1 00:00:00,360 --> 00:00:01,760 Right. Oh money mine is. 2 00:00:01,760 --> 00:00:04,240 We are kicking off your Monday with a bang. 3 00:00:04,240 --> 00:00:08,000 Three stories today, Min Rez, Ellison update quarterly, Name 4 00:00:08,000 --> 00:00:10,720 and Shame and Rio Tinto in Mongolia. 5 00:00:10,800 --> 00:00:12,440 What a start to the week trap. What? 6 00:00:12,880 --> 00:00:18,000 Dono, you, you gave it the Yeah, the righto that I remember when 7 00:00:18,000 --> 00:00:20,480 I've intro without Maddie. No one's happy when you don't 8 00:00:20,480 --> 00:00:21,200 start with the right. Oh. 9 00:00:21,520 --> 00:00:24,960 Oh God, I probably need another 50 decibels but that's OK. 10 00:00:26,000 --> 00:00:27,520 You and I today, Ali, how was your weekend? 11 00:00:27,680 --> 00:00:31,120 It was good, good buddy sorting stuff for weddings. 12 00:00:31,120 --> 00:00:34,720 All that and then back into it this week. 13 00:00:35,280 --> 00:00:36,920 So it was. It was better than better than 14 00:00:36,920 --> 00:00:38,080 the min Res boards weekend you reckon? 15 00:00:38,120 --> 00:00:40,160 I I think probably marginally better. 16 00:00:40,600 --> 00:00:42,960 Let's let's RIP the band aid off Trev. 17 00:00:42,960 --> 00:00:48,280 So yeah, update out today from Min Res as an update on 18 00:00:48,280 --> 00:00:51,000 corporate governance and and this ship succession. 19 00:00:51,000 --> 00:00:55,760 So take us through the high points and what it all means. 20 00:00:56,560 --> 00:00:59,200 It was a bit like, a bit like Christmas Eve waiting for the 21 00:00:59,200 --> 00:01:01,640 verdict and what was what was going to happen to, to Allison. 22 00:01:01,640 --> 00:01:04,959 And today we've got the verdict from the board because you know, 23 00:01:04,959 --> 00:01:07,240 last week they basically said, you know, we're going to provide 24 00:01:07,280 --> 00:01:09,880 more information about what the findings are and, and what our 25 00:01:09,880 --> 00:01:11,880 decisions are on the 4th of November. 26 00:01:12,160 --> 00:01:14,320 Keep in mind, it was only, it was only last trading day. 27 00:01:14,320 --> 00:01:17,240 I think it was the 31st of October that minerals like 28 00:01:17,240 --> 00:01:19,360 announced their quarterly and simultaneously announced that's 29 00:01:19,360 --> 00:01:20,960 all the gas to the Gino share price shot up. 30 00:01:20,960 --> 00:01:23,640 And now today the update on corporate governance share price 31 00:01:23,640 --> 00:01:26,880 tanks 10%. I mean, like it's just it's 32 00:01:26,880 --> 00:01:29,760 amazing the the the volatility you see mineral share price and 33 00:01:29,760 --> 00:01:34,120 kind of it also probably just like an underwrites how how 34 00:01:34,120 --> 00:01:36,840 paranal kind of our public markets are and how sensitive 35 00:01:36,840 --> 00:01:40,160 they are to just like sentiment and vibes in a lot of ways too. 36 00:01:40,160 --> 00:01:42,680 But the high notes, Ali, the high notes on what actually came 37 00:01:42,680 --> 00:01:45,720 out today. OK, Allison's going to stay on 38 00:01:45,720 --> 00:01:48,880 as MD for 12 to 18 months as the the board accelerates a 39 00:01:48,880 --> 00:01:52,680 succession plan. Allison is going to incur board 40 00:01:52,680 --> 00:01:56,040 imposed financial penalties of of 8.8 million consisting of 41 00:01:56,040 --> 00:02:00,040 $3.8 million to be paid to min res and a $5,000,000 donation to 42 00:02:00,040 --> 00:02:02,080 charity staged in $1 million increments over the years. 43 00:02:02,600 --> 00:02:06,920 Allison's unvested Ltis and and STIs will immediately be 44 00:02:06,920 --> 00:02:09,840 forfeited and the proposed award percent incentives at the 45 00:02:09,840 --> 00:02:13,200 upcoming AGM will be withdrawn. Collectively that could be up to 46 00:02:13,200 --> 00:02:15,600 $9.6 million in in remuneration there. 47 00:02:16,320 --> 00:02:20,000 And the chair James Mcclements will be departing the board as 48 00:02:20,000 --> 00:02:23,920 well by the next AGM. And there's like where's the 49 00:02:23,920 --> 00:02:25,520 effect that board evolution will continue. 50 00:02:25,520 --> 00:02:29,360 So sort of expect more turnover on the board front in due course 51 00:02:29,360 --> 00:02:30,960 to to play out as well. Yeah. 52 00:02:30,960 --> 00:02:34,840 And the share price, I mean, look at the chart today, right, 53 00:02:34,840 --> 00:02:39,240 There's a pretty, pretty dramatic drop, yeah, on open. 54 00:02:39,240 --> 00:02:42,240 And then it sort of slowly recovered a little bit, but sort 55 00:02:42,240 --> 00:02:46,240 of lost at most around 10% earlier today, didn't it? 56 00:02:46,240 --> 00:02:50,680 A. 100% so in which you want to like deduce like what's the what 57 00:02:50,680 --> 00:02:52,600 are the forward looking consequences of the governance 58 00:02:52,600 --> 00:02:55,720 kerfuffle that has engulfed corporate Australia's attention 59 00:02:56,640 --> 00:02:58,800 engulfed my attention. I'm like, I'm hooked, maybe 60 00:02:58,800 --> 00:03:00,040 rightfully or wrongfully, but I'm hooked. 61 00:03:01,080 --> 00:03:04,600 And like you, you look at the share price, it's come off. 62 00:03:04,600 --> 00:03:07,720 It's been volatile as all hell. I'm kind of curious, Ali, 63 00:03:08,000 --> 00:03:11,560 before, before I sort of give my, my takes, you're a Ding, 64 00:03:11,560 --> 00:03:13,240 Ding, Ding. I'm in res you've I am, you've 65 00:03:13,240 --> 00:03:16,200 owned this stuff for a while. How do you actually feel as a 66 00:03:16,200 --> 00:03:20,000 shareholder in in response to what the Board has actually come 67 00:03:20,000 --> 00:03:22,160 out with today and the market's response to? 68 00:03:22,280 --> 00:03:24,360 Yeah. Look, it's, it's an interesting 69 00:03:24,360 --> 00:03:28,800 one, right? And I've trying to balance, 70 00:03:29,560 --> 00:03:33,280 yeah, this say from a min res perspective, you know, the need 71 00:03:33,280 --> 00:03:36,760 to sort of take appropriate actions to address these, you 72 00:03:36,760 --> 00:03:41,320 know, very important governance issues, but also trying to 73 00:03:41,320 --> 00:03:46,280 retain some sort of near term level of stability in the 74 00:03:46,280 --> 00:03:50,160 business and, you know, confidence in the, in the board 75 00:03:50,160 --> 00:03:52,680 and the company's plans going forward. 76 00:03:52,680 --> 00:03:56,120 It's, it's, it's quite a tricky 1 to do. 77 00:03:56,720 --> 00:04:00,520 And overall, I think the, the response from the board was 78 00:04:00,720 --> 00:04:05,360 reasonably strong, perhaps more than I think people expected or 79 00:04:05,360 --> 00:04:09,600 I personally expected. I think the leadership 80 00:04:09,600 --> 00:04:14,560 transition component in my view was sort of an attempt to like 81 00:04:14,760 --> 00:04:18,680 strike this balance I've just spoke about before because you 82 00:04:18,680 --> 00:04:22,480 sort of think, you know, if they let Chris go straight away, you 83 00:04:22,480 --> 00:04:25,440 know, would this have perhaps created a lot, eroded a lot more 84 00:04:25,440 --> 00:04:28,440 value, created more instability, you know, in the short term. 85 00:04:29,200 --> 00:04:32,160 But in saying that, you know, 12 to 18 months is also a long 86 00:04:32,160 --> 00:04:36,680 time, you know, and, you know, markets are pretty myopic. 87 00:04:36,680 --> 00:04:39,640 So you know, that might weigh further on the stock too. 88 00:04:40,200 --> 00:04:42,440 And you know, today's announcements addressed, you 89 00:04:42,440 --> 00:04:45,800 know, a range of things, it's addressed a fair bit and it's 90 00:04:45,800 --> 00:04:49,440 sort of set out, you know, a plan or some sort of a plan 91 00:04:49,440 --> 00:04:52,560 going forward. But there's still, you know, 92 00:04:52,560 --> 00:04:54,680 there's, as they say in the announcement, there's still 93 00:04:54,680 --> 00:04:57,040 certain things they're completing enquiries on. 94 00:04:57,320 --> 00:05:00,200 So therefore, there's still some unknowns. 95 00:05:01,240 --> 00:05:06,560 So personally, I've got mixed feelings to be honest. 96 00:05:07,080 --> 00:05:09,960 And this is all while the business is experiencing 97 00:05:10,120 --> 00:05:13,680 commodity price headwinds, balance sheet pressure, which 98 00:05:13,720 --> 00:05:17,000 you know, is somewhat alleviated by the, the gas deal with, with 99 00:05:17,000 --> 00:05:20,960 Jana last week. You know, it's, it's a step in a 100 00:05:20,960 --> 00:05:25,640 direction, but I feel like there's still a lot of, you 101 00:05:25,640 --> 00:05:27,640 know, water to go under the bridge. 102 00:05:28,240 --> 00:05:32,360 Yeah, yeah, big time. There's as as it seems like 103 00:05:32,360 --> 00:05:34,560 every single day that goes by, there's new talking points in 104 00:05:34,560 --> 00:05:36,160 amongst the. The announcement actually came 105 00:05:36,160 --> 00:05:42,400 out today, yeah, including a litany of of new use the word 106 00:05:42,400 --> 00:05:44,080 allegations. But in reality, that seems like 107 00:05:44,080 --> 00:05:48,320 admissions which have have surfaced both in the media and 108 00:05:48,320 --> 00:05:51,600 in Minarez's own statement, which kind of are incredibly 109 00:05:51,800 --> 00:05:54,760 damning in their own own right. So over the weekend, they if I 110 00:05:54,760 --> 00:05:58,200 revealed that Allison and some of the early execs were were 111 00:05:58,200 --> 00:06:01,360 renting properties to Minarez well above market rate with 112 00:06:01,360 --> 00:06:02,880 aggressive rental hikes along the journey. 113 00:06:03,600 --> 00:06:05,720 There was another article that detailed that, you know, the 114 00:06:05,720 --> 00:06:07,960 whole kind of deplorable set of circumstances around the Kelly 115 00:06:07,960 --> 00:06:12,520 Metals series of events was revealed that Minarez's in house 116 00:06:12,520 --> 00:06:15,280 execs, including the CFO, Mark Wilson, Yan Ong and Josh Sterler 117 00:06:15,280 --> 00:06:17,080 were all participants in that IPO. 118 00:06:18,520 --> 00:06:21,160 But what I actually think is the the most damning of all of the 119 00:06:21,160 --> 00:06:23,240 things to kind of come out in the last couple of days is this 120 00:06:23,240 --> 00:06:25,480 one paragraph in Munoz's announcement today, which 121 00:06:25,920 --> 00:06:27,840 honestly have to work to read word for word. 122 00:06:28,360 --> 00:06:31,240 It says the board has also concluded that Mister Allison on 123 00:06:31,240 --> 00:06:34,360 occasions used company resources for his personal benefit. 124 00:06:34,760 --> 00:06:38,400 This is included directing company employees to work on his 125 00:06:38,400 --> 00:06:42,280 boat and properties, directing a company employee to manage his 126 00:06:42,280 --> 00:06:46,400 personal finances, and using the company to procure goods and 127 00:06:46,400 --> 00:06:51,160 services for his private use. The Board is satisfied that the 128 00:06:51,160 --> 00:06:54,000 use of Minrez resources and assets in this way was not has 129 00:06:54,000 --> 00:06:57,240 not caused material financial detriment to the Company. 130 00:06:58,040 --> 00:07:00,640 Where Mr Allison has used the Company to procure goods and 131 00:07:00,640 --> 00:07:04,080 services, procedures existed to ensure that he paid the Company 132 00:07:04,120 --> 00:07:06,000 for these goods and services. Wow. 133 00:07:06,440 --> 00:07:08,600 That's a fucking staggering statement, Ellie. 134 00:07:08,600 --> 00:07:10,200 Like. And I mean it. 135 00:07:11,000 --> 00:07:14,160 And there's no real detail on the actual quantum no in the 136 00:07:14,160 --> 00:07:16,440 announcement, no. Procure goods and services for 137 00:07:16,440 --> 00:07:19,200 his private use, that is, it's such a broad sentence. 138 00:07:19,240 --> 00:07:22,600 It it it appears to me like the Tronic kind of front run, what 139 00:07:22,760 --> 00:07:25,400 the future kind of allegations might actually be here with a 140 00:07:25,400 --> 00:07:27,760 bit of a broad brush statement that might be a bit of a catch 141 00:07:27,760 --> 00:07:29,520 all. And it de escalates things and 142 00:07:29,640 --> 00:07:33,840 categorises it as as old news as as maybe new articles surface to 143 00:07:33,840 --> 00:07:36,400 that end. But but I mean, it's just a 144 00:07:36,400 --> 00:07:39,960 crazy it's a crazy like it's a crazy admission. 145 00:07:40,280 --> 00:07:43,200 I just think it's such a damning admission in and of itself as 146 00:07:43,200 --> 00:07:47,680 well. Like, like what, you know, a 147 00:07:47,680 --> 00:07:51,280 bunch of our listeners, a huge amount of our listeners work in 148 00:07:51,600 --> 00:07:53,320 the industry. They work for mining companies 149 00:07:53,320 --> 00:07:55,040 or, or whatnot. What would happen to any one of 150 00:07:55,040 --> 00:07:59,520 them if, if it just so happened that, that they started just 151 00:07:59,520 --> 00:08:01,480 putting personal expenses on the, on the company card? 152 00:08:02,240 --> 00:08:04,000 Oh, you get fucking fired. You'd have to pay it all back 153 00:08:04,000 --> 00:08:06,400 and you'd be sacked too. It's just crazy. 154 00:08:06,400 --> 00:08:09,560 And like you said, there's no, there's no detail in that 155 00:08:09,880 --> 00:08:14,160 paragraph which actually states what the number is of, of 156 00:08:14,160 --> 00:08:16,120 resources that were actually kind of, you know, allocated 157 00:08:16,120 --> 00:08:20,760 from company, company funds to Chris's personal use case. 158 00:08:21,080 --> 00:08:23,320 Yeah. And I mean, they've obviously 159 00:08:23,400 --> 00:08:28,480 made a determination that they believed well in their words, 160 00:08:28,480 --> 00:08:31,520 you know, has not caused material financial detriment to 161 00:08:31,520 --> 00:08:34,559 the company. You know, that's more like a 162 00:08:34,559 --> 00:08:38,720 quantum definition of of material or, you know, value, 163 00:08:38,720 --> 00:08:43,039 but one could argue could be material in nature. 164 00:08:43,760 --> 00:08:44,640 Sure. Yeah, yeah. 165 00:08:44,640 --> 00:08:48,440 And and on your point on materiality as well, like I've 166 00:08:48,440 --> 00:08:53,120 publicly taken issue with the ways that this company has has 167 00:08:53,120 --> 00:08:55,120 determined what isn't isn't material in the past. 168 00:08:56,320 --> 00:08:58,320 Chris himself has said in the past, you know, I'm never going 169 00:08:58,320 --> 00:09:00,400 to tell you how much we paid for Bald Hill, things like that, 170 00:09:00,400 --> 00:09:04,280 right, which other people could argue were material at the time. 171 00:09:05,000 --> 00:09:06,520 We're not disclosed to the public. 172 00:09:06,520 --> 00:09:11,320 So there's do we always believe what the company tells us is 173 00:09:11,320 --> 00:09:13,240 material versus not material? We supposed to just take their 174 00:09:13,240 --> 00:09:15,560 word for it. I think the board needs to 175 00:09:15,560 --> 00:09:17,240 disclose what the number is, right? 176 00:09:17,240 --> 00:09:18,720 That's kind of just how I see it. 177 00:09:18,720 --> 00:09:20,800 I think that's an important thing because how are you 178 00:09:20,800 --> 00:09:25,160 supposed to assess if the financial punishment here is 179 00:09:25,160 --> 00:09:28,760 appropriate if you don't know how much money was actually, you 180 00:09:28,760 --> 00:09:30,840 know, misappropriated in the first place? 181 00:09:31,400 --> 00:09:34,200 That's that's kind of like So what what we've got today is. 182 00:09:34,600 --> 00:09:36,760 What actually was that? That they sort of set out the 183 00:09:36,760 --> 00:09:39,000 board. Yeah, they, they, they said 184 00:09:39,040 --> 00:09:42,040 18,000,000, like if you add, add it all up, call it, you know, 185 00:09:42,040 --> 00:09:44,680 roughly $18 million of, of financial punishment here. 186 00:09:44,680 --> 00:09:47,120 But I don't think much of that is actually like real money. 187 00:09:47,120 --> 00:09:51,080 So you got $3.8 million of cash is to be repaid to Minrez. 188 00:09:51,400 --> 00:09:53,480 That's kind of like the only money in there that I'd 189 00:09:53,480 --> 00:09:57,640 categorise as like real cash punishment because that's for, 190 00:09:58,480 --> 00:10:00,600 that's for the Far East payments, which sort of 191 00:10:00,600 --> 00:10:03,080 happened, OK, as as many as like 20 years ago. 192 00:10:03,080 --> 00:10:05,920 But it doesn't include interest expense on those payments. 193 00:10:05,920 --> 00:10:08,200 It's been like 20 years of like inflation like in, you know, 194 00:10:08,200 --> 00:10:10,280 interest should probably be applied to that in other self. 195 00:10:10,720 --> 00:10:14,120 Then you got $5,000,000 charitable charitable 196 00:10:14,120 --> 00:10:16,880 contribution staged in $1 million payments per year. 197 00:10:17,640 --> 00:10:20,880 Like charitable contribution. What does that mean? 198 00:10:20,920 --> 00:10:23,800 What? Does that mean like is could he 199 00:10:23,800 --> 00:10:27,120 get away with, you know, donating that money to a charity 200 00:10:27,120 --> 00:10:30,160 that one of these related parties has created, for 201 00:10:30,160 --> 00:10:33,760 example, like, like how is how is he going to get a tax 202 00:10:33,760 --> 00:10:35,200 deduction on that charitable contribution? 203 00:10:35,200 --> 00:10:38,040 Like I think some parameters around that, the mechanism here 204 00:10:38,040 --> 00:10:40,280 are important in order to actually like, like, how else 205 00:10:40,280 --> 00:10:42,600 are you supposed to assess if what the board has come down 206 00:10:42,600 --> 00:10:45,040 with here as punishment is actually appropriate for the 207 00:10:45,040 --> 00:10:48,880 litany of allegations, PR and admissions, by the way, that 208 00:10:48,880 --> 00:10:52,400 about, about Allison and you know, his activities. 209 00:10:54,040 --> 00:10:58,640 And then you've got up to $9.6 million in, in incentives in 210 00:10:58,640 --> 00:11:00,640 these STIs and LTIS which are forfeited. 211 00:11:01,040 --> 00:11:05,640 That's a fair game. Like they, in my opinion, ought 212 00:11:05,640 --> 00:11:07,880 to lapse if you depart the company as a bad lever. 213 00:11:07,880 --> 00:11:10,480 Like these are like, you know, standard clauses in in your 214 00:11:10,480 --> 00:11:12,840 incentive programmes when you leave the company as a bad 215 00:11:12,840 --> 00:11:15,960 lever, you, you know, your unvested performance rights 216 00:11:15,960 --> 00:11:18,240 lapse, that's just they're forfeited. 217 00:11:18,720 --> 00:11:22,240 Should we actually be including that there is part of the the 218 00:11:22,240 --> 00:11:23,880 quantifiable financial punishment to Chris? 219 00:11:23,960 --> 00:11:27,880 I just, I just think there's it's kind of hard to to provide 220 00:11:27,880 --> 00:11:29,480 commentary on the appropriateness of the financial 221 00:11:29,480 --> 00:11:32,840 punishment if we actually don't know the financial quantum of. 222 00:11:32,880 --> 00:11:35,240 You don't have all the information at hand, right? 223 00:11:35,560 --> 00:11:36,720 Yeah. And I don't think taking the 224 00:11:36,720 --> 00:11:39,040 headline values included here are the appropriate numbers to 225 00:11:39,040 --> 00:11:42,320 actually use to, to to talk about the financial punishment 226 00:11:42,320 --> 00:11:46,280 either because it's just that's in my opinion, not real money. 227 00:11:47,440 --> 00:11:50,200 And I mean, what, what's your views on the, the transition 228 00:11:50,200 --> 00:11:55,640 period, firstly as as an approach as opposed to, you 229 00:11:55,640 --> 00:12:00,200 know, just just letting Chris go today versus, you know, over a 230 00:12:00,200 --> 00:12:02,960 period of time, but then also the the period itself. 231 00:12:02,960 --> 00:12:05,280 What are your thoughts on that? I. 232 00:12:05,320 --> 00:12:09,080 Think. I think a cynic could argue 233 00:12:09,080 --> 00:12:12,280 that, yeah, 12 to 18 months is a is a hell of a long time to 234 00:12:12,280 --> 00:12:14,720 source an appropriate successor. And you know, you can you can 235 00:12:14,720 --> 00:12:17,440 fairly ask a question like why why would it take that long? 236 00:12:17,960 --> 00:12:20,120 I think if you look at what's the commentary that's been 237 00:12:20,120 --> 00:12:24,640 provided to the media and in in an article that's already gone 238 00:12:24,640 --> 00:12:28,200 up is 13 of the 15 largest shareholders were pretty keen on 239 00:12:28,480 --> 00:12:31,200 on Chris staying around for this like transition period to 240 00:12:31,200 --> 00:12:32,720 provide stability like you talked about. 241 00:12:33,080 --> 00:12:36,280 You can see it from both lenses, but I don't I don't actually 242 00:12:36,720 --> 00:12:40,520 like like him transitioning out of company in 12 to 18 months 243 00:12:40,520 --> 00:12:46,520 time is like, why does he have to do that in remain as MD, for 244 00:12:46,520 --> 00:12:50,000 example, why can't one of the maybe one of the board members 245 00:12:50,000 --> 00:12:54,240 who might be newer pop in as an interim, an interim MD and Chris 246 00:12:54,240 --> 00:12:57,360 has to report to her like over the next 12 to 18 months, for 247 00:12:57,360 --> 00:12:59,000 example. So you can have the stability 248 00:12:59,000 --> 00:13:02,480 required, but you also potentially have the someone 249 00:13:02,480 --> 00:13:04,600 who's cleaning up the mess, who's accountable for that and 250 00:13:04,600 --> 00:13:08,000 maybe hasn't been like caught up in all of the all of the the 251 00:13:09,320 --> 00:13:10,800 deplorable kind of things that we're seeing here. 252 00:13:10,920 --> 00:13:14,640 Yeah, it's it that's it's just such a tricky thing just trying 253 00:13:14,640 --> 00:13:21,920 to strike that balance of yeah, the stability or what we can 254 00:13:21,920 --> 00:13:24,520 perceive as trying to achieve stability. 255 00:13:24,880 --> 00:13:31,000 But you know, just moving on to the to the next step and the and 256 00:13:31,000 --> 00:13:35,800 the in the future of Min Rez as well without, you know, having 257 00:13:35,800 --> 00:13:38,560 to take hopefully too, too long as as well. 258 00:13:40,160 --> 00:13:44,600 Yeah, it's, there's so many different ways you can slice and 259 00:13:44,600 --> 00:13:46,680 dice it trying to balance those two things. 260 00:13:47,000 --> 00:13:50,760 Yeah, there's, there's this attestation in the announcement 261 00:13:50,760 --> 00:13:53,080 Ali, which I wanted to read specifically as well. 262 00:13:53,080 --> 00:13:55,480 It says Mr Allison has apologised to the board. 263 00:13:55,480 --> 00:13:59,320 He has confirmed that there are no matters not already known to 264 00:13:59,320 --> 00:14:02,720 the board for him to disclose that would or could bear upon 265 00:14:02,720 --> 00:14:05,280 whether he is fit and proper person to continue the role as 266 00:14:05,280 --> 00:14:08,360 Managing director. And there are no undisclosed 267 00:14:08,360 --> 00:14:11,280 transactions between the company or its subsidiaries and entities 268 00:14:11,280 --> 00:14:14,840 associated with. Interesting, very interesting 269 00:14:14,840 --> 00:14:17,760 statement. And like, my instincts tell me 270 00:14:17,760 --> 00:14:20,200 that the, the media pressure is not going anywhere. 271 00:14:20,200 --> 00:14:23,040 It's been like consistent throughout. 272 00:14:23,880 --> 00:14:27,080 There's yeah, stuff popping up already in response to, to, to 273 00:14:27,080 --> 00:14:31,160 this. So, but like, if what is being 274 00:14:31,160 --> 00:14:35,200 spotlighted today by the press is the tip of the iceberg and 275 00:14:35,200 --> 00:14:37,840 that there are there's like, you know, more to come. 276 00:14:37,840 --> 00:14:42,400 What are the implications to to to Chris Allison based on that 277 00:14:42,400 --> 00:14:44,920 attestation that he has provided the board and the board has has 278 00:14:44,920 --> 00:14:46,560 written in words in this announcement today. 279 00:14:46,880 --> 00:14:49,880 Because if more things come up, it's more damning in nature or 280 00:14:49,880 --> 00:14:52,920 equally damning in nature that hasn't been kind of disclosed 281 00:14:52,920 --> 00:14:57,360 yet. Like it's almost a a like that's 282 00:14:57,600 --> 00:15:01,320 that's that's the recipe to have to depart far a fair bit earlier 283 00:15:01,320 --> 00:15:03,520 than 12 to 18 months If if more damning things surface. 284 00:15:03,520 --> 00:15:04,720 I think Ellie. Yeah. 285 00:15:04,720 --> 00:15:08,080 And look, there's quite a quite a few takes or different 286 00:15:08,080 --> 00:15:14,000 perspectives sort of from across the landscape today. 287 00:15:14,600 --> 00:15:16,320 Take us through a few of them, Trev. 288 00:15:17,920 --> 00:15:20,240 All right, I'll share a couple of things that are are popping 289 00:15:20,240 --> 00:15:21,200 up around the ground. Sally. 290 00:15:23,000 --> 00:15:24,840 Chuck Chunda says spot the company with corporate 291 00:15:24,840 --> 00:15:28,200 governance issues, and he's got a a map of companies by market 292 00:15:28,200 --> 00:15:30,200 cap on ASX. And the bright red one there is, 293 00:15:30,360 --> 00:15:33,400 of course, Minrez. Roland, who's been providing 294 00:15:33,400 --> 00:15:36,440 some unfiltered commentary on LinkedIn, says the Minarez saga 295 00:15:36,440 --> 00:15:39,160 has followed the trajectory of all major PR disasters. 296 00:15:39,360 --> 00:15:40,680 Wrongdoing followed by concealment. 297 00:15:40,680 --> 00:15:42,160 Obscuration followed by discovery. 298 00:15:42,160 --> 00:15:44,640 Revelation followed by scandal. Denial followed by stubbornness. 299 00:15:44,880 --> 00:15:46,800 Song and dance followed by capitulation. 300 00:15:47,280 --> 00:15:51,040 James Thompson writes Almost any of the examples above would be 301 00:15:51,040 --> 00:15:53,920 grounds to immediately sack Allison and virtually any other 302 00:15:53,920 --> 00:15:56,520 organisation in this country. And then later in his article 303 00:15:56,560 --> 00:15:59,840 call, he says. But surely this is a good 304 00:15:59,840 --> 00:16:03,920 example of investor Stockholm syndrome, as you'll see talking 305 00:16:03,920 --> 00:16:07,760 to the fact that shareholders want him to hang around, and 306 00:16:07,760 --> 00:16:10,920 then Speaking of what shareholders actually think. 1 307 00:16:10,920 --> 00:16:14,720 of Minrez's shareholders with a 6.4% interest in the country is 308 00:16:14,720 --> 00:16:18,720 activists hedge fund L1 Capital. They have been quoted on record 309 00:16:18,720 --> 00:16:21,200 as saying. As the largest shareholder in 310 00:16:21,200 --> 00:16:24,520 Minrez after Chris Ellison, L1 Capital is supportive of 311 00:16:24,520 --> 00:16:26,800 strengthened corporate governance protocols and 312 00:16:26,800 --> 00:16:28,720 oversight. L1 Capital is supportive of 313 00:16:28,720 --> 00:16:31,720 Chris Ellison remaining as CEO with a more appropriate 314 00:16:31,720 --> 00:16:33,240 corporate governance structure in place. 315 00:16:34,200 --> 00:16:37,720 We've engaged with many large mean shareholders in recent days 316 00:16:37,920 --> 00:16:40,040 and we understand there is widespread shareholder support 317 00:16:40,040 --> 00:16:43,480 for Chris remaining as CEO over the medium term given his track 318 00:16:43,480 --> 00:16:46,560 record of delivering enormous shareholder value over many 319 00:16:46,680 --> 00:16:49,680 years. And that's a fairpoint, but it's 320 00:16:50,680 --> 00:16:53,480 to what end as well, right, Because I think that's like the 321 00:16:53,480 --> 00:16:57,640 whole the whole thing for the long term in red shareholders to 322 00:16:57,960 --> 00:17:05,520 grasp and grapple with is for so long you've glorified this 323 00:17:05,599 --> 00:17:08,880 charismatic founder as a founder LED business who's been on your 324 00:17:08,880 --> 00:17:10,880 team. The revelations that are coming 325 00:17:10,880 --> 00:17:13,119 out now. It's like, no, maybe he wasn't 326 00:17:13,119 --> 00:17:14,839 actually always specifically on my team. 327 00:17:14,839 --> 00:17:18,200 Maybe, maybe he was on his team. Yeah. 328 00:17:18,200 --> 00:17:21,040 And I think it's just coming, coming to terms with that, 329 00:17:21,040 --> 00:17:23,240 right. And you know, you see the L1 330 00:17:23,240 --> 00:17:27,920 guys here, you know, they're sort of saying that the the more 331 00:17:27,920 --> 00:17:30,320 appropriate governance structures in place perhaps is 332 00:17:30,680 --> 00:17:33,600 enough for them to sort of remain comfortable for for 333 00:17:33,600 --> 00:17:34,840 others it's not. And. 334 00:17:35,240 --> 00:17:37,520 To be fair, like I want capital, they're not the sort of 335 00:17:37,520 --> 00:17:40,800 shareholder that like buy stock and sits in it for two years. 336 00:17:41,000 --> 00:17:44,280 They're like in and out kind of shareholders. 337 00:17:45,320 --> 00:17:47,560 They'll be writing it until some catalyst and then leaving. 338 00:17:47,560 --> 00:17:49,760 So, but there are other many other shareholders on that 339 00:17:49,760 --> 00:17:51,200 register who have been around for a very long time. 340 00:17:52,400 --> 00:17:55,760 And then the last perspective on I want to share is from dry 341 00:17:55,760 --> 00:17:58,960 Blower, who's put out an article already kind of spreaking the 342 00:17:58,960 --> 00:18:00,400 merit of a Glencore takeover here. 343 00:18:00,880 --> 00:18:04,480 OK, but why does dry blower think that? 344 00:18:04,640 --> 00:18:06,480 I think it's it's an interesting proposition, but I don't think 345 00:18:06,480 --> 00:18:09,840 Glencore are going to come sort of save the day for university 346 00:18:09,840 --> 00:18:12,320 shareholders anytime soon for a bunch of reasons. 347 00:18:12,320 --> 00:18:15,200 Like one, like the bare own balance sheet is somewhat 348 00:18:15,200 --> 00:18:18,000 restrictive at the moment to now consider what it would look like 349 00:18:18,000 --> 00:18:20,280 if they did. The debt fund and acquisition 350 00:18:20,280 --> 00:18:24,040 have been raised, including assuming in Rez's existing debt 351 00:18:24,040 --> 00:18:26,320 as well. They're not going to equity fund 352 00:18:26,320 --> 00:18:29,240 an acquisition. And I think Glenn Gore's got 353 00:18:29,240 --> 00:18:31,880 time on their side as well. You don't like like you don't 354 00:18:31,880 --> 00:18:35,760 have to rush into something here like, yeah, you've got you got 355 00:18:35,760 --> 00:18:38,840 time on your side. The one possibility out there I 356 00:18:38,840 --> 00:18:41,760 think you can just never quite rule out is what Gina does or 357 00:18:41,760 --> 00:18:43,800 doesn't do. On Friday, she was calling Chris 358 00:18:43,800 --> 00:18:47,320 a friend, but what price does she turn to Chris and suggest, 359 00:18:47,320 --> 00:18:50,040 do you want to just take this company private again? 360 00:18:50,280 --> 00:18:53,600 Right, Because I'm pick if if you're if you got all of this 361 00:18:53,600 --> 00:18:57,760 public spotlight and you don't want it and being private is 362 00:18:58,240 --> 00:18:59,600 what a wonderful thing to have again. 363 00:19:00,120 --> 00:19:03,400 And yeah, none other than than Gina Rinehart and her like many, 364 00:19:03,400 --> 00:19:05,760 many billions of dollars could facilitate that. 365 00:19:05,760 --> 00:19:08,280 But you wouldn't be baking that in as your base case. 366 00:19:08,760 --> 00:19:10,280 No. Just ask lying down shareholders 367 00:19:10,280 --> 00:19:13,320 what that's like so. Yeah, no, no, it's a fascinating 368 00:19:13,320 --> 00:19:14,880 1. I mean, I mean, she's certainly 369 00:19:14,880 --> 00:19:18,480 got enough cash to do it. But you know, whether she she 370 00:19:18,760 --> 00:19:22,240 feels like that those assets and and services businesses are, you 371 00:19:22,240 --> 00:19:25,760 know, appropriate for Hancock's a whole another question, right? 372 00:19:27,720 --> 00:19:29,560 You never know. You never know. 373 00:19:29,800 --> 00:19:31,200 You never know, Ellie. You never know. 374 00:19:32,040 --> 00:19:34,400 Oh, look, I mean, I'd just be imagining, you know what, what 375 00:19:34,400 --> 00:19:37,760 it must feel like for the for the min res board at the minute, 376 00:19:37,760 --> 00:19:40,880 you know, navigating all of this under some immense pressure, 377 00:19:40,880 --> 00:19:42,600 right? It would it would probably feel 378 00:19:42,600 --> 00:19:45,040 like the roof is is falling in on them to be honest. 379 00:19:45,040 --> 00:19:47,240 Ellie. Very intense 1. 380 00:19:47,240 --> 00:19:50,520 I wonder, I do wonder if Sandvik's ground support could 381 00:19:50,520 --> 00:19:52,280 actually alleviate that. Ellie. 382 00:19:52,280 --> 00:19:54,800 Oh, that's a good shout. You know it does actually stop 383 00:19:54,800 --> 00:19:57,880 the roof from falling in in in other applications underground 384 00:19:57,880 --> 00:20:00,400 mines all over the globe. They choose Sandvik ground 385 00:20:00,400 --> 00:20:01,680 support to keep their workers safe. 386 00:20:01,680 --> 00:20:03,000 Get. Reliable deliveries of bolts, 387 00:20:03,000 --> 00:20:05,320 mesh and all the ground support accessories you could possibly 388 00:20:05,320 --> 00:20:08,240 think of. So in fact, I actually, I 389 00:20:08,240 --> 00:20:10,880 actually spoke with several underground workers in in mines 390 00:20:10,880 --> 00:20:12,800 that rely on sanity ground support. 391 00:20:12,800 --> 00:20:13,640 And you know what they said, Ellie? 392 00:20:13,680 --> 00:20:14,720 What did they say? Said. 393 00:20:14,720 --> 00:20:18,120 I feel safe, I feel protected. I feel free. 394 00:20:19,160 --> 00:20:20,720 I bet that's all you want to hear, right? 395 00:20:20,720 --> 00:20:24,080 Especially working underground is, you know, it's a pretty 396 00:20:24,080 --> 00:20:27,120 scary thing and that's all you want to feel safe and protected. 397 00:20:27,640 --> 00:20:29,320 I bet the board Mendrez wishes they felt that way. 398 00:20:29,320 --> 00:20:32,360 Maybe it's not too late for them to Chuck ADSI order. 399 00:20:32,360 --> 00:20:33,760 And it's not too late for you either. 400 00:20:34,040 --> 00:20:35,680 Give Derek, Kurt and his team a call. 401 00:20:36,080 --> 00:20:38,520 Stock up on some Sandvik ground support money minus all. 402 00:20:39,760 --> 00:20:41,320 Righty. Good work, Trev. 403 00:20:42,040 --> 00:20:44,280 Now it's that time of year again. 404 00:20:44,320 --> 00:20:46,880 It's it's quarterly's name. Shame. 405 00:20:46,880 --> 00:20:50,440 So for those companies who basically put their quarter 406 00:20:50,680 --> 00:20:55,920 quarterly at the absolute latest time on the last day possible. 407 00:20:55,920 --> 00:20:57,960 So no, we didn't forget, even though the quarterly's 408 00:20:57,960 --> 00:21:01,520 technically finished last Thursday, you know, half of them 409 00:21:01,520 --> 00:21:04,240 put put them out on the on the last day of the month. 410 00:21:04,440 --> 00:21:08,680 But crazily, something like almost 100 companies not only 411 00:21:08,680 --> 00:21:12,120 put them on the last day out, but aftermarket on the last day 412 00:21:12,120 --> 00:21:13,960 out, which just baffles the mind. 413 00:21:14,400 --> 00:21:17,680 And I feel like this segment just absolutely reminds me of 414 00:21:18,280 --> 00:21:21,400 for those who are familiar with Frank's Costanza's Festivus 415 00:21:21,400 --> 00:21:24,120 scene in Seinfeld. I don't think I've seen this 416 00:21:24,120 --> 00:21:25,600 actually. I'll play it for. 417 00:21:26,280 --> 00:21:30,600 You tradition of Festivus begins with the Airing of Grievances. 418 00:21:31,160 --> 00:21:33,160 I got a lot of problems with you people. 419 00:21:34,080 --> 00:21:35,880 Now you're going to hear about it. 420 00:21:36,320 --> 00:21:41,000 Yo, Kroger, my son tells me your company stinks. 421 00:21:44,000 --> 00:21:45,200 What? You get yours in a minute, 422 00:21:46,560 --> 00:21:49,840 Kroger. You couldn't smooth a soaked 423 00:21:49,840 --> 00:21:52,040 sheet if you had a hot date with a babe. 424 00:21:55,040 --> 00:21:59,880 I lost my train of thought. Oh, gosh. 425 00:22:00,200 --> 00:22:05,240 All right, let's let's do it. We're Oh yeah, I feel like 426 00:22:05,240 --> 00:22:07,800 there's some repeat offenders on this list, which is appalling to 427 00:22:07,800 --> 00:22:10,280 see to be honest. Oh God all right, so let's yeah 428 00:22:10,280 --> 00:22:14,000 let's do a rapid file on the the 10 latest quarters that came out 429 00:22:14,000 --> 00:22:16,640 aftermarket last Thursday. I'll get us kicked off. 430 00:22:16,640 --> 00:22:20,520 So min boss. 8:23 PM Sydney time. 431 00:22:20,520 --> 00:22:24,000 There are 38 mil market company advancing a phosphate fertiliser 432 00:22:24,000 --> 00:22:26,920 project in Angola finished the quarter with only 1.2 million 433 00:22:26,920 --> 00:22:30,720 cash and 80% of this quarter's spend was on staff, admin and 434 00:22:30,720 --> 00:22:33,240 corporate costs. But they are finalising a bunch 435 00:22:33,240 --> 00:22:36,520 of funding from the Angolan sovereign Wealth Fund and the 436 00:22:36,520 --> 00:22:38,920 International Development Corporation South Africa to 437 00:22:38,920 --> 00:22:42,080 advance their projects. So perhaps they're working on 438 00:22:42,080 --> 00:22:44,320 Angolan time when submitting this quarterly. 439 00:22:45,160 --> 00:22:49,120 On to the next one. Strike Resources SRK 815 PM, $10 440 00:22:49,120 --> 00:22:52,240 million market cap with an iron ore deposit in Peru also at 441 00:22:52,240 --> 00:22:55,240 27.7% shareholder in lithium energy spent out of strike back 442 00:22:55,240 --> 00:22:57,840 in 2021. But look at the cash balance was 443 00:22:57,840 --> 00:23:00,880 6.1 million, which you typically wouldn't expect for someone 444 00:23:00,880 --> 00:23:02,560 reporting at this time of the evening. 445 00:23:03,080 --> 00:23:05,200 Seems like they're trying to secure approvals to support 446 00:23:05,200 --> 00:23:09,520 upcoming expiration plans, so no excuses to not report on time 447 00:23:09,520 --> 00:23:10,240 next quarter. Strike. 448 00:23:10,240 --> 00:23:12,320 Get your shit together. Get your stuff together. 449 00:23:13,120 --> 00:23:16,720 Speaking of Lithium Energy, Lithium Energy, 804 PM. 450 00:23:16,720 --> 00:23:19,720 They were the third latest quarterly reporter. 451 00:23:20,320 --> 00:23:23,720 They're currently suspended from trade because ASX believes the 452 00:23:23,720 --> 00:23:26,920 recent sale of their Solara's lithium brine project for that 453 00:23:26,920 --> 00:23:30,440 like US $63 million, which, you know, completion is still 454 00:23:30,440 --> 00:23:32,480 pending. A few conditions constitute a 455 00:23:32,880 --> 00:23:35,360 disposal of the company's main undertaking. 456 00:23:35,360 --> 00:23:39,080 So this suspension will remain in place until ASX believes it 457 00:23:39,080 --> 00:23:42,520 has, you know, sufficient operations to justify very 458 00:23:42,520 --> 00:23:46,240 quotation or, you know, basically recomplying with the 459 00:23:46,240 --> 00:23:49,680 ASX listing rules again, which, you know, they probably have to 460 00:23:49,680 --> 00:23:52,080 buy another asset or something. They're also spinning out some 461 00:23:52,080 --> 00:23:55,200 graphite assets. And so fortunately, you know, 462 00:23:55,200 --> 00:23:58,080 they should hopefully have a bit of cash coming through, assuming 463 00:23:58,080 --> 00:24:01,640 all these deals complete, you know, fun in US and get back on 464 00:24:01,640 --> 00:24:04,200 their six boards. They finished with 2.4 million 465 00:24:04,200 --> 00:24:06,360 cash. Like being suspended, there's no 466 00:24:06,360 --> 00:24:07,640 excuse for not reporting on time. 467 00:24:07,680 --> 00:24:09,280 I know. Come on guys. 468 00:24:09,280 --> 00:24:12,880 Fuck this company. Horseshoe Metals 7:58 PM. 469 00:24:12,880 --> 00:24:16,440 I've said this company's name twice already in name and shame. 470 00:24:16,800 --> 00:24:19,520 What the actual fuck are you still doing reporting 471 00:24:19,840 --> 00:24:21,640 aftermarket? This is deplorable. 472 00:24:21,880 --> 00:24:24,360 They are a regular tiny $6 million market cap company. 473 00:24:24,560 --> 00:24:27,080 The only price sensitive announcements this year were 474 00:24:27,080 --> 00:24:30,000 their quarterly and an announcement back in April about 475 00:24:30,000 --> 00:24:32,360 evaluating a strategy to accelerate the cash flow from 476 00:24:32,360 --> 00:24:35,040 potential DSO sales of its existing copper stockpiles. 477 00:24:35,200 --> 00:24:36,760 This process still seems to be underway. 478 00:24:36,880 --> 00:24:40,200 In last week's Quarterly finished the quarter with a 479 00:24:40,200 --> 00:24:44,080 measly $1000, but it has $1 million in unused financing 480 00:24:44,080 --> 00:24:45,320 facilities that can draw on Ellie. 481 00:24:45,320 --> 00:24:49,680 I mean jeez, that $1000 cash left in the bank is body cutting 482 00:24:49,680 --> 00:24:53,240 it fine, that's for sure. But that's still enough to get a 483 00:24:53,240 --> 00:24:55,960 free insurance review from CRA. What an offer? 484 00:24:56,680 --> 00:25:00,160 What an offer. With $1000, yeah, you can hope 485 00:25:00,160 --> 00:25:01,480 the Horseshoe is up the right way. 486 00:25:01,480 --> 00:25:03,480 There's some good luck there because CRA will review your 487 00:25:03,480 --> 00:25:05,560 insurance policies for you. They might need some insurance 488 00:25:05,560 --> 00:25:08,040 policies, Ali. Yeah, So what an offer give give 489 00:25:08,040 --> 00:25:09,880 Dave Adam Atari from Sara a call. 490 00:25:09,880 --> 00:25:12,880 They'll do a free order of all your existing insurance to see 491 00:25:13,080 --> 00:25:14,800 if you have any gaps or exposures. 492 00:25:15,000 --> 00:25:17,920 They're across insurance for heaps of commodities and 493 00:25:17,920 --> 00:25:20,960 jurisdictions, from gold in West Africa to coal in Queensland. 494 00:25:21,280 --> 00:25:23,480 The insurance ace is second to none. 495 00:25:23,480 --> 00:25:26,440 Do yourself a favour, organise an insurance review with CRE 496 00:25:26,440 --> 00:25:29,480 Today phone numbers in the show notes And who knows, the dollars 497 00:25:29,480 --> 00:25:32,520 you might be able to save on insurance policies could be 498 00:25:32,520 --> 00:25:33,800 directed to dollars in the ground. 499 00:25:33,800 --> 00:25:34,640 What a win. Win it. 500 00:25:35,240 --> 00:25:37,360 Could be, yeah. I don't have many dollars though 501 00:25:37,400 --> 00:25:40,440 but. A couple extra dollars are 502 00:25:40,440 --> 00:25:42,360 better than I. Reckon I reckon CRE's advice 503 00:25:42,360 --> 00:25:45,280 might just be to stop fucking reporting late. 504 00:25:47,480 --> 00:25:50,680 Arcadia Minerals 7:57 PM. Even tiny company than 505 00:25:50,680 --> 00:25:51,800 Horseshoe. Barely $4 million. 506 00:25:51,800 --> 00:25:53,120 Market cap. Share price basically halves 507 00:25:53,120 --> 00:25:55,840 since the start of the year. They've got significant 508 00:25:55,840 --> 00:25:58,320 austerity measures and cost reductions to preserve cash 509 00:25:58,680 --> 00:26:01,240 reserves implemented. Only $55,000 cash at the end of 510 00:26:01,240 --> 00:26:05,440 the quarter. Righty Golden deep 747 another 5 511 00:26:05,440 --> 00:26:09,160 million mark Cap A6 Mino had a big share price spark in early 512 00:26:09,160 --> 00:26:12,000 September off the back of some copper and silver hits, but then 513 00:26:12,000 --> 00:26:14,040 now they're back to their usual trading range. 514 00:26:14,320 --> 00:26:16,760 Better cash balance and some of the peers we've spoken about 515 00:26:16,760 --> 00:26:20,000 today, 4.6 million, but admittedly they raised 1.8 516 00:26:20,000 --> 00:26:24,640 during the quarter and they spent only 700K on expiration. 517 00:26:24,960 --> 00:26:28,440 I think those are copper hits featured in Devils in the detail 518 00:26:28,480 --> 00:26:31,880 one one of the days too early. Yeah, the dork experts out there 519 00:26:31,880 --> 00:26:33,840 took plenty of issues with that one. 520 00:26:33,960 --> 00:26:37,200 Middle stage, right? 7:47 PM Fancy cover page for 521 00:26:37,200 --> 00:26:39,240 their quarterly report. Also secured working cap 522 00:26:39,240 --> 00:26:42,360 facility the day before the quarter released up to 523 00:26:42,400 --> 00:26:46,120 $5,000,000 to move forward a Slovakian gold project. 524 00:26:47,000 --> 00:26:49,480 Fortunately, because they only had $73,000 cash at the end of 525 00:26:49,480 --> 00:26:53,360 the quarter, I, I remember doing a deep dive on this company like 526 00:26:53,640 --> 00:26:56,960 and just bizarre series of events. 527 00:26:57,480 --> 00:26:58,840 I'm keeping my eyes on it, Ellie. 528 00:26:58,960 --> 00:27:01,600 I've got my suspicious eyebrows kind of taped upwards. 529 00:27:02,160 --> 00:27:05,880 Friday, BMG Resources 740. They're a little gold junior 530 00:27:06,120 --> 00:27:09,080 doing a strategic review on their Abercrombie gold project. 531 00:27:09,080 --> 00:27:12,640 So is it for sale? Basically, they did a scoping 532 00:27:12,640 --> 00:27:14,320 study on it as well very recently. 533 00:27:14,320 --> 00:27:17,080 They finished the quarter only with $96,000. 534 00:27:17,080 --> 00:27:19,440 Fortunately, they have commenced discussions with brokers for the 535 00:27:19,440 --> 00:27:21,840 purpose of raising capital, so see how they go there. 536 00:27:24,280 --> 00:27:26,520 I love when you see the yeah, like how you're going to get by 537 00:27:26,520 --> 00:27:28,000 the next quarter. It's like, yeah, we've we've 538 00:27:28,040 --> 00:27:29,360 kicked off. We are coming. 539 00:27:29,360 --> 00:27:30,480 We're. Chatting with the brokers. 540 00:27:33,240 --> 00:27:36,880 Redstone Resources 7:39 PM Sub $3,000,000 market cap company 541 00:27:36,880 --> 00:27:39,600 accelerating its, you know, copper expiration in the coming 542 00:27:39,600 --> 00:27:41,400 months at West Musgrave Project WA. 543 00:27:42,320 --> 00:27:44,280 Feels like, you know, the drilling has been planned for 544 00:27:44,280 --> 00:27:47,040 the last few quarters. Expiration results that we could 545 00:27:47,040 --> 00:27:50,120 find. We're almost 18 months old with 546 00:27:50,120 --> 00:27:53,480 only sort of 800,000 bucks cash in the bank, largely thanks to 547 00:27:53,480 --> 00:27:55,880 an Rd refund received in the quarter. 548 00:27:55,880 --> 00:27:58,520 Expect better reporting timing next period. 549 00:27:58,800 --> 00:28:03,280 Redstone. Diablo Resources 738 Last one 550 00:28:03,280 --> 00:28:06,200 for today though, don't worry, there's still plenty that were 551 00:28:06,360 --> 00:28:09,320 after aftermarket. This is the smallest company 552 00:28:09,320 --> 00:28:12,280 we've spoken about today. 2,000,000 market cap just show 553 00:28:12,280 --> 00:28:15,640 off 400,000 bucks of cash at the end of the quarter. 554 00:28:15,920 --> 00:28:18,120 Share prices more than half since the start of the year. 555 00:28:18,360 --> 00:28:20,640 Another one of those companies whose price sensitive 556 00:28:20,640 --> 00:28:22,760 announcements, you know whose only price sensitive 557 00:28:22,760 --> 00:28:25,600 announcements for the year were so far were the quarterly 558 00:28:25,600 --> 00:28:29,160 reports. They say the following in their 559 00:28:29,720 --> 00:28:32,520 in their quarterly, they're saying they're actively 560 00:28:32,520 --> 00:28:36,160 reviewing opportunities focusing primarily on more advanced drill 561 00:28:36,160 --> 00:28:38,760 ready projects. The company's low EV and tight 562 00:28:38,760 --> 00:28:41,080 capital structure make it exceptionally well placed for 563 00:28:41,080 --> 00:28:45,640 project acquisition. I'm not sure how 1.6 million EV 564 00:28:45,840 --> 00:28:48,560 well places you for project acquisition, but. 565 00:28:48,920 --> 00:28:50,160 To shell OK, but. What a shell. 566 00:28:50,240 --> 00:28:53,120 But what does it say about the exploration prospects that 567 00:28:53,120 --> 00:28:54,920 they've already got if they're looking outwardly? 568 00:28:54,920 --> 00:28:57,440 Oh, Jase, it's. It's an admission we are a shell 569 00:28:57,440 --> 00:28:57,960 company. Oh. 570 00:28:58,880 --> 00:29:01,720 So and, and that wraps it up. That's actually our last 571 00:29:01,960 --> 00:29:04,320 quarterly name and shame for for this the year. 572 00:29:04,320 --> 00:29:05,280 Trev, there you go. Oh. 573 00:29:05,680 --> 00:29:09,320 Jeez, get your shit together next year guys, 2025. 2025 make 574 00:29:09,320 --> 00:29:14,280 it the year of reporting before. It's OK if it's on the last day, 575 00:29:14,280 --> 00:29:17,680 but do it before you know market close. 576 00:29:17,800 --> 00:29:20,280 Alrighty, last one for the day, Trev. 577 00:29:20,440 --> 00:29:24,800 Rio Tinto in Mongolia and entree resources. 578 00:29:24,800 --> 00:29:26,640 What? What is all of this about? 579 00:29:26,920 --> 00:29:29,480 Well, I I think it's actually really interesting and 580 00:29:29,480 --> 00:29:31,920 admittedly it was it was completely off my radar. 581 00:29:32,320 --> 00:29:35,480 So Pete Kerr, he reported that Rio Tinto's chief flew to 582 00:29:35,480 --> 00:29:39,040 Mongolia on the weekend and in an attempt to strike a deal with 583 00:29:39,040 --> 00:29:42,040 this Canadian listed junior called Entree resources and the 584 00:29:42,040 --> 00:29:44,680 Mongolian government in relation to it's what you talk like 585 00:29:44,720 --> 00:29:47,520 copper project. Why is it interesting Ali? 586 00:29:47,600 --> 00:29:51,840 This is one of those awesome times in, in kind of, you know, 587 00:29:51,840 --> 00:29:55,360 corporate history where a listed junior is sort of successfully 588 00:29:55,360 --> 00:29:58,160 holding out and causing real pain in the butt for a major 589 00:29:58,160 --> 00:30:00,840 like Rio Tinto. Entree Resources, they're TSX 590 00:30:00,840 --> 00:30:04,880 listed junior with a market cap of 370 million Canadian dollars. 591 00:30:04,880 --> 00:30:07,760 And it's, it's been quite the tear over the last like five 592 00:30:07,760 --> 00:30:11,160 years. But Entree has a 20% carried 593 00:30:11,160 --> 00:30:14,880 interest in part of Oye Tolgoi with with Rio and the Mongolian 594 00:30:14,880 --> 00:30:19,560 government in JV Pete reports that Oyo Tolgoy is extracting 595 00:30:19,560 --> 00:30:22,880 rock from an underground zone called Panel Cave Zero and it's 596 00:30:22,880 --> 00:30:25,360 scheduled to start extracting from a new high grade area 597 00:30:25,360 --> 00:30:27,960 called Panel Cave One in the next couple of months. 598 00:30:28,400 --> 00:30:30,800 Now Rio's not been able to convince Entree to sell its 599 00:30:30,800 --> 00:30:34,960 rights over the tenement. Today the impasse from Entree 600 00:30:34,960 --> 00:30:37,600 threatens to disrupt Oyo Tolgoy's mine plan because 601 00:30:37,960 --> 00:30:40,720 construction of Panel Cave 1 cannot go ahead until Rio and 602 00:30:40,720 --> 00:30:44,200 Entree have done a deal if one can. 603 00:30:44,200 --> 00:30:47,040 If a deal can't be reached within the next 8 weeks, then 604 00:30:47,040 --> 00:30:50,880 Rio will be forced to take a stop gap stop measures in 2025 605 00:30:50,880 --> 00:30:53,840 such as mining in lower grade sections of the rock, which will 606 00:30:53,840 --> 00:30:55,720 lead to lower copper production volumes and revenues. 607 00:30:56,400 --> 00:30:59,280 And even says that a source close to talks confirmed the 608 00:30:59,280 --> 00:31:03,440 situation was now urgent and Rio would strongly prefer to start 609 00:31:03,440 --> 00:31:05,640 building Panel Cable One as soon as possible. 610 00:31:05,720 --> 00:31:08,280 What an amazing set of circumstances this is like a 611 00:31:08,280 --> 00:31:11,360 real life corporate, you know, David and Goliath type 612 00:31:11,520 --> 00:31:14,800 situation, isn't it? The little guy, it is David and 613 00:31:14,800 --> 00:31:17,440 Goliath, but it's one where, yeah, the little guy actually 614 00:31:17,440 --> 00:31:20,400 has all of the negotiating, like leverage. 615 00:31:20,480 --> 00:31:23,560 It's so rare, fascinating, so rare to say that the minority in 616 00:31:23,560 --> 00:31:25,880 the JV has the upper hand in the negotiations. 617 00:31:25,880 --> 00:31:29,320 But this sure seems like one of those event opportunities our 618 00:31:29,320 --> 00:31:30,960 markets dish up from time to time. 619 00:31:31,280 --> 00:31:33,080 They're really fascinating. Watch play out. 620 00:31:33,600 --> 00:31:36,160 There are also opportunities for people that are paying, you 621 00:31:36,160 --> 00:31:38,080 know, really close attention to the details. 622 00:31:38,640 --> 00:31:40,800 I'll be watching closely to see what happens here. 623 00:31:41,000 --> 00:31:43,840 Ali Entrees two big shareholders are Rio Chinto themselves, who 624 00:31:43,840 --> 00:31:46,040 own 16%. There's also Horizon Copper 625 00:31:46,040 --> 00:31:48,080 Corp, who own 24%. Who are they? 626 00:31:48,440 --> 00:31:52,520 They are a listed company. I was trying to figure out why 627 00:31:52,520 --> 00:31:55,640 it only had a media market cap itself of of 67,000,000. 628 00:31:55,640 --> 00:31:59,080 And it turns out Sandstorm, the royalty company, Sandstorm 629 00:31:59,520 --> 00:32:01,520 actually own a bunch of debentures in Horizon's cap 630 00:32:01,520 --> 00:32:04,400 structure too. So EV of Horizon is closer to 631 00:32:04,400 --> 00:32:07,560 230 million Canadian dollars. All of this is just going to 632 00:32:07,560 --> 00:32:11,280 make for popcorn viewing with respect to deal negotiations and 633 00:32:11,360 --> 00:32:13,960 yeah, pretty interesting like a thing for the shareholders of on 634 00:32:13,960 --> 00:32:15,680 trade to just watch play out I reckon. 635 00:32:16,520 --> 00:32:18,160 So we'll be keeping an eye on that one, Ellie. 636 00:32:18,320 --> 00:32:20,520 Yeah. I mean, how do you say that 637 00:32:21,520 --> 00:32:24,240 coming together, what's what the most likely outcome might be 638 00:32:24,240 --> 00:32:25,840 like? Do you think it's just a really 639 00:32:25,840 --> 00:32:30,560 aggressive takeover from Rio? I think so. 640 00:32:30,840 --> 00:32:32,440 Everything's got a price, doesn't it? 641 00:32:32,440 --> 00:32:36,000 And really, we'll be trying to play hardball, sort of trying to 642 00:32:36,000 --> 00:32:39,040 suggest that, yeah, it's got this like, other plan and it'll 643 00:32:39,040 --> 00:32:40,200 just go here and blah, blah, blah. 644 00:32:40,200 --> 00:32:42,800 And that will mean that cash flows to entree are going to be 645 00:32:42,800 --> 00:32:45,800 unpalatable and will come later. But I actually think Rio's 646 00:32:45,800 --> 00:32:48,400 already showed the end and the fact that the CEO's flown to 647 00:32:48,400 --> 00:32:52,920 Mongolia, like, yeah, that that they can't, they can't negotiate 648 00:32:52,920 --> 00:32:55,480 from a place of this doesn't matter to us because they've 649 00:32:55,480 --> 00:32:59,160 already shown why they've shown that they need to do this. 650 00:32:59,160 --> 00:33:01,680 So it's just going to be like price dependent here. 651 00:33:01,760 --> 00:33:05,760 I think everything's a price. You know what else matters a 652 00:33:05,760 --> 00:33:06,280 lot? Trev? 653 00:33:06,440 --> 00:33:08,360 Tell me. Ellie is our amazing partners. 654 00:33:08,360 --> 00:33:10,520 Who are they? Mineral mining services. 655 00:33:10,560 --> 00:33:13,880 We've got Grounded, we've got Cross Boundary Energy, Sam 656 00:33:13,880 --> 00:33:15,920 Victoria ground support at the top of the show. 657 00:33:15,920 --> 00:33:20,080 Also CRE Insurance at the top of the show, Cagel and a new 658 00:33:20,080 --> 00:33:22,320 sponsor which you'll hear about later in the week. 659 00:33:22,680 --> 00:33:25,240 They SAT Oodaroo. Money miners Oodaroo. 660 00:33:26,360 --> 00:33:28,920 Information contained in this episode of Money of Mine is of 661 00:33:28,920 --> 00:33:31,000 general nature only and does not take into account the 662 00:33:31,000 --> 00:33:34,600 objectives, financial situation or needs of any particular 663 00:33:34,600 --> 00:33:36,640 person. Before making any investment 664 00:33:36,640 --> 00:33:39,680 decision, you should consult with your financial advisor and 665 00:33:39,680 --> 00:33:42,840 consider how appropriate the advice is to your objectives, 666 00:33:43,040 --> 00:33:45,040 financial situation and needs.