Righto muddy bonus big news for today is Ally GC is back.
That is, don't worry about Greatland, don't worry about
gold. Ally GC is in the house well
back for. 2025's good to be back in the hot seat, Maddy.
Very good, right? What do we got?
We've got the Greatland month update.
We do. We got GCU.
We've got a bit of Regis and just sort of general Goldie
producer machinations as. Well, yeah, a bit of Westguild,
Westguild snake and the quarterly call in at 115
specifically, they must have knew we had a meeting on because
it's midnight in Canada. It doesn't make sense.
I'm going. To talk about a bit of uranium
for you too, Maddie, are. You Lotus.
Oh yeah, beauty. And then we're and we're
chatting uranium after this with.
The we are, we've got a, we've got a big one.
Yeah, we do. So let's RIP in great land.
Right, right. This I did go greatly go Stewie
Heinz. Go Stewie, Heinz, search Stewie,
search Stewie. Yeah, mate, I think you've got
to start like thinking of Greatland Gold as a, as a
producer now, which is, yeah, bit of a mental shift we've got
to make because we've always just thought of as a developer.
But they've of course, they've picked up the the great deal of
Newmont with Telfer and the rest of of Havron late last year.
That actually completed as of the 4th of December, which which
meant that they had 27 days of the quarter which in which they
were, you know, the the the rightful owner of the assets
producing gold. And you know, so we can actually
take a look at what what's been happening at 27 days.
They've reported production numbers of on the likes the
market, importantly, really like what they saw.
Stock went up 21% on the on the AIM where it's where it's listed
overnight and and you know basically just they're just
pretty stoked about those the 27 days performance.
But in those 27 days they produce an encouraging 29.9000
ounces of gold and 1.2000 tons of copper.
You do the math on just like the revenue there at spot prices,
that's like, you know, Aussie dollars about 150 million bucks
of of value kind of coming out of the out of the plant, which
is not bad for for 29 days of of operation.
What drove that that performance from day one of ownership?
They, you know, they turned on processing from the second train
that that resumed pretty quickly.
But and if you take the small bit of data that that that
they've provided us here, they're producing 33% more than
the right in their initial 15 month mine plan.
Maybe they acquired it. They had its initial telephone
15 month mine plan, but you know, they're kind of quick to
cool the punters heads that the mill grade from this in a brief
little period was higher than the the mine plan average that I
get too carried away just yet. They might have just had, you
know, slightly higher grade. This resulted in the the the
outsized performance in in this month.
Just people will be excited about all those sort of
stockpiles that were already there as well, Trev, cause and
they've sort of picked up a fair bit more from there or.
Actually got 20 percent, 20% more on the stockpiles than they
expected to. There is a bit of an adjustment
payment they're going to make to Newmont.
It's about 24,000,000 bucks, but like you picked up a lot more of
the stock, got prices going up. Like that's a handy kick.
Those stockpiles are enormous. And you can kind of see the, the
grade reconciliation between what they they mined in the
month there was .77 and their stockpiles are are predominantly
lower grade, but they've got there's like 10 or nearly
11,000,000 tons of of, of higher grade stockpiles there at .71g
per ton gold, which is yeah, like super healthy, super handy
thing to have when you think there's like 20 million tons per
annum processing price. That's like six months of of
feed on the ROM that's high grade, which is, yeah, a huge,
huge win. They mined, they what they put
through was .77. What they mined.
If you did a weighted average pin open pit and underground is
about point 72.71. Yeah, yeah.
Like a number. The stockpiles are the theme at
the moment. These guys got what, 35,000,000
tonne of them, you know, right? We'll talk about Regis later.
They got bloody. Everyone's making money out of
low grade stockpiles at the moment.
Yes, we can talk about .71 as high grade stockpile, but that's
scale for 1.33. Yeah, you.
Make money out of that these days so they.
Haven't they haven't actually reported costs yet.
There's a bit of water under the bridge there, but the balance
sheet's healthy 145 million in Aussie dollars cash at 31
December. No get drawn.
They've got some facilities they can they can utilize if they if
they want to or need to. And you might be, you might be
wondering where great Linda are going to get their my life
extensions from post their initial 15 month mine plan.
Maddie, you've worked at Telford.
Do you, do you remember W Dome open pit?
Well, they're talking about stage seven and stage 8 cutbacks
there. They're they're the that's the
that's what they're prioritizing for FID this financial year.
Of course, they've got no further cut back down at main
Dome that they are looking at as an extension.
And then you've got the, the, the two sort of underground
areas that they're, they're also pretty excited about.
Yeah, I think the because you got main Dome W Dome and I'm
pretty sure you you drive We used to drive through the Oh,
shouldn't they still do? You drive through the middle of
them to get to the underground. You go in the pit and God, there
was talks that they could just RIP the whole thing out and join
it all up one day. So because there's fricking gold
everywhere in a joint that's being mined in gold for bloody
ages. So yeah, I'm sure there's plenty
of fricking options so. Yeah, bit of bit of capital over
time, but you expect that and but yeah, the positive thing is
a healthy gold endowment. I just want to play this
question which Ben Lyons from Jardin asked in relation to to
have run on the call. I'm moving on to this
feasibility study then I guess it's a a related question.
You know, obviously you're dealing with a massive 130
million tonne ore body here that previously we've only been
talking about a mining imagery of about 50 million tons.
You know, coming up the single 3.8 million tonne decline.
There's only a very brief comment about the feasibility
study in your release overnight, but I think it's an important
one about that you've concerned the scope and the inputs.
So can you elaborate on that please?
You know, are we expecting a couple of different potential
outcomes in the feasibility study, one being the 2.8 and
another one maybe being a larger scale conceptual operation?
Thanks. Yeah, Yeah, Ben, look that's
perceptive of you. You know we, we are going to
look at different scenarios there with the, you know new
Crest had settled on the 2.8 million ton or I think they
actually had a three million ton to good order up a single
decline. We were more comfortable with
2.8 million tons up a single decline.
But having said that, we're also going to kind of contemplate
second day clients and what else can be done because this is a
big ore body. As you said, it's already 130
million tons, big mining Stokes average Stoke size 100 to
125,000 tons. Yeah, potentially this wants to
be mined quicker than that. And can you solve that with your
haulage system? So we'll be looking at all, all
elements through there and we like to think particularly given
the back end infrastructure is in place, there's some good
opportunity. That is interesting.
It is right? Especially considering what
they, I think it's the bloody most expensive decline in
history, the one they've got there at the moment, what they
had to do to get through the the cover and then and then the
aquifer, the multi levels of it. But it would make a lot of
bloody sense. Get a second one in and put a
conveyor system to the surface. Yeah.
That'd be like, yeah, I think if you're going to put a second
decline in and yeah, you could do it with trucks like like long
term theory. Or if they're going to do it,
fucking Chuck a bloody because it's a big long straight,
because combines have to be straight.
Then you just wedge them and step them down.
But yeah, that would make sense chucking something like that in.
I snipped it out. Yeah, I snipped it out.
But there was, I think there was a comment about the whole system
being able to, you know, yeah, to work with it with an upgraded
thing too. So yeah, whether that's a
conveyor or or or haulage TVA, but.
And a huge game changer up there to take like, you know,
3,000,000 tonne out of declines is that's a lot of trucks and a
lot of heat and you're in the fucking hottest lights in
Australia. Trust me, one of the hottest
minds you'd work at just because of the pure, the ambient surface
temperature. So if you can remove diesel,
that much diesel from it and there'll be some happy miners on
there. Totally.
I could imagine yeah and just the fact that I've got like that
20 million tons processing capacity if you get an extra
like 2.8 out of Havron, assume it's the same or might be not
sure, but like that just that's a it's a meaningful difference
the ability to keep 2 trains running for for the base case at
tougher on. But it's, I don't think they're
going to get like, like everyone's be like, you know, 3
million, like mate, would they get 5 or 6?
Yeah, they're not going to get 10 or 12 out of no, like it's
still not, it's not going to be, there's still going to be a big
void of what they're going to fill the mill with.
Like if they're going to run both trains.
Yeah. So yeah, it's when, when I'm
talking conveyor that might lift them to 5 million tonne or 4
million tonne. Maybe it's not, it's not going
to be 10 because it's just an underground.
So unless it's AI, will wait and see.
Might have egg on me face as per usual.
Yeah. Yeah, so I think like it'll be
the unreal if they and we'll talk about it with Regis as
well. To get to get big tons, you need
big pits. Like not like unless you're
going to build a big fucking block cave or something.
So, and considering cage rules crept up into the Murchison for
West gold, why not just keep going up to bubble bar and start
start punching RC and diamonds holes in upper Telfa?
It'd be look and Stewie. I think Stewie Hines is the man
to make it happen. Well, he's he's the advocate for
Telfa. He'd probably just put in a good
word for the casual boy Stewie to get up to up to the great
land. Mate this is yeah province prime
fair fair expiration. You need to put holes in to find
stuff and you've got a new a new steward of this asset who's
who's setting the expiration. Mines.
Yeah, you want to maximize, maximize the potential, yeah,
mining scenario by finding shit there.
Yeah, well, it look and we we hang shit on Marble Bar a bit,
but it is some great land up there.
Jesus go. OK, drill go to great land.
Send Ryan back to the Pilbara. Oh.
He'd love it. He love it.
He's he's ready for it. Oh, he'd be just eaten the
bloody marble bar, right? I love.
It. Let's talk a bit about the the
valuation. Just just quickly, a lot of
people sort of pointed out on Great Land that it's pretty
enticing because it's on the the LSE of All Beloved Exchange.
That's the aim. The aim, yeah, so.
Yeah, it's, it's TV and Aussie dollars is is 1.7 billion, which
like honestly screens pretty undemanding versus ASX peers.
We'll talk about where where their values are.
I'll be able to migrate up to the LSE.
Yeah. I mean, look, let's just let's
see what happens when they get some price discovery on the ASX
which that. Would be very interesting to
watch. Yeah, yeah.
Which is flag for mid Yale. Yes.
So a quick one. They sort of put a bit of an
update on the whole ASX listings component in this quarterly they
put out the other day. So I mean they largely flagged
that sort of back end of last year looking to do an ASICS
listing sort of mid mid year this year along with keeping
their you know existing AIM listing.
But the new news, which to me at least anyway, was that they were
also looking to undertake a corporate reorganization which
basically would see the existing Great Link Group sit under a
newly minted Australian incorporated parent company.
And that basically gets affected by auk scheme of arrangements
subject to approval from the UK courts and Greatland
shareholders. And so I can imagine probably
some of the not so corporately inclined people are wondering
why do we care? What's the point of doing this
and what is it actually like practically achieve So Greatland
sort of site some sort of pretty logical reasons in in the relays
as far as just, you know, all their assets and paper here.
It makes sense to have an Aussie domicile, you know, Headco, you
know, reduced costs and complexity blah, blah, blah, all
that sort of stuff. But probably the more
interesting points is the last two bullet points there, which
will pressure the screen grab from the quarterly greater
flexibility to pursue new investment and acquisition
opportunities in the resource sector and the potential for
increased institutional ownership of Griteland.
Now I imagine you know what, what could those new investment
and acquisition opportunities be?
I'm sure all the NTP shareholders getting very
excited about that. But I imagine being Aussie dumb
assault, you know, going forward while also, you know being, you
know, having the ASICS listings would, I imagine would make that
whole M and a process like legally processed tax wise just
so much more simpler and streamlined.
And then, you know, obviously having ASICS group to offer in
a, in a potential M&A scenario would be a lot more attractive
as well. And also if you are like your
head codes ASICS domicile, I believe you don't need fib
approval if you're doing OK any future deals which which would
make sense. And I'm not sure if by becoming
Aussie domicile that they're the A6 becomes their primary listing
and the AIM becomes secondary. I'm not quite sure they have to
make that distinction. They have to.
Yeah, yeah, CDI. I'm interested to sort of learn
more how those mechanics works because that can, you know, sort
of have some implications for how they sort of operate
themselves and corporately and deals and things like that.
But I'm sure all the legal eagles are all over it.
But I'm. Taking better tax implications,
less conditionality with deals and maybe can deal done faster.
Seems like it, which is pretty logical thing to do, but yeah,
no. Be good to see another Aussie
gold producer on the ASICS boards later this year.
But is it, is it different? Not in a conventional means.
The way you've worded it, sign the it'll sit under an Aussie
parent company. It's not like they're creating a
like a dual listing or they're actually going to have a
company. Is it a funky way of doing it?
Or not honour and the dual listing is the dual listing.
It's just more so how I think the corporate, the corporate
structure is instead of it's like a a UK from what I
understand it's like a UK domicile company at the minute.
Yeah, that's, you know, proposing to be dual listed on,
you know, these two exchanges. It's would now they're they're
wanting to make it an Aussie domicile one.
OK. So I don't think it fixed the
listing too much. Which by the way, isn't a deal
breaker. You can have like a Cayman
domicile, like a Cayman Incorporated company listed on
the ASX, for example. OK, you're allowed as a primary
listing like stuff like that's allowed to happen.
Yeah. But but the yeah, fab is the
the. Interesting ones.
So yes, and then now we've got the the Regis quarterly, the
actual full report come out today.
Maddie, take us, we sort of touched on it earlier in the
week, but take us through the OPS side of things.
How are they going there? Yeah.
Well like the thing that just sticks out like dogs balls on
the announcement is that pretty much they've made $150 million
cash after having dashed that on side all year last year doing
the gravity work it it it is just obvious as anything.
So 2 nearly 2,000,000 bucks a day, which is heaps cheaper than
you know that that easily pays for Dashsat to be on site every
day. So yeah, pretty much you could
bloody build it an entire camp for Dashsat with 2,000,000 bucks
a day. So my cheapest way to get the
fundamental data set required for exploration and make your
drilling more efficient. So congratulations Regis.
Thanks Dashsat. And if you get Dashsat, you'll
pretty much be paying for new nappies and formula for Nathan
Daesh now as well. New day as a new day.
Bloody legend. So yeah, it's just killing two
birds with one stone there. So all right, Regis all ticking
along bloody nicely. Looks like a bit of a a honey
period for the next couple of years.
So all right, shows how bloody big Tropicana is. 43,000 oz for
their 30% share. So she's a big humdinger, that
joint. So I'm sure they wouldn't mind
getting 100% of that one day, but who knows.
But the next couple of years for duked and they look pretty and
This is why they're, you know, making a lot of cash When I
mentioned stockpiles is bloody because they look pretty heavily
dependent on those low grade stockpiles because they only
mined 860,000 tons for the quarter, but processed a bit
over 2 million ton. So hey, because you can see how
the head grade is 1g and which is significantly lower than all
the mined open put an underground because that's so
they've chucked through 1.2 million ton of low grade
stockpiles at .6 to fill the mill.
So it's seven and a half million ton per annum mill.
They're running a bit over 8 at the moment and they've got 10
million tons of stockpiles for Duke and South of .6g.
So that that's pretty much gives them at that mining right with
what they've got at the moment, they've got, you know two years
of until they sort of deplete those stockpiles.
So but. That's why that cash build is is
so awesome, Yeah, because you're all in sustaining cost will will
recognize the mining cost from when they went on the stockpiles
Yeah, and that won't look as good, but that actual cash.
Is a fuck who gives a fuck as long as you're getting the cash
exactly. It's just a bit of a bit of
funkiness, but yeah, so but so God, they could have, you know,
well over a freaking billion dollars by the end of that
period in in the war chest. So but obviously beyond that two
year point, there will need to be, you know, either like some
new pits happening at that Merlin Kintyre or Gloucester,
because you're they're talking about having 4 undergrounds, but
you won't fill A7 and a half million ton per annum mill with
four undergrounds you need they'll need some sort of pits
to, you know, lift the tons up. So but when you make nearly
2,000,000 bucks a day, plenty of options for the future.
So because, and they're also talking about campaign milling
the Duke to North stockpiles and they've got 2 million ton there
and turning that Duke to N mill back on because that's another
two and a half million ton plant that they've got on care and
maintenance. So yeah, they're going to be
yeah, they could pretty much build Mcfillamys out of cash if
in future if they wanted like. And so they're going to they're
pretty, they talked a bit about Mcfillamys on the call and just
signed. Look, if the if it was operating
today, it's like would be making a lot of money like at these
gold prices. So if was all going to plan so
it doesn't look like it's scrapped forever because they
are that's. An election catalyst for them,
right? Well.
And that's, that's what they got on the first page as well, like
the court proceedings against the Honourable Tanya Plibersek.
So they're it's not being scratched not.
Dead yet? No, no, so and printing that
much cash is it's just unbelievable how quick the since
what last year when we're thinking fuck the head talk
about the hedge book, the hedge book, the hedge book and the
bullet payment. And then just that's gone debts
gone printing cash potentially going to have a billion dollars
in cash in a couple of years if they don't use it for something
else at this run rate in this gold price.
Yeah, so good on you, guy. Rageous.
Yeah, yeah. It's been well documented that
their costs are climbing up and obviously they've got these low
grade undergrounds are bringing on which you know they're going
to be high cost. But man, the gold price is like
running faster than the unit costs are kind of climbing,
which is just, yeah, really, really great for the cash
generation so far. That was worth 50 mil of CapEx
too for the quarter. So yeah, good on them.
Bloody after you go, you go through that friggin.
They friggin deserve it after the old Mcfillimy's thing last
year because it's fucking good on you.
Ellie, you did a bit of a comp Northern Star evolution on the
the cash field over the. Border, which you sort of come
to no, it's just interesting to take a look at this.
I mean, as, as Maddie said, you know, the built, you know, 149
million cash and bullying in in 1/4.
So yeah, even if you look at what Northern Star and Evo's
generated, you know, cash and bullying for the quarter, you
know, 14 and sort of 36 million respectively.
And they've produced four and, and, and two times what Regis
are. And yes, I totally get the, you
know, different operations and you know, mine lives and CapEx
spends and and things like that. But then you compare like the
market capsule Northern Stars about 20 billion, evos is about
11 billion versus you know rages is very modest, you know low
twos billions today and what H are generating cash flow wise.
It's just it's quite fascinating.
And then you look at the this share price chart the last six
months for rages as well, it's up almost 70%.
And even I just had a look at what other sort of Aussie
goldies have been doing across that period, which most are up,
but it's only just behind, you know, catalysts and, and our
bandits. It's #3.
Two exceptional quarters in a row and before that they were
mad under performers year to date in 2024.
They were, I think before they released that quarterly in
October, they were kind of down year to day with, you know, some
all that, all the, all the, all the trop stuff in there.
Yeah, there was the, there's the royalty overhang.
There's like all. That paying off the hedge book
as well has really helped, you know, change the perception now
that they can say they're earning over 4000 bucks an hour
a. Stellar.
Yeah, like you said, 4, four months of share price just
soaring. Really makes me think of that
expression. Share prices follow earnings.
You just sort of see you put two good ones back-to-back and the
things even since the year started, it's gone from 2 bucks
50 ish to 320 or whatever that's.
Amazing. Yeah.
And then we were taking a look at the the pay NAV sort of
comparisons with the sort of few other Aussie Goldies trap.
What was your sort of your take away from that?
Yeah, Yeah. We charted up like basically
since start of 2023 like yeah, what what multiples on price to
NAV basis, what we've got like 55 goldies on this chart.
A couple of like observations is just look at the this like, you
know, a lot of them clustered together pretty close, like one
times NAV around around like, you know, 12 months ago.
Since then, Evo's has come massively back in favor and it's
like it's, you know, I think on SNP's kind of, you know,
consensus estimates like 1.3 times NAV now.
I think in the last 24 hours, three different investment banks
have have downgraded them from a buy to A to a neutral.
Nothing, you know, related to, to anything other than just
valuation. It's like, you know the, the,
you know, great, good delivery, good performance, good cash flow
like when Gary came online nine months ahead of schedule like
and and under budget like kind of great delivery on that front
operations. Some of them lift the target
price, yeah, but change the recommendation just because it's
run so well. It's run so well like share
price is like it's in the it's like 5 bucks like 80 again or
something like that. I could be wrong, which is kind
of crazy because at one point it was like, yeah, really, really
in the, in the, in the doldrums, just.
Low threes After the North Parks acquisition, there was a bit of,
you know, about the capital raise and everything that
weren't the most loved for a brief moment in time.
Totally. Then on the other side of things
like what has really kind of rolled off on a on a pay NAV
basis, TT Vault has come out of favour just on a on a price NAV
basis pretty substantially. And Regis is kind of, you know,
come come back after a period of underperformance.
As you can see there. I think there's a bit of a a
possibility or a perception that maybe, yeah, maybe some of the
yeah, some of the gold, the gold like the large cap gold stocks
are, are sort of fully valued in some respect.
And there could be this presumption to buy gold miners
or these like, you know, macro decisions around allocating to
the the Vanek funds of the world.
And what do they do? They incrementally they buy more
stock of what is already large cap.
And maybe that can see the, the very large cap stuff get, get
more elevated prices and and higher premiums than they than
they did before. It's just the phenomenon that
happens in index funds generally as a result of, of that, yeah,
the the gold miners might have higher, higher value script than
than what their own internal views of the value of their
assets are. And in that environment, they
might be more inclined to use their script to do deals.
We saw we saw a northern star obviously, obviously do that,
you know, and but even like Capricorn, like a like a like a
$3 billion company now $7.50 share price.
They bought something for for 3,000,000 bucks a day to some
neighboring 10 year round Carla window and they use this script
like they've got the cash you know, but they've.
Used this script paper so. I just think that's like a
great, I mean, those guys have their fingers on the pulse of
what they think their papers worth and it's a pretty clear,
you know, signal that I think their papers probably worth
worth, worth more than what their view of their assets are
if they're using this script. That's great.
Bring back the days of 2X NAV or 3X NAV early 2000s.
Maybe Trump will do it for us. Yeah, the one you haven't got on
this Gold Rd. Can you imagine if the whole
Regis Gold Rd. thing come together, how much cash they
would have? Because Gold Rd.
Are going to have a billion to themselves, yeah.
Oh no, that was just being mad and actually on that.
So there was an interesting quote from from Jim Byer in the
in the quarterly where he said it is worthy to note that for
the first time since Regis commenced production nearly 15
years ago, we are now debt free and unhedged.
And you know, we've certainly saying this, this theme pop up,
you know, around the grounds, all the sort of Aussie goldies
around balance sheets, sort of hedging clean up and you know,
building the war chest, You know, you know, vault sort of
cleared off the old red five, cleared up their the rest of the
project finance sort of facility from the old red five days, you
know, got over, you know, half a billion dollars in cash now, but
they still do have about 200,000 ounces of hedging in place.
Catalyst. They cleared the decks on their
on their debt last quarter. They over 80 million cash
bullion, as you said, Maddie, you know, Gold Rd. they'll pick
up a huge chunk of you know, Northern Star shares, you know,
later this year as part of the degrade takeover and they're
holding in that. But there's also been a few
which this is the probably the more interesting one I've found
people who have paid off their their debt and cleared the decks
or just generally making good cash, but putting in place these
new debt facilities for extra flexibility in, you know,
inverted quotation marks. So that's a Regis is 1.
I think they said they're working on that in the quarterly
Genesis got announced in the quarley and and West Gold more
last year they announced that and you know, we're still yet to
see a few of the other Aussie goldies, you know come out with
their December quarterlies as well.
So there might be more to come, but I think the other
interesting thing obviously, which we'll be looking forward
to is is you know, what these companies do with all these
cash, particularly as you say Tref like they continue to stay
sustain, you know, gold prices above 4000 Aussie an ounce and
you've got, you know, you're all in sustaining at high ones, all
those twos. I mean, that's just amazing.
But you know, it's whether these companies actually going to
allocate this sensibly as well. You think of Regis as cash like
they don't call him Jim Buyer for nothing.
You and the dead jokes today, you're all over.
That's a short. Oh, Gee, I love that.
But I mean, you know, like there's a few of them obviously
got big CapEx, you know, programs already planned, you
know, you're perhaps doing more organic growth, you know,
drilling and expanding plant sizes, DVS, buybacks, M&A.
But I think we'll have to save this Goldie cash flash
speculation for a Maddie Alley GC special ones when you guys
are over in Africa. So I think that will give a good
one. Get shit faced and just let it
RIP. Can I, can I throw out one crazy
deal for Regis roster? I'm going to start, Yeah.
Anyway, we'll talk about that one later, yeah.
Leave the audience. Hanging.
See where you're going with that.
Yeah, yeah, yeah. Right near Trop.
Interesting. But yeah, even like, yeah.
How would Revere cope with someone like using their script
against him? Like he's like this is, oh,
that's what that feels like, yeah.
Who does maybe good? We'll figure it out.
That'll be good. Fun.
That's going to be a Ripper, right.
Quick one, we'll just go through Westgale briefly, who as we said
quarterly call at 1:15 Perth time today, which I found is
like I think it's midnight over in parts of Canada, I don't
know, must be a really. Strange one, yeah.
Wayne might be having to surf because I've seen a video of him
surf and maybe he's I. Saw that on LinkedIn.
Yeah, I did, yeah. So just to simplify the
waterfall chart for everyone pretty much they drew 50 mil of
debt and the cash bullion investments went up 50 mil.
I think that's. That's a very concise summary.
That's about it. So I think as I said previously,
I'd be interested to see the half year accounts when they
come out, see what that sort of payables number is.
They did talk about the Drew, Drew the debt for, you know,
bigger business and working capital movements.
So yeah, they haven't, they've left their guidance unchanged.
So it's like it was the first full quarter in the combined
entity with the beta hunt and operations in it.
So look, is it the bit of a reset quarter?
Are they just getting everything sort of West Golded for the
combined entity? But yeah, as I said, left their
guidance unchanged for 400 to 420,000 oz.
So they got 81,000 oz this quarter.
They got 77,000 the previous quarter.
So unless we get a guidance surprise, they're going 421,000
oz each quarter remaining to hit the bottom end of their
guidance. So yeah, they said they are
grabbing some early ore from the Great Fingal flats, like Q3,
that high bit they were talking about looks to be only about
5000 oz, but so not shit loads. And they mightn't get all that
out by the end of the quarter, but the good stuff starts in Q4
for Great Fingal, they said. So yeah.
So, so if there's they're going to stick to that guard and slot,
fucking hell, Regis, they printed 150 mil for 100,000 oz
after spending 50 mil on CapEx for 1/4.
So if Westco can pull that together for the second-half,
interesting to see what they come out with.
But yeah, and as I, as I said, like you look at you look at the
run that like W Guards probably hasn't been underperformer in
the last month or so compared to the other goldies.
But you look at you look at the run Regis Assad, you look at the
gold right here. This January's just going on a
Rippon month and that's after the whole northern starter Gray
announcement, which was started December.
You can see the lift. So yeah, be interested in
interesting if there's some flower funds, JC back in the
West Gulf, who knows, but you never know.
We're saying what was it? Was it that was Paladin?
Did Bellevue do it? No, Bellevue did the pre
quarterly gardens downgrade? Yeah.
Interesting to see if there's any garden surprises or the guy
on Hammer and Tom. We will wait see.
We will. Second-half waited.
Seems to be the theme, doesn't it?
Should we talk about a bit of uranium?
If anyone can let us know there was a first half weighted
guidance in history, I would love to know.
Yes, right, Uranium. Here we go.
So just for you, Maddie, I thought I'd dive into this one.
Thank you. Join us.
We are going to Africa as well, so Lotus Resources, but we're
going to focus on one of the assets, the more imminent asset
being Kayla Cara, which is in Malawi.
So they've set the timeline of producing by Q3 of this calendar
year, which is just half a year away.
On the the share price front, it's been a pretty good start to
the year. They're trading around $0.25,
which leaves them with an EV of around 430 million.
If you take the cash following the the raise, which was all
sort of wrapped up in November, 155,000,000 bucks with the the
little bit of cash that they had already.
What's you are looking at me because you want me to read out?
What's Kail Care all about? Thank you for reading that out,
mate. So it is a, it's a race that
project to, to start with. As you know, Maddie, we've
spoken about this just earlier today, but there's a bit of
history that comes with it operated between 2009 and 2014,
about £2,000,000 per annum that averaged over that period by the
mighty Paladin. This is back when they owned
this one and Langa Heinrich back in the day.
So it suffered from a heap of different challenges over that
period. There was a bunch of strikes,
protests, some very interesting claims of injuries at the the
mine site as well as some unfortunate fatalities that
occurred over that period, political upheaval in the
country too, and problems with the infrastructure, as well as
technically getting the recoveries up to what they
expected. That took a long while to get to
a sort of acceptable level. So they've got their work cut
out for them. And obviously there's been years
where restart studies DFS came out in 2022 and they've been
looking at various different ways of tackling this one.
But yeah, there's a lot of those sorts of issues which, you know,
don't disappear even in that interim period they'll have to
tackle when they get there later this year.
What's so they They've got 85%. Who's got the other 15?
Be the government there, yeah. So 10 year mine life, 2.4
million tons, £2.4 million per annum is what they're targeting
at an all in sustaining cost of about US 45.
But take that with a pinch of salt.
They said it doesn't include the ramp up or the back end
stockpile. So it's steady state for that
sort of years one or sort of years two to seven period.
Getting into the resource is kind of interesting.
They talk about reserves of 16,000,000 tons at 660 parts per
million U3O8, while the resources reflect a bit of a
lower grade 500 PPM. But I went back and looked at
some of the quarterlies and some of the reporting from about a
decade ago when Paladin operated it.
And there's, there's a bit of a contrast.
You can see in this screen grab from one of the quarterlies that
the the numbers that we're mining, we're talking about 1065
PPM in one quarter, 1800 PPM in the December quarter going
through the the plant we're talking about on average 1100
PPM. So that's almost double of what
they're talking about here. And we know that sort of
relationship between grade you put through and recovery is a
very important one, especially for an operation that had these
challenges with the with the plant.
So it's kind of interesting to to contrast those two numbers
and that you know, reflecting in the the operating costs at the
time is pretty interesting as well.
Take the FY12 number which isn't a ramp up number.
So 2009 is when this started. So this is more than two years
into running the thing and C1 costs were US 54.
They didn't report an all in sustaining cost, but I think
it's fair to say at least 20%, maybe 30% higher more than 30%
is the ratio right now between C1 and all in sustaining costs.
So hard to sort of can make money depending on which sort of
point in time and what the price is.
But that is a pretty high quartile operation for those
periods. Albeit there were disruptions in
that year, but it wasn't really till the last year before care
and maintenance where they got the thing close to what you'd
call kind of humming pulled the all in sustaining cost right
down. It was challenging for a number
of years there. I'd love to say yeah, the
uranium cost curve, it seems like everything's like this.
Like besides, there's that problem.
It's a guy like MacArthur River. Yeah, like everything,
everything is like at these prices are like bit touching
guys. It's.
So volatile as well, right, Because as the price changes,
things come online over time, things drop offline and then it
shifts and it's, you know, uranium is a bit of a quirky
market where you're not just buying on spot immediately.
It's kind of interesting to look at the money you're actually
getting isn't the spot price. It could be different, which
means you can be online longer, shorter, yeah, all these sorts
of things. But to pull it back to the here
and now to see where the company is right now, they raised
130,000,000 bucks in October for the restart.
They spoke about this accelerated production plan that
nearly halved the restart capital they needed to US 50
million. Obviously plant and all that
sort of stuff is still there and they can utilize a lot of that.
They also nearly halved the time to get rest, get restarted.
So from 15 months down to what they say is 8 to 10 months
versus the 2022 DFS. Now those costs don't just
disappear. They've moved them out of
restart capital into sustaining capital.
So what they said is they're not relying on these longer lead
time items that aren't critical for first production.
But in reality, that just means you can have higher operating
costs in the near term because there's things like grid power
connection, you're not paying the money to hook up to the grid
power right now. So you're going to rely on the
diesel generator. You're going to have higher
costs if they've said that a good few months ago in the in
the restart plan. The same can be said for
refurbishment of the sulfuric acid plant.
They're going to be trucking it, you know, logistics, all these
sorts of costs are going to be involved.
You're going to be buying it on the market and importing it
rather than refurbing the plant and doing it on site.
Again, high costs. So those all in sustaining costs
are going to be north of $65 for the first year or so while they
while they don't have these things online.
And then in the interim, over that sort of 2627 period,
they're going to have to spend the money.
To get it done so you can give them the benefit of the doubt.
You could look at it positively and say maybe it does look the
maybe it does make the project economics a bit better.
You're bringing in cash flow somewhat sooner, hopefully in
the door from sales. It's a bit of a balancing act.
I haven't looked month by month. I don't know exactly what it
looks like. But yeah, there could be various
reasons why they've gone about it this way.
And they do point to having $79 million in excess liquidity
after the upfront costs and after the other bits of CapEx
have been spent. So they're pointing to a big
buffer. But then there's more fine print
you've kind of got to read with other pre production costs not
even included in that CapEx. So yeah, you'd want to look very
closely especially with those, those quarters, what's going in
and out, what they're sort of making because I don't
anticipate they'll be making a heap of money while they're fine
tuning the plant, while the costs are so high and CapEx is
going to have to be spent after that restart CapEx.
So it'll be, it'll be an interesting few quarters and a
couple years really. And I think that's part of the
reason they they upsized that, that capital raise they did
while there was interest, they took the money on board.
They're debt free. They've got a bit of a facility.
They haven't drawn upon it yet. But if you know on that front,
they've done some good sort of measures to put them in good
stead, I reckon. Yes, that was, that was freaking
detailed JD. Thank you mate.
That was high level shit. I just chugged the coffee and
just got into it, punching it out.
Oh. God, you're opposite of me
today. How do you?
Think how do you think that that Lecarne fits into like their
plans? So that I mean scoping study in
in the works right now just I think it's yeah, back burner.
Yeah. I think like you got a
relatively small team there working on things.
I don't think you're going to be spending an awful lot of time on
the thing that's at Skyping phase right now when you need to
get this online and the market is going to be looking quarter
by quarter how it's sort of performing.
That's kind of what I'd imagine that.
That said, we've obviously spoken about a bunch of other
operations, uranium operations being restarted and coming
online that sort of coincided with a lot of them peeling off
share price wise as I think the market kind of stepped down
there. Expectations of what ramp up
could be. I think there was a few
disappointments out there and people realize, hey, this is
actually pretty hard. The share price of Lotus nearly
halved. It went from close to $0.50 to
more than halved at some points. Now it's sitting about half the
highest of just six or seven months ago.
So I think the market did sort of take into account there was
that initial excitement in October where these guys pulled
forward production. It was meant to take 15 months
and be a bit delayed. So they pulled production to Q3
of this year. Share price ticks up, but then
people realize this is going to be pretty hard.
It's not a sure thing that we're going to get there smoothly and
it's going to cost a fair bit of money.
So I think the, you know, the excitement was taken out the
stock as well. They did that capital raising
when the share price was beaten up.
So they ended up doing that around that sort of $0.25 mark
as opposed to where they were in the in the 40s close to 50
before, which sets the whole bar lower because you bring on all
this capital, 130 million for a roughly half a billion dollar
company. Because do they have any debt?
No. So they got a 15,000,000 U.S.
dollar facility with one of their off takers, but they
haven't drawn upon that as of yet.
They haven't, you know, notified the market maybe we see in the
quarterly that they drew upon a little bit, but that that's a
strong positive that, you know, they're not going to be running
the, the risks of single asset coming online with a bunch of
debt as well. They don't have those sorts of
challenges. But yeah, lots to lots to look
out for. And I, you know, expect in the
next week or so that we get the, the quarterly.
I mean the just to round out on ramp up, they're expecting a, a
fair bit like this chart. You're not getting exact
numbers, but there were some numbers put to what they would
do over the ramp up five month period which was £600,000 and
then they're saying they'll be at steady state by halfway
through the financial year. That indicates one and a half
million pounds. I saw a one broker estimate
which was less than half of that.
I don't think they'll get to that number.
I'd be mighty impressed if they do.
That's a lot to sort of churn out for that kind of period and
I do think the expectation is quite a bit below what they've
said there. So we'll wait and see what they
come up with. It'll come around bloody pretty
quick with Q325. It sure will, Alan do you.
They'll be going gangbusters right now, yes.
Oh, very good. Well, we've got a bloody settle
in for another uranium yarn after this.
Five fence to go. Oh.
Right, right. Oh, thank you all the thank you
to you all and great to have you back JC.
Thanks man. Sitting there the whole freaking
time. Good to have to be a melon in
here, right? Thank you to all the other great
partners who who all have great melons.
Mineral mining services, grounded or called Natalie Good
looking rooster. The same big ground support
division. Oh, beers with Derek Kurtzerbix,
CRE insurance beers with them yesterday beers, beers, beers
due for a beer with Drewba Kaydra.
He was popping in today. Oh no dice Sack guy wet the
baby's head. Nathan dice buddy.
Saltbush contracted and get wet solutions that a few beers with
Maddie at golf you're Maddie hall.
You're Geo, this is babe. Just to check if there's, they
probably did the ultrasound. So yeah.
Makes sense guys. The information contained in
this episode of Money of Mine is of general nature only and does
not take into account the objectives, financial situation
or needs of any particular person.
Before making any investment decision, you should consult
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