920
and you know all that. 
But that has over 28 years 

526
00:28:22,080 --> 00:28:25,920
remained pretty, pretty 
consistent. 96% recovery I 

527
00:28:25,960 --> 00:28:27,720
think. 
I think if you look at like my 

528
00:28:27,720 --> 00:28:30,320
Bush maths and looking at it 
like you look at the, IT looks 

529
00:28:30,320 --> 00:28:33,240
like Newmont's put a bit of 
capital in it with the the 

530
00:28:33,400 --> 00:28:35,840
crushing hoisting conveyor 
system. 

531
00:28:35,840 --> 00:28:39,520
So looks like in the, you know, 
one and half million tonne plan,

532
00:28:40,960 --> 00:28:46,000
existing infrastructure, 200,000
oz mine, potentially a bit over 

533
00:28:46,120 --> 00:28:50,240
2000 bucks Aussie all in 
sustaining and then paid what 

534
00:28:50,680 --> 00:28:53,280
one point if we converted to 
Aussie to try and compare it to 

535
00:28:53,280 --> 00:28:58,520
Aussie things paying paying what
1.3 billion, not all upfront 

536
00:28:58,840 --> 00:29:03,360
effectively, that's all you 
compare that to a that's what 

537
00:29:03,360 --> 00:29:05,840
Spartan that's going to probably
need to be taken out for 2 

538
00:29:05,840 --> 00:29:08,800
billion. 
On it's push mass. 

539
00:29:09,000 --> 00:29:10,920
Push mass, Yeah. 
Yeah, it looks, it doesn't look 

540
00:29:10,920 --> 00:29:13,640
too bad, no. 
It but it does look full value 

541
00:29:13,640 --> 00:29:16,320
when you compare it to like the 
Tel Havron deal for example. 

542
00:29:16,320 --> 00:29:19,840
But the difference is obviously 
the the dynamics of that sale 

543
00:29:19,840 --> 00:29:22,720
process which gave heaps of 
leverage to to Greyland Gold. 

544
00:29:23,280 --> 00:29:26,200
It looks, it looks full valued 
versus that, right? 

545
00:29:26,200 --> 00:29:29,800
So that they talk about 150 
million bucks free cash flow per

546
00:29:29,800 --> 00:29:34,640
annum at a 2150 gold price, 
everything remaining constant. 

547
00:29:34,960 --> 00:29:36,640
And you know, you've got other 
potential. 

548
00:29:36,640 --> 00:29:39,760
You know, they, they talk a lot 
about optimising all those sorts

549
00:29:39,760 --> 00:29:42,120
of things. 
Definitely not meal constrained,

550
00:29:42,120 --> 00:29:44,440
you know, like, like most 
underground minds mine 

551
00:29:44,440 --> 00:29:46,880
constrained. 
But there is the capacity given 

552
00:29:46,880 --> 00:29:50,200
they can go up to 1.5 million 
tonnes per annum if they can do 

553
00:29:50,200 --> 00:29:53,120
anything over the next few years
to try and make that work a bit 

554
00:29:53,120 --> 00:29:54,440
better. 
That's a bit more your your 

555
00:29:54,440 --> 00:29:58,040
area, Maddie, but there is 
potential for them to push 

556
00:29:58,040 --> 00:30:02,080
through more answers and get a 
bit more upside on on that front

557
00:30:02,080 --> 00:30:03,800
too. 
So they're all those other 

558
00:30:03,800 --> 00:30:06,240
little goals that they can sort 
of strike out for. 

559
00:30:06,520 --> 00:30:09,440
Yeah, no, they and when I 
probably comparing it to Spartan

560
00:30:09,440 --> 00:30:11,760
might be the right thing in 
terms of Spartan, it's probably 

561
00:30:11,760 --> 00:30:15,720
a lot going to be a lot 
shallower simpler because it's 

562
00:30:15,720 --> 00:30:19,440
not 28 years, not as deep, not 
as not as hot. 

563
00:30:21,080 --> 00:30:23,960
There's obviously the the North 
American aspect to it, trying to

564
00:30:24,040 --> 00:30:28,120
keep the cost down and keep the 
the delivery of those answers. 

565
00:30:28,120 --> 00:30:30,360
But if they can, you know when 
you got the grade in your 

566
00:30:30,360 --> 00:30:34,560
recovery on your side like that.
Yeah, I suppose looking as you 

567
00:30:34,560 --> 00:30:36,760
said, they paid a bit more than 
Telfer and all that. 

568
00:30:36,760 --> 00:30:39,040
But I think when we did the 
Telfer Avront deal, we're like, 

569
00:30:39,040 --> 00:30:41,560
fuck, that's actually for what 
they're getting is a pretty good

570
00:30:41,560 --> 00:30:42,240
deal. 
Totally. 

571
00:30:42,320 --> 00:30:44,640
Yeah, I mean. 
This is you can get a good deal 

572
00:30:44,640 --> 00:30:46,120
off Newmont. 
They're going out. 

573
00:30:46,120 --> 00:30:49,200
They're flying out the door. 
That's that's it's usually a 

574
00:30:49,200 --> 00:30:52,280
good strategy to acquire assets 
that come out of majors, right? 

575
00:30:52,280 --> 00:30:54,880
Like that Northern Star, It's 
gonna look at what built then. 

576
00:30:55,200 --> 00:30:59,120
Totally, you know, there's there
there are exceptions to the 

577
00:30:59,120 --> 00:31:00,840
rule, but in general it's a 
pretty good rule. 

578
00:31:00,840 --> 00:31:05,080
And I I also heard that kind of 
compared to evolution buying Red

579
00:31:05,080 --> 00:31:10,200
Lake, you've got a much more de 
risked and and simple minor here

580
00:31:10,200 --> 00:31:13,880
and also a place where the 
unions are less entrenched than 

581
00:31:14,120 --> 00:31:15,760
than you have in sort of Red 
Lake area too do. 

582
00:31:16,000 --> 00:31:19,080
You know who else was on the CR?
Oh, who? 

583
00:31:19,120 --> 00:31:20,600
Who else had been in the 
process? 

584
00:31:20,600 --> 00:31:22,120
Yeah. 
Signed ACA confidential. 

585
00:31:22,120 --> 00:31:23,640
Man, I don't know. 
Yeah, they're fine. 

586
00:31:23,640 --> 00:31:26,520
That's why. 
That's why there was that. 

587
00:31:26,520 --> 00:31:29,200
Why can't you be like magnetic 
and tell you everyone who's in 

588
00:31:29,200 --> 00:31:32,000
the data room? 
They're more people like them. 

589
00:31:32,680 --> 00:31:38,120
They had a bit of a a cheeky 
slide on value accretion. 

590
00:31:38,520 --> 00:31:39,000
They. 
Did. 

591
00:31:39,400 --> 00:31:42,040
I it's a bit of a funny one, 
given that the financing. 

592
00:31:42,040 --> 00:31:45,040
Yeah, complimenting them on 
buddy, you know, maybe maybe 

593
00:31:45,040 --> 00:31:48,120
picking up an asset out of the 
major and you know with wishing 

594
00:31:48,120 --> 00:31:50,320
him good luck, but I gotta gotta
grill him on this slide. 

595
00:31:50,320 --> 00:31:52,520
Not a fan of this slide showing 
how a creative the deal is on a 

596
00:31:52,520 --> 00:31:55,000
per share basis. 
You fund your deal with debt. 

597
00:31:55,280 --> 00:31:57,680
Everything's a creative on a per
share basis because you got 

598
00:31:57,680 --> 00:32:00,200
extra earnings, extra 
production, extra everything 

599
00:32:00,200 --> 00:32:02,600
without issuing a new share. 
Of course it's a creative you 

600
00:32:02,600 --> 00:32:05,520
debt funded it. 
So I just I should? 

601
00:32:05,520 --> 00:32:08,920
Slide in next to that like your 
net debt day, but or something 

602
00:32:08,920 --> 00:32:10,720
like that just to show that it's
not all one way. 

603
00:32:10,920 --> 00:32:13,080
Exactly. 
Good M&A isn't, isn't about per 

604
00:32:13,080 --> 00:32:15,840
share accretion, it's about 
sound, you know, weighing up the

605
00:32:15,840 --> 00:32:18,960
risk verse reward capital 
allocating accordingly for, for 

606
00:32:18,960 --> 00:32:22,360
where you have no good, good, 
good risk for, for the good 

607
00:32:22,360 --> 00:32:23,400
reward for the risk you're 
taking. 

608
00:32:23,400 --> 00:32:26,280
I think this slide does nothing 
to appreciate the additional 

609
00:32:26,280 --> 00:32:28,960
business risk that you, you know
it comes with adding leverage to

610
00:32:28,960 --> 00:32:31,960
your cap structure. 
It's just pointing a rosy 

611
00:32:31,960 --> 00:32:33,280
picture. 
We expect nothing else from it 

612
00:32:33,960 --> 00:32:36,160
bankers, right, That will always
post the rosy thing. 

613
00:32:36,160 --> 00:32:39,120
But but you know, I think we're 
you know, we're keen to see how 

614
00:32:39,120 --> 00:32:41,080
it all comes along. 
I think it'll be an interesting 

615
00:32:41,080 --> 00:32:43,520
one to fall in nonetheless. 
The straight like the like the 

616
00:32:43,520 --> 00:32:47,520
deal and the yeah, the stock was
up like 9% or something. 

617
00:32:47,600 --> 00:32:50,520
Yeah, something like that. 
What did I trade on again, Ola? 

618
00:32:51,280 --> 00:32:56,000
The market, yeah, I think NYC as
well as in Canada, yeah. 

619
00:32:56,240 --> 00:32:59,800
Yeah, yeah. 
Interesting. 

620
00:32:59,960 --> 00:33:01,440
Let's talk a bit about. 
Dick and boys. 

621
00:33:01,560 --> 00:33:02,840
Metallurgy. 
Oh, that's. 

622
00:33:03,800 --> 00:33:06,440
Right, Spartan chucked out some 
Met results. 

623
00:33:06,440 --> 00:33:08,640
Ding, Ding, Ding to start. 
Oh yeah, true. 

624
00:33:09,240 --> 00:33:14,080
So further, it's sort of most of
it was from the top 450 metres. 

625
00:33:14,080 --> 00:33:16,720
So bring up the pitches and 
everything. 

626
00:33:16,720 --> 00:33:23,160
Averaged 92.3% recovery for the 
over 15 Tests for the top 450. 

627
00:33:23,400 --> 00:33:29,240
So 91.6% predicted recovery 
based on the grade of those 

628
00:33:29,240 --> 00:33:31,240
regions and the predicted plant 
conditions. 

629
00:33:31,240 --> 00:33:33,880
So they gave a lot of the MET 
test results and then I guess 

630
00:33:33,880 --> 00:33:38,920
the predicted recovery based on 
the the way I interpreted the 

631
00:33:38,920 --> 00:33:42,600
average grade of those areas and
how the plan will operate. 

632
00:33:42,600 --> 00:33:45,320
So which the predicted 
recoveries will lower than the 

633
00:33:45,320 --> 00:33:49,520
test recoveries. 
So it was that's a passes the 

634
00:33:49,520 --> 00:33:52,800
sniff test you'd say. 
So gravity recovery sitting 

635
00:33:52,800 --> 00:33:57,520
around 25 to 30% you can and you
can see from the stages and the 

636
00:33:57,520 --> 00:34:01,720
recoveries for each of those 
stages, the recovery did decline

637
00:34:01,720 --> 00:34:05,560
as they went deeper with so 
stage 4 recovery drops slightly 

638
00:34:05,560 --> 00:34:09,120
below 90% and but I'll go into 
that later. 

639
00:34:09,400 --> 00:34:13,719
It's these results are based on 
I guess stage 1 and 2 with 48 

640
00:34:13,719 --> 00:34:17,800
hour leach at 100 Micron grind 
and stage 3 and four with 48 

641
00:34:17,800 --> 00:34:21,199
hour leach with 75 milk Micron 
grind. 

642
00:34:21,760 --> 00:34:24,960
So we'll get in the grind as 
well because we're going below 

643
00:34:24,960 --> 00:34:27,800
75. 
Now remember Dale Garanga has an

644
00:34:27,800 --> 00:34:30,920
existing two and it's got 
existing infrastructure two and 

645
00:34:30,920 --> 00:34:32,440
a half million tonne per annum 
mil. 

646
00:34:32,679 --> 00:34:36,520
So which is run by the the jaw 
two big jaw crusher and a big 

647
00:34:36,520 --> 00:34:38,159
sag mill. 
Yep, so they're going to have to

648
00:34:38,159 --> 00:34:40,760
do some mods to that which will 
get into what we think might 

649
00:34:40,760 --> 00:34:44,280
that might be Yep look, the the 
fact I'm going into these met 

650
00:34:44,280 --> 00:34:46,679
results in such detail. 
Spartan. 

651
00:34:46,960 --> 00:34:50,360
You can repay me by calling 
Steve Tarr from CRE insurance 

652
00:34:50,360 --> 00:34:53,679
because and getting CRE to just 
make sure that existing 

653
00:34:53,679 --> 00:34:57,840
infrastructure there right now 
is insured properly. 

654
00:34:57,840 --> 00:35:01,800
Because on I'm basing a lot of a
lot of what I'm about to say is 

655
00:35:01,800 --> 00:35:05,000
based on that existing 
infrastructure that is in place 

656
00:35:05,280 --> 00:35:07,200
now. 
If something happens to it from 

657
00:35:07,200 --> 00:35:10,720
either acts of Mother Nature or 
human nature and they're not 

658
00:35:10,720 --> 00:35:13,640
bloody properly insured for it 
and they didn't take action with

659
00:35:13,640 --> 00:35:17,720
CRE, I'm going to be pissed off 
because all my assumptions of 

660
00:35:17,880 --> 00:35:19,920
for nothing. 
So I don't want, I want that 

661
00:35:19,920 --> 00:35:21,840
mill protected. 
It's a layup, Maddie. 

662
00:35:22,000 --> 00:35:25,640
Yeah, I want CRE to protect it. 
So mate, don't piss me off. 

663
00:35:25,640 --> 00:35:27,960
Call CRE Insurance. 
Maybe it's easy for me. 

664
00:35:27,960 --> 00:35:31,440
I've got maybe your fair story 
for you involving involving 

665
00:35:31,480 --> 00:35:35,560
insurance and gas coin. 
Not not Spartan, but the 

666
00:35:35,560 --> 00:35:38,880
previous yeah, I'll tell you 
that one off here, but CRE could

667
00:35:38,880 --> 00:35:41,440
have fixed that. 
CRE can fix anything. 

668
00:35:42,080 --> 00:35:44,480
Gas corn would still be gone 
probably if CRE were. 

669
00:35:44,720 --> 00:35:47,360
Off I could make a case that 
that would be possible. 

670
00:35:47,360 --> 00:35:51,280
But are you taking into account 
how good Steve Tarr is when you 

671
00:35:51,280 --> 00:35:58,000
make that case anyway? 
No, the positive thing for 

672
00:35:58,000 --> 00:36:01,120
potential recovery improvements 
based on these MET results, and 

673
00:36:01,120 --> 00:36:02,480
I'll bring up the graph here is 
this. 

674
00:36:02,920 --> 00:36:05,960
You can see there's a linear 
relationship between the ground 

675
00:36:05,960 --> 00:36:09,160
size and the 48 hour tiles grade
for the preliminaries, 

676
00:36:09,520 --> 00:36:12,640
preliminary results I got for 
stage five and six, which is the

677
00:36:12,640 --> 00:36:15,400
deepest stuff, the honeypot, 
never, never. 

678
00:36:15,680 --> 00:36:20,800
So yeah, So the overall 
recovery, it's and you can do it

679
00:36:20,800 --> 00:36:23,760
from the tables, you, you 
subtract that tile grade from 

680
00:36:23,760 --> 00:36:26,760
the head grade and divide all 
that by the head grade. 

681
00:36:26,920 --> 00:36:28,560
That gives you the overall 
recovery. 

682
00:36:28,560 --> 00:36:31,200
Essentially what's getting 
pissed, the shit they get 

683
00:36:31,640 --> 00:36:33,440
compared to what's getting 
pissed out to tiles. 

684
00:36:33,440 --> 00:36:38,880
So you can see for stage 4, so 
7.2 -, .74 / 7.2 gives only 

685
00:36:38,880 --> 00:36:42,720
9.8%. 
So that was done at 75 Micron 

686
00:36:42,720 --> 00:36:45,400
grand size. 
Now you can see on this graph 

687
00:36:45,400 --> 00:36:49,440
based on these two preliminary 
tests on the deep stuff, the 

688
00:36:49,440 --> 00:36:54,320
tile grade keeps decreasing as 
they grind it finer. 

689
00:36:54,720 --> 00:36:59,160
So at 63 Micron, which isn't we 
don't usually talk about 60, 

690
00:36:59,160 --> 00:37:03,240
usually it goes 75 and then they
start talking about like high 

691
00:37:03,240 --> 00:37:05,640
pressure grinding roles and 
things like that. 

692
00:37:05,640 --> 00:37:08,000
But I. 
Remember, Stewart is saying 75 

693
00:37:08,000 --> 00:37:10,400
was a bit of a. 
Yeah, jeez, I think it's the the

694
00:37:10,400 --> 00:37:13,160
rule of thumb where you sort of 
what you go down to. 

695
00:37:13,160 --> 00:37:20,520
But at 63 Micron, the average 
recoveries were 92.2 and 92 1/2 

696
00:37:20,520 --> 00:37:22,640
percent. 
So they've, you know, added it 

697
00:37:22,640 --> 00:37:27,000
looks like if they do grind at 
finer, they can get another 

698
00:37:27,000 --> 00:37:29,880
couple of percent recovery. 
So, you know, extra 2% recovery 

699
00:37:29,880 --> 00:37:33,000
of 150,000 oz. 
There's 3000 oz, Yeah. 

700
00:37:33,840 --> 00:37:35,720
More power though. 
There is more power. 

701
00:37:35,760 --> 00:37:40,800
It does require more power, but 
it's after that power is 

702
00:37:40,800 --> 00:37:42,720
consumed like. 
What's the benefit? 

703
00:37:42,720 --> 00:37:45,560
Pouring an extra gold bar 
fucking doesn't cost anything 

704
00:37:45,560 --> 00:37:47,120
more if you're pissing it out 
the tails. 

705
00:37:47,120 --> 00:37:53,080
So it's a, it's a cost, it's a 
power to bloody revenue 

706
00:37:53,320 --> 00:37:55,120
comparison that they'll need to 
make. 

707
00:37:55,120 --> 00:37:58,160
Because marginally more grind 
media as well, hey? 

708
00:37:58,400 --> 00:38:01,480
Yeah. 
So you would need, well, it's a,

709
00:38:01,680 --> 00:38:04,960
it's a, it's a power thing, but 
it's a CapEx thing because to, 

710
00:38:04,960 --> 00:38:08,040
to grind it down to 63, they're 
talking about doing test work to

711
00:38:08,040 --> 00:38:11,240
grind it down to 53. 
So if they can increase the 

712
00:38:11,240 --> 00:38:14,720
cover recovery even more, so 
they effectively need a bigger 

713
00:38:14,720 --> 00:38:16,760
ball mill. 
So you need a bigger, bigger 

714
00:38:16,760 --> 00:38:19,400
ball mill which has more balls 
in it. 

715
00:38:20,800 --> 00:38:23,000
And because it's bigger, it 
requires more power. 

716
00:38:23,000 --> 00:38:25,400
So it's all all going to be 
based, it's all going to be 

717
00:38:25,400 --> 00:38:27,760
based off a kilowatt calculation
at the start. 

718
00:38:27,760 --> 00:38:31,200
It's like right, Are we going to
grind to 63 or are we going to 

719
00:38:31,200 --> 00:38:34,040
grind to 53? 
How big of a ball mill do we 

720
00:38:34,040 --> 00:38:37,880
need to install with? 
I think ball mills run it. 

721
00:38:37,920 --> 00:38:41,080
I think it's 30 to 35% ball 
charge. 

722
00:38:41,320 --> 00:38:44,560
But if you got a bigger ball 
mill, there's more balls bloody 

723
00:38:44,560 --> 00:38:47,160
in it to bloody grind the apps 
living piss out of it. 

724
00:38:47,160 --> 00:38:53,400
So now, considering what they've
got already, and now I've talked

725
00:38:53,400 --> 00:38:57,360
about it before, is so that that
ball meal has to go in that that

726
00:38:57,360 --> 00:38:59,360
need. 
They need that ball meal to 

727
00:38:59,480 --> 00:39:02,200
grind it down to 53 or 63. 
That's a given. 

728
00:39:02,440 --> 00:39:04,720
But considering they got the 
massive jaw crusher and the 

729
00:39:04,720 --> 00:39:07,320
massive sag mill already, 
they've they've obviously got 

730
00:39:07,320 --> 00:39:12,280
the two options to either so 
they can go jaw to the big sag, 

731
00:39:12,440 --> 00:39:15,440
then into the ball mill. 
From that there will there's 

732
00:39:15,440 --> 00:39:18,840
scats that come out of the ball 
the the sag mill that have to be

733
00:39:18,840 --> 00:39:22,400
either chucked back into the sag
mill or like a you need like a 

734
00:39:23,040 --> 00:39:26,160
tertiary cone crusher. 
I think it is like to actually 

735
00:39:26,480 --> 00:39:29,160
crush those scats down to then 
feedback into the sag. 

736
00:39:29,400 --> 00:39:31,720
Otherwise you just got these 
fucking shop puts everywhere 

737
00:39:31,720 --> 00:39:37,600
that you that are good fuck all.
Or they can, you know, install 

738
00:39:37,600 --> 00:39:40,760
to like a three stage crushing 
system to go into the ball mill.

739
00:39:40,760 --> 00:39:46,800
So the existing jaw then to cone
crushes Jowdry like cone 

740
00:39:46,800 --> 00:39:49,000
crushes. 
That'll get it down to the 8 to 

741
00:39:49,000 --> 00:39:51,920
10 mil that is needed to then 
feed into the ball mill. 

742
00:39:52,160 --> 00:39:55,840
So it'll be wiring up right, 
Because I'm pretty sure the the 

743
00:39:55,840 --> 00:39:58,720
big sag mill they got would use 
a lot more a lot of power. 

744
00:39:59,000 --> 00:40:01,840
So it's like, but it's there, 
it's already there. 

745
00:40:02,120 --> 00:40:05,040
So it's like, well, is that the 
best option or? 

746
00:40:05,840 --> 00:40:09,840
Is installing 2 cone crushes and
having the three stage crushing 

747
00:40:09,840 --> 00:40:11,360
system to go in the better 
option? 

748
00:40:11,840 --> 00:40:15,560
22 cone crushes first one SAG 
mill you got 2 bits of kit to 

749
00:40:15,560 --> 00:40:19,400
maintain rather than 1. 
So it's going to be the that's 

750
00:40:19,400 --> 00:40:21,640
going to be the way up. 
It's like you you would. 

751
00:40:21,640 --> 00:40:24,600
I think I said it the opposite 
way in previous episode, but 

752
00:40:24,600 --> 00:40:28,760
you'd think if they can go jaw 
to existing SAG, manage scats 

753
00:40:28,760 --> 00:40:31,320
into a new ball mill, 
considering that existing 

754
00:40:31,320 --> 00:40:34,040
infrastructure think that's 
probably the way they'd go. 

755
00:40:34,280 --> 00:40:40,040
So I think 3 stage crushing in 
the ball was the norm, but I 

756
00:40:40,040 --> 00:40:43,040
think places like from what I've
heard, Thunderbox, Mangari, 

757
00:40:43,640 --> 00:40:45,840
they're going jaw to sag to 
ball. 

758
00:40:45,960 --> 00:40:47,280
So interesting. 
Yeah. 

759
00:40:47,400 --> 00:40:52,520
So considering it's already 
there, Spartan or whoever the 

760
00:40:52,520 --> 00:40:54,600
fuck are going to mind this, 
whoever's going to own it, 

761
00:40:54,760 --> 00:40:56,920
they'll make that decision in 
due course. 

762
00:40:57,360 --> 00:41:00,640
Could have gone if they they 
raise 300 bucks when they're up 

763
00:41:00,640 --> 00:41:02,960
at $1.50 they would have bloody 
helped them. 

764
00:41:03,080 --> 00:41:04,320
They could have had all the 
money for it. 

765
00:41:04,320 --> 00:41:06,120
Then back of the back 20, up 
10%. 

766
00:41:06,120 --> 00:41:08,760
Today they went back to 2010. 
Yeah, yeah. 

767
00:41:09,000 --> 00:41:12,560
And gold price ripped up so. 
Yeah, the more cash you raised, 

768
00:41:12,560 --> 00:41:14,520
the less likely you are to get 
acquired to. 

769
00:41:15,800 --> 00:41:22,200
But yeah, maybe, yeah, depends 
if someone wants cash. 

770
00:41:22,560 --> 00:41:24,800
Yeah, most of them. 
Mine is a cashed up, aren't 

771
00:41:24,800 --> 00:41:26,560
they? 
You just got a deal in there. 

772
00:41:26,680 --> 00:41:30,040
And they shouldn't even be 
thinking about getting a quad or

773
00:41:30,040 --> 00:41:34,360
should be thinking about mining 
it Go mine right. 

774
00:41:34,640 --> 00:41:39,080
Say owner Piedmont set to tie 
the knot the most it's is it a 

775
00:41:39,080 --> 00:41:45,280
bit of a oh fuck all those well 
the two of an AVL was it 

776
00:41:45,360 --> 00:41:49,240
Australian Vanadium and TM TMT? 
Yeah. 

777
00:41:49,400 --> 00:41:51,160
Yeah. 
Logical merger, yeah. 

778
00:41:51,240 --> 00:41:53,520
It's one we were expecting, 
that's for sure. 

779
00:41:53,720 --> 00:41:55,800
Totally. 
Yeah, I'm impressed by your 

780
00:41:55,800 --> 00:41:57,400
metallurgy knowledge just gets 
better and better. 

781
00:41:57,480 --> 00:41:58,600
Thank you. 
Thank you, Travis. 

782
00:41:59,520 --> 00:42:01,240
Nathan Stordis is like a proud 
father. 

783
00:42:03,880 --> 00:42:06,480
Yeah, this is so say owner 
Piedmont, they're they're tied. 

784
00:42:06,480 --> 00:42:08,880
They're not. 
And the, the, the details of the

785
00:42:08,880 --> 00:42:11,480
deal kind of emerged about about
30 minutes before we hit hit 

786
00:42:11,480 --> 00:42:13,240
record. 
So, you know, we got to see 

787
00:42:13,240 --> 00:42:16,880
what, what it all looked like. 
So they're, they're the deal is 

788
00:42:16,880 --> 00:42:19,920
basically both of them, both 
companies are going to emerge 

789
00:42:19,920 --> 00:42:24,000
with 50% each of of the merge 
Co, which is technically the 

790
00:42:24,120 --> 00:42:25,600
head Co. 
We say owner, but like they're 

791
00:42:25,600 --> 00:42:27,280
called on a merge Co, which 
means they're going to rename 

792
00:42:27,280 --> 00:42:30,360
the company I reckon. 
And it will be run by say 

793
00:42:30,360 --> 00:42:34,760
owner's CEO at the moment, all 
all up, there's 150 million 

794
00:42:34,760 --> 00:42:37,560
bucks of new equity in 
Australian dollars that is going

795
00:42:37,560 --> 00:42:41,000
to make its way into that pro 
forma entity in a, in a somewhat

796
00:42:41,000 --> 00:42:44,560
kind of complicated manner. 
Sale sale is launching like a 

797
00:42:44,600 --> 00:42:47,160
well, they launched a $40 
million capital raise kind of 

798
00:42:47,160 --> 00:42:49,600
today. 
Piedmont is expected to to do 

799
00:42:49,600 --> 00:42:53,440
similar sort of when you know 
the markets in the US open. 

800
00:42:53,440 --> 00:42:56,800
And then once the merger is 
effective with both with you 

801
00:42:56,800 --> 00:42:59,960
know about 40 million Australian
each of their respective things 

802
00:42:59,960 --> 00:43:01,160
that the two companies going to 
merge. 

803
00:43:01,160 --> 00:43:05,080
And at that point, RCF has this 
conditional placement where 

804
00:43:05,080 --> 00:43:08,920
they're going to tip in about 69
million Australian as a 

805
00:43:09,120 --> 00:43:11,840
conditional on that. 
Into the pro forma. 

806
00:43:11,920 --> 00:43:14,960
Into the pro forma. 
Have you ever seen anything like

807
00:43:15,000 --> 00:43:17,640
this? 
Then another capital raise for 

808
00:43:17,640 --> 00:43:18,960
another 22. 
Exactly. 

809
00:43:19,680 --> 00:43:21,080
Follow on. 
Yeah, potential follow on 

810
00:43:21,080 --> 00:43:23,800
raising for another 22 1/2 to 
come where after that too. 

811
00:43:24,160 --> 00:43:26,920
So yeah, have you ever seen that
where both sides of a merger, 

812
00:43:26,960 --> 00:43:30,440
both raising money to make a 
merger happen? 

813
00:43:30,480 --> 00:43:34,000
I haven't. 
Seen both sides do it yet and 

814
00:43:34,080 --> 00:43:36,840
but I have seen the conditional 
raises do do happen a bit 

815
00:43:36,840 --> 00:43:39,280
especially with like you know 
private equity you'll see Aussie

816
00:43:39,280 --> 00:43:42,120
super do it from time to time in
in mining companies, things like

817
00:43:42,120 --> 00:43:44,000
that, but. 
Whatever the North American 

818
00:43:44,000 --> 00:43:48,160
equivalent of 601 One is, 
colours light they would be so 

819
00:43:48,240 --> 00:43:50,000
the brokers would be so happy 
over there. 

820
00:43:50,440 --> 00:43:53,160
What is the 601 One equivalent 
in Canada? 

821
00:43:53,960 --> 00:43:55,560
Don't know. 
There, there'll be something in 

822
00:43:55,560 --> 00:43:58,240
Vancouver there. 
Love it. 

823
00:43:58,360 --> 00:44:00,240
Yeah. 
So you got all this new equity 

824
00:44:00,240 --> 00:44:02,280
coming into it. 
And there's some obvious 

825
00:44:02,560 --> 00:44:05,840
benefits here, not least of 
which is just the simplification

826
00:44:05,840 --> 00:44:09,960
of of the North American lithium
ownership dynamic, you know, 

827
00:44:09,960 --> 00:44:13,080
100% owned by the same entity. 
You don't have that weird off 

828
00:44:13,080 --> 00:44:16,640
taking place which you know, 
it's just a a big drag on the 

829
00:44:16,640 --> 00:44:19,920
complexity and and the way that 
investors sort of had any 

830
00:44:19,920 --> 00:44:22,880
appetite for either of the 
companies really was this quite 

831
00:44:22,880 --> 00:44:25,040
onerous off take depending on 
what the, you know, lithium 

832
00:44:25,040 --> 00:44:27,600
price was at any point in time. 
This deal just tidies all of 

833
00:44:27,600 --> 00:44:29,040
that up. 
So it just makes sense. 

834
00:44:29,040 --> 00:44:31,320
It's overdue. 
What do you guys think of of 

835
00:44:31,320 --> 00:44:33,360
that component? 
Yeah, I mean, just to, to add a 

836
00:44:33,360 --> 00:44:35,720
couple more points, Maddie, you 
mentioned Canada, but it's a bit

837
00:44:35,720 --> 00:44:37,720
funky, very North American 
focused. 

838
00:44:38,200 --> 00:44:40,880
Headquarters going to be breezy.
They're going to have. 

839
00:44:41,120 --> 00:44:44,200
The primary at the moment, yeah.
The primary listing will be ASX.

840
00:44:44,240 --> 00:44:47,360
That makes sense from a from a 
capital markets perspective with

841
00:44:47,360 --> 00:44:49,440
a secondary listing on the 
NASDAQ. 

842
00:44:49,440 --> 00:44:52,560
So not actually the NASDAQ. 
Yeah, well, that's where 

843
00:44:52,560 --> 00:44:57,160
Piedmont has a listing. 
So not actually Canadian listed,

844
00:44:57,160 --> 00:44:59,680
but obviously a very. 
Tech fucking on the the. 

845
00:44:59,760 --> 00:45:02,320
Tech exchange? 
Well is it hunting exchange? 

846
00:45:02,320 --> 00:45:04,480
Lithium has a sort of Ave into 
EV's. 

847
00:45:05,240 --> 00:45:09,960
Get creative. 
I mean, I think that sort of 

848
00:45:10,240 --> 00:45:12,640
came about from a sort of 
Carolina. 

849
00:45:12,640 --> 00:45:15,560
They've got an asset in, in the 
States there as well. 

850
00:45:15,760 --> 00:45:20,840
So and then there's that a 
warrior interest as well that 

851
00:45:20,840 --> 00:45:23,640
they they said about in in 
Africa, the pro. 

852
00:45:23,640 --> 00:45:26,800
Forma looks kind of more 
interesting with the yeah, 

853
00:45:26,880 --> 00:45:29,120
you've got the other like 
Carolina got its approvals 

854
00:45:29,160 --> 00:45:31,920
recently, you've got the yeah, 
the Ghanaian asset, which is 

855
00:45:32,440 --> 00:45:34,480
again, there's some, there's 
momentum there and you've tied 

856
00:45:34,480 --> 00:45:36,280
it up now. 
So the pro forma actually kind 

857
00:45:36,280 --> 00:45:40,000
of looks interesting ish. 
Importantly though, there's 

858
00:45:40,000 --> 00:45:43,480
going to be a bunch of kind of 
cash in there which buys them 

859
00:45:43,480 --> 00:45:45,480
time, right? 
In a depressed lithium market 

860
00:45:45,480 --> 00:45:49,800
that buys them more time and 
also importantly introduces RCF 

861
00:45:49,800 --> 00:45:53,960
as like a kind of 10% 
shareholder of the pro forma who

862
00:45:54,480 --> 00:45:57,720
is writing a big check, but also
has the ability to write another

863
00:45:57,720 --> 00:45:59,920
big check if they need to buy 
more time in the future as well.

864
00:46:00,320 --> 00:46:02,360
Yeah, that that's important. 
What do you what do you take of 

865
00:46:02,360 --> 00:46:04,640
their role in this, their 
involvement? 

866
00:46:04,640 --> 00:46:06,120
RCF. 
Super interesting. 

867
00:46:06,120 --> 00:46:07,960
Like yeah, honestly I find it 
really interesting. 

868
00:46:07,960 --> 00:46:11,880
I mean, like one of the really 
big wins RCF has had in recent 

869
00:46:11,880 --> 00:46:16,600
history was, was when Altura was
distressed and Pilgrim Minerals 

870
00:46:16,600 --> 00:46:21,080
kind of snivelled it up right 
before the right before the 

871
00:46:21,200 --> 00:46:23,200
lithium market turned. 
It was like a month before 

872
00:46:23,440 --> 00:46:26,600
lithium market turned and RCF 
kind of cornerstoned big equity.

873
00:46:26,600 --> 00:46:29,800
Like, you know, big equity kind 
of cornerstone position there to

874
00:46:29,800 --> 00:46:32,880
help facilitate the acquisition 
of voucher. 

875
00:46:33,200 --> 00:46:35,800
So everyone really remembers 
and, and in like no time, it was

876
00:46:35,800 --> 00:46:39,120
like a three times money on 
money and like like 10 months 

877
00:46:39,120 --> 00:46:41,880
from memory. 
It was just a huge win for for 

878
00:46:41,880 --> 00:46:44,840
RCF and so everyone remembers 
that in the head. 

879
00:46:44,840 --> 00:46:48,000
Big win for RCF that was like 
counter cyclical depressed 

880
00:46:48,000 --> 00:46:50,520
lithium market. 
Big, big, you know, 

881
00:46:50,520 --> 00:46:54,040
consolidation kind of equity 
like play for them. 

882
00:46:54,960 --> 00:46:59,080
This looks similarish lithium 
markets beaten up the you know, 

883
00:46:59,080 --> 00:47:02,240
there's two logical companies 
kind of coming together helps 

884
00:47:02,240 --> 00:47:05,320
them sort of buy more time. 
Hopefully the cycle picks up and

885
00:47:05,320 --> 00:47:08,800
makes the equity kind of look, 
you know, attractive over time. 

886
00:47:09,160 --> 00:47:11,800
No one can really time when the 
market turns perfectly. 

887
00:47:11,800 --> 00:47:14,120
But, you know, I'm sure, I'm 
sure everyone who's been a part 

888
00:47:14,120 --> 00:47:16,320
of that deal is sort of 
thinking, I hope this is like 

889
00:47:16,320 --> 00:47:18,560
the, you know, Pillbra gobbling 
up Altura sort of play. 

890
00:47:18,840 --> 00:47:23,200
Yeah, and it's it's whoever can 
survive if there is a turn, it's

891
00:47:23,200 --> 00:47:26,120
like you start getting paid for 
Strider. 

892
00:47:26,120 --> 00:47:28,000
Why? 
And specifically on North 

893
00:47:28,000 --> 00:47:31,920
American lithium, the asset, it 
was hindered by the by the 

894
00:47:31,920 --> 00:47:35,720
structure it was in with the, 
the economics there and the sort

895
00:47:35,720 --> 00:47:38,280
of skewed off take and 
ownership. 

896
00:47:38,560 --> 00:47:42,760
So yeah, hopefully this can, 
this will clear that all up and 

897
00:47:42,760 --> 00:47:46,080
they can just focus on getting 
those recoveries out, getting 

898
00:47:46,120 --> 00:47:48,680
yeah, getting the asset. 
They're still going to be losing

899
00:47:49,000 --> 00:47:51,000
free cash flow on it at the 
current lithium prices. 

900
00:47:51,000 --> 00:47:55,080
But yeah, you know, they've got 
greater capability to last 

901
00:47:55,080 --> 00:47:56,840
longer in the cycle. 
Now what's happening with 

902
00:47:56,880 --> 00:48:00,560
Mublin? 
Development asset, I mean, yeah,

903
00:48:00,640 --> 00:48:02,080
I. 
Mean on us Pardon. 

904
00:48:03,160 --> 00:48:06,960
Definitely is, yeah. 
Permitting will be the the 

905
00:48:06,960 --> 00:48:08,920
challenge. 
I mean, financing won't be a 

906
00:48:08,920 --> 00:48:12,240
walk in the park in this market 
either, but permitting's been 

907
00:48:12,240 --> 00:48:14,640
the big impediment. 
It's actually an attractive 

908
00:48:14,640 --> 00:48:17,080
asset, but yeah, permitting's 
the big challenge there. 

909
00:48:17,240 --> 00:48:19,800
Grade is much, much better than 
North American Lithium, though. 

910
00:48:19,920 --> 00:48:21,720
Once in production, once not, 
obviously, yeah. 

911
00:48:22,400 --> 00:48:25,840
So, yeah, I mean they just need 
to get the costs down at North 

912
00:48:25,840 --> 00:48:29,840
American Lithium to in the 
ballpark of the DFS that came 

913
00:48:29,840 --> 00:48:34,400
out in I think April 2023 is 
right now they're nowhere near 

914
00:48:34,400 --> 00:48:36,440
that. 
And also get the the revenue up.

915
00:48:36,440 --> 00:48:38,520
There's been a period of sort of
qualifying the product and all 

916
00:48:38,520 --> 00:48:41,160
those things. 
So just to make it, you know, go

917
00:48:41,160 --> 00:48:44,360
from a cash bleeding asset to 
something that's closer to break

918
00:48:44,360 --> 00:48:47,720
even, that'll be that'll be, you
know, first item on the shopping

919
00:48:47,720 --> 00:48:48,720
list. 
Very. 

920
00:48:48,720 --> 00:48:52,120
Good, that's it. 
That's a wrap. 

921
00:48:52,400 --> 00:48:55,640
It's funny that. 
What did you say yesterday, 

922
00:48:55,640 --> 00:48:59,000
Trevor? 
Oh I'm so not interested in 

923
00:48:59,000 --> 00:49:01,960
lithium anymore. 
The the the. 

924
00:49:02,840 --> 00:49:04,160
Market. 
Yeah. 

925
00:49:04,480 --> 00:49:08,440
The the future and oh, we've got
a lithium deal. 

926
00:49:12,240 --> 00:49:15,640
We'll see what comes to it. 
You know, it's a better time to 

927
00:49:15,640 --> 00:49:16,800
do a deal than it was a year 
ago. 

928
00:49:18,400 --> 00:49:20,080
I mean, more particularly if you
if you ask. 

929
00:49:20,080 --> 00:49:23,120
Yeah. 
Mate, I reckon I'll know who was

930
00:49:23,120 --> 00:49:26,360
behind that. 
Someone that moved over to North

931
00:49:26,360 --> 00:49:28,640
America recently. 
Interesting. 

932
00:49:28,760 --> 00:49:34,040
We'll share that one off air. 
He's a JC, he's a JC. 

933
00:49:34,040 --> 00:49:35,760
He is indeed if. 
You're listening and you know 

934
00:49:35,760 --> 00:49:39,560
who I'm talking about. 
You're a JC, Mr Person. 

935
00:49:40,680 --> 00:49:42,400
Jay. 
Speaking of JC, he's been to a 

936
00:49:42,400 --> 00:49:44,360
mining services absolutely jam 
packed. 

937
00:49:44,360 --> 00:49:50,120
Every bloody truck and digger is
full of a JCMMS grounded heading

938
00:49:50,120 --> 00:49:53,160
to Canada Crossbair. 
This is in the name Crowded 

939
00:49:53,160 --> 00:49:56,560
construction, Yeah. 
Have we mentioned? 

940
00:49:56,560 --> 00:49:57,680
That yet I. 
Don't know. 

941
00:49:58,440 --> 00:50:00,200
Grounded control. 
There you go. 

942
00:50:02,200 --> 00:50:05,800
Oh cross boundary energy. 
See if it grant support, CR 

943
00:50:05,800 --> 00:50:09,480
insurance, Gaydrill, dice sat 
and hoodoo money mods. 

944
00:50:11,080 --> 00:50:13,640
Information contained in this 
episode of Money of Mine is of 

945
00:50:13,640 --> 00:50:15,720
general nature only and does not
take into account the 

946
00:50:15,720 --> 00:50:19,320
objectives, financial situation,
or needs of any particular 

947
00:50:19,320 --> 00:50:21,360
person. 
Before making any investment 

948
00:50:21,360 --> 00:50:24,400
decision, you should consult 
with your financial advisor and 

949
00:50:24,400 --> 00:50:27,560
consider how appropriate the 
advice is to your objectives, 

950
00:50:27,760 --> 00:50:29,760
financial situation and needs.