All Eyes on Jadar + Red 5’s Next Move

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Righto buddy Motors Happy Monday
GC How was your barn me just

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then?
You know what, Maddie?

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I didn't actually get a barn me
today.

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Why don't you go?
No, no.

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So I went to saw Q&T now going
on a bit of a bit of clean

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eating post post diggers to feel
a bit better about myself.

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So I went to Q&T at let's say at
lunch bar.

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I said QTI need something a bit
healthier today.

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What have you got for me?
So they use their culinary X

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Factor.
It's to recommend me a roast

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pork bowl and it was actually so
good.

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And you know who else does that?
A lot access mining technology.

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So you went to them with a
request a problem.

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Q&T are the trusted barn me
advisers in bloody Australia

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essentially.
Pretty much quite the metaphor

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for Axis being the trusted
advisor for drill survey

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instrumentation.
Experts in what they do, always

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available to help their clients
when they're in a sticky

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situation.
Ohh, turnkey solution, JD.

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G'day, JD.
OK, I love how do you I love how

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the roast pork bowl was the the
healthy option to cleanse you

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out of a week of drinking
Pierce.

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Better than crispy chicken I
guess.

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Oh, JC's had six saunas this
weekend.

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Oh.
Literally cleansed, right?

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We're gonna be going on today.
We're gonna be to.

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We're gonna get into.
What's gonna happen?

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What are red gonna do?
Next we've we've started at red

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five and then going down into
the Leonora Laverton abyss

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essentially, JD, you got a bit
you're you're our foreign

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correspondent for what's going
on in Serbia with Rio and black

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rocks lithium on holy snap of
duck shit.

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Yeah, fair bit on, on X and
pretty much every mainstream

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media channel under the sun
reporting on that one.

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And then there was a few other
bits and pieces out.

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We spoke about beach energy and
there their strategy that came

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out a couple months ago.
Now they've had a a massive

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downgrade today on reserves.
So they're getting whacked.

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And the other one was Galan,
remember on Monday of Diggers,

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this supposed takeover offer
came out of out of nowhere

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really late on the day the AFR
reported it.

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And yeah, there's been a bit
more water under the bridge

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since then, so we'll touch on
that one later on.

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Beautiful JC.
Now before we get started, oh

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I'm glad to see everyone enjoyed
our unofficial Diggers and

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Dealers awards.
But one story I forgot to add to

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your Best on Grand Award was the
fact that you received some

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phenomenal praise on the potty
and the Director's Special from

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a very highly regarded head of
the Insto desk at one of

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Australia's biggest stockbroking
houses.

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And he even went on to offer you
a job on the desk should money

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or mine go put.
So guys and girls who are on the

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desk and just want to excel at
life, get that Comm up in this

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market.
Get onto the director's special

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links in the show notes.
But jeez, Maddie, I reckon you

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be an absolute animal.
I love it on the desk.

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I'll be like mate, I'll be like,
I'd make everyone on the other

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line end of the line feels
special.

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It'd be absolutely love it.
I'd love, I'd love to.

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Hear the the sign off you adopt
you know, if we got a a go

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Australia or something the
Maddie version of that let's.

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Make money.
I mean, forget the Wolf of Wall

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Street, we've got the the dingo
of Saint George's Terrace.

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Oh, actually, let's play the
snippet like you know how the

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oh, Jordan Belfort did his Steve
Madden like big ramp up for the

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dare slot.
I'd love to see you do something

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like this.
You'd.

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Be ferocious.
You'd be relentless.

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You'd be telephone fucking.
Let's knock this motherfucker

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out of the box.
Oh, oh, I love you work JC,

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Right.
We better get onto the news.

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Let's get through too much fun.
OK, and just before you start,

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Maddie, just a Ding, Ding, Ding
for me on Genesis.

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Oh there you go you got bloody
sneaky Ding Ding Dings

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everywhere JC right now.
Let's get into it then.

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So this this coming up last
week, which was essentially Red

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Red 5 selling their own shares
sort of in.

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Yeah, effectively.
And this, this comes from the, I

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guess the history of Silver Lake
buying the stake in Red Five and

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then Red 5 and Silver Lake
merging.

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And there's been this, this set
of shares sitting there that can

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either be sold to the market to
bring in money or they could

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essentially cancel them 'cause
like Silverlight could sell them

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to Red 5, which is essentially
selling it to themselves.

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It's like a buy back
effectively.

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But take us through what's
happened here.

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Alrighty, so Red last week sold
around 412 million red shares it

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acquired through this process.
They originally bought Silver

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Lake, originally bought them for
108 million and they sold them

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last week for 137,000,000.
So a very tidy little 30 million

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profit there.
So Red now have cash and bullion

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of almost $500 million and no
debt lens discussion and tone on

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on this particular matter.
These these red shares was was

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mentioned in his diggers Prezzo
last week and it gave him the

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way he talked about it and the
tone at least to gave me the

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impression that this is sort of
a medium term thing they were

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looking at sort of dealing with
and evaluating.

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There was gonna be some action
on it by June of next year.

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Have a listen to what he said
here.

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The unique situation of holding
6% of our shares provides a

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potential non diluting source,
non dilutive source of liquidity

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out to June 2025.
The investment has generated a

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strong return and we now have
significant flexibility to

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realise this return, which has
only been somewhat recognised by

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the market today through either
a recycling of the capital or

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cancellation of the shares.
So then literally the next day

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the there was a block trade to
to sell the.

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State like it was going to be a
bit more Elon like.

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Yeah, No, it's definitely going
to some, whether they cancelled

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the shares or sold the shares,
it was definitely going to be

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happening at some stage.
But one could definitely read

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into the mismatch between how
Len was talking about it versus

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sort of the very expedient
nature of what was actually

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done.
And it, it doesn't seem like

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they were trying to take
advantage of, you know, a

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rocketing share price or
something because the stock's

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been off about 2025% since three
months ago.

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So that leads us to believe that
there must be some near term

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need for the cash to sort of
exercise this option right now

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and especially in sort of
cancelling the shares.

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But what actually is that?
Yeah.

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So like if they so they've
cancelled it, they've now got

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more cash, but they're they
haven't really, they haven't

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really gained anything because
it was classed as a listed

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investment before that.
But if they cancelled it, they

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would have had less shares on
issue and like maybe had a

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better, you know, price, share
price almost.

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What's the play Earnings per
share?

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Yeah, No, that's right.
So it had, it would have had a

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similar impact to say a, a, a
share buyback or something like

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that.
So I mean, as far as the options

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on the table for them with this,
this huge pile of cash, I mean,

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here's a snapshot from the Reds
Diggers presentation on their

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FY25 outlook and priorities.
And that sort of gives us a few

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hints.
I mean, King of the Hills or or

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cough as it's known, a lot of
options there as far as doing

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the northern and the southern
cutback.

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They've got at least 2,000,000
ounces in resource between those

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two.
You know, they could expand the

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mill which is currently
operating at nameplate.

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And they say in their
presentation that the the cough

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mill is constrained, sorry,
cough is mill constrained.

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They've got about 7 million
tonnes in all stockpiles at the

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moment, let alone the extra or
from cutbacks, exploration and

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anything else, you know, outside
of red that they might choose to

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pursue.
And they're processing costs,

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you know, super cheap there.
You know, could we see a sugar

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zone race star?
I don't know.

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I feel like there's more
interesting and exciting options

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in the in the local asset based
than than sugar zone.

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Oh.
My, I've got some comments about

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that later, José, José, we'll.
Get on to that.

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Very good tidying up the hedge
book could be an option.

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They've got around 290,000 oz at
Aussie $2769 an ounce for

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delivery between FY25 and FY20
7.

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Mind you, this is just like
roughly 2/3 of, you know, this

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year's current production and
about 7% of reserve.

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So it's not massive, but.
That could what, 250 mil out of

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the money about that?
Yeah, so I mean it.

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I mean, 250 mil is 2 50 mil,
right?

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So hedge book cleanups like for
for Capricorn and Catalyst we've

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seen recently have worked pretty
well in a rising gold price

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market.
So, you know, that could be an

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option.
They could do a, you know,

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special dividend, a share
buyback.

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But here's the juicy one.
Could they do some M&A?

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Here's what Len has to say about
M&A in his recent Diggers

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presentation.
There's always a lot of noise

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around M&A, particularly for
those who are not in the arena.

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The merger was underpinned by
the strategy to combine the

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strengths of two companies to
leverage the compelling

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commercial logic to create a
stronger, better company with a

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platform for further growth.
It was not about trying to fix

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the problem or combine more of
the same.

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Oh, we're outside the arena and
we love talking about M&A,

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whether it happens or.
Not let's talk about it, Ted.

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Good.
Fun, Oh, what a day job.

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Oh, it's it's very interesting
where they're sitting.

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They've got a shit load of cash
now and then.

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And this all I guess makes them
very appealing for if someone

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did want to go with them and we
want to expand the king of the

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Hill mill and we got bloody half
a billion dollars sitting in the

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bank account.
Very appealing because I haven't

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released any FY25 guidance yet.
OK, so I guess you got you got

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your got your eyes peeled a bit
to see if now I've talked about

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it divesting some of the the
smaller silver like assets,

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maybe spinning sugar zone out
into another vehicle as a North

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American play with another North
American Gold Bond or something.

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There is some links with other
smaller ASX listed companies and

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ex Silver like people that have
North American assets.

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Look, word on the decline the
contractor change out at Rothsay

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is having some hiccups so I just
yeah, I I still wouldn't be

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00:11:06,880 --> 00:11:10,360
surprised to see red 5 and
Silver Lake just become red 5

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again, but.
Just with more money.

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00:11:12,880 --> 00:11:17,320
With heaps of cash, I'll just
Yeah, I just think that so yeah,

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00:11:17,320 --> 00:11:20,880
until they we see some guidance
about what this year's gonna

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00:11:20,880 --> 00:11:25,040
look like with what they've got
at the moment, Yeah.

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00:11:25,040 --> 00:11:27,280
Got me your eyes peeled, JC.
No, very good.

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00:11:27,600 --> 00:11:34,640
So as far as the the M&A angle
we'd like to throw, this is

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00:11:34,640 --> 00:11:39,640
rabbit wire #1 magnetic.
And to be honest, I think when

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we went through this exercise, I
sort of felt a certain way

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before doing the work, and I
feel a bit of a different way

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00:11:45,960 --> 00:11:47,320
after.
So let's let's go on.

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00:11:47,320 --> 00:11:49,560
The Jay dude, I believe we want
a bit of research.

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We've been mate, me and JC have
been on WAMEX and everything

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00:11:53,080 --> 00:11:56,640
today like we are on fire.
Converting longitude and

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latitude to easting and
northings and stuff.

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It's just like we.
Gotta, but once you get in deep,

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geez, can't things change,
Jason?

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00:12:04,120 --> 00:12:07,040
Oh, it's amazing.
So what was your, what was your

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00:12:07,040 --> 00:12:09,720
thoughts before doing the
research then seeing as you say,

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00:12:09,720 --> 00:12:10,960
there's there's been a bit of a
change?

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00:12:10,960 --> 00:12:13,000
Yeah.
So I mean, look on, on the face

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00:12:13,000 --> 00:12:15,640
of it, it is, you know, outside
the grey.

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00:12:15,640 --> 00:12:19,440
And I mean we've touched on this
in our fantastic gold piece we

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put out the other week.
So check that out.

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00:12:21,920 --> 00:12:27,720
It is pretty much one of the
larger undeveloped open pit

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assets is not held by a major in
WA pretty much, yeah, other than

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00:12:35,040 --> 00:12:40,400
degrade in Ozgold.
It's in such an active region,

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00:12:40,400 --> 00:12:44,920
not just operationally, but M&A
wise as well.

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00:12:45,200 --> 00:12:48,600
And there's a lot of
underutilised processing

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00:12:48,600 --> 00:12:50,160
infrastructure in that region as
well.

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So on the face of it, you know,
it sort of does it, it does tick

224
00:12:54,320 --> 00:12:57,280
those sorts of boxes as far as
and you know an interesting

225
00:12:57,280 --> 00:13:00,600
proposition.
But like we always say, you know

226
00:13:00,600 --> 00:13:03,160
the devil is always in the
details.

227
00:13:03,160 --> 00:13:05,440
So let's get into that a bit
now.

228
00:13:05,440 --> 00:13:11,320
So Magnetic, they're now capped
it around just over $400 million

229
00:13:11,320 --> 00:13:14,400
and they're one of the only
stocks that went up last week

230
00:13:14,760 --> 00:13:18,640
and on big volume as well.
Admittedly, they did put out an

231
00:13:18,640 --> 00:13:22,480
update to their PFS they did
earlier in the year.

232
00:13:22,480 --> 00:13:25,880
So here's here's Magnetic on the
Spark chart.

233
00:13:26,000 --> 00:13:27,720
And that was that.
And that's pretty high volume

234
00:13:27,720 --> 00:13:31,720
for them 'cause there's not much
free float with magnetic, is

235
00:13:31,760 --> 00:13:32,920
there?
No, that's right.

236
00:13:33,000 --> 00:13:35,720
It's pretty tightly held between
the major shareholders.

237
00:13:35,720 --> 00:13:38,640
So that is the to have a period
of quite sustained high volume

238
00:13:38,680 --> 00:13:42,160
is a bit unusual.
But like I said, they did put

239
00:13:42,160 --> 00:13:45,880
that pretty interesting PFS out.
Major shareholders, which are

240
00:13:45,880 --> 00:13:47,080
funny.
I'll bring them up now.

241
00:13:47,560 --> 00:13:51,040
Chinese and Dial Alcock.
Just to throw something into

242
00:13:51,040 --> 00:13:52,480
some.
Pics get some checked dollars

243
00:13:52,600 --> 00:13:54,000
out.
Western Australian property

244
00:13:54,000 --> 00:14:00,640
developer so and like I said
before, Magnetic appears to be

245
00:14:00,840 --> 00:14:04,520
one of the larger undeveloped
assets that isn't owned by Major

246
00:14:06,360 --> 00:14:10,200
in in the region and that's open
pit as well.

247
00:14:10,200 --> 00:14:12,840
So let's set the scene and let's
take a look at the map.

248
00:14:12,840 --> 00:14:15,920
This is we'll pull up the map
here from red fives

249
00:14:15,920 --> 00:14:18,640
presentation.
Magnetic is roughly where that

250
00:14:18,640 --> 00:14:23,000
little red dot I've drawn is
between Goldfields Granny Smith

251
00:14:23,000 --> 00:14:25,160
three and a half million tonne
per annum plant which is

252
00:14:25,160 --> 00:14:29,400
operating about 50% below
capacity and the the town of

253
00:14:29,400 --> 00:14:32,400
Laverton.
Genesis is Mount Morgan's 2.8

254
00:14:32,400 --> 00:14:34,840
million tonne per annum, which
is in care and maintenance at

255
00:14:34,840 --> 00:14:36,640
the moment.
About a year away from

256
00:14:36,640 --> 00:14:39,720
restarting is not too far to the
West.

257
00:14:39,720 --> 00:14:41,160
Both I.
Think, I think it's about 10 to

258
00:14:41,160 --> 00:14:43,680
15 KS or.
Something that's quite close and

259
00:14:43,680 --> 00:14:47,560
yeah, and then Grady Smith's
about 35 KS away.

260
00:14:47,920 --> 00:14:52,000
And then if you look further to
the West, you'll see Red Fives,

261
00:14:52,000 --> 00:14:55,320
King of the Hills, five and a
half million tonne per annum,

262
00:14:55,880 --> 00:15:00,560
you know, mine and plant and
that's around 150 KS away from

263
00:15:01,360 --> 00:15:07,280
magnetics Lady Julie Asset now.
So what there's a, as you said,

264
00:15:07,280 --> 00:15:12,400
it doesn't sort of stack up as
logical, but we've seen Silver

265
00:15:12,400 --> 00:15:15,880
Lake, which is now Red Five, do
some things that haven't been

266
00:15:15,880 --> 00:15:19,520
too logical to do with Genesis.
No, that's right, history.

267
00:15:19,560 --> 00:15:24,760
We certainly can't forget recent
history, the Battle of Leonora,

268
00:15:24,760 --> 00:15:28,440
which certainly underpinned at
the beginning of this podcast

269
00:15:29,320 --> 00:15:32,280
for Saint Barbara's Leonora
assets.

270
00:15:33,160 --> 00:15:38,080
Silver Lake sort of bought a pre
pre bid stake in Red, which at

271
00:15:38,080 --> 00:15:40,240
the time sort of seemed quite
strange because there was no

272
00:15:40,240 --> 00:15:44,520
sort of, you know, direct,
immediate, obvious operational

273
00:15:44,520 --> 00:15:47,280
synergies.
And many at the time sort of

274
00:15:47,280 --> 00:15:49,720
argued it was to sort of piss
off Genesis.

275
00:15:51,240 --> 00:15:54,520
And then, you know, they then
accepted Silver like then

276
00:15:54,520 --> 00:15:57,040
accepted a deal from Red where
they got acquired at a bit of a

277
00:15:57,040 --> 00:16:00,880
discount.
And basically the sort of a bit

278
00:16:00,880 --> 00:16:03,680
of a feeling that there's the
long game is some sort of

279
00:16:03,680 --> 00:16:08,800
eventual tie with with Genesis.
So you know, how how do they

280
00:16:08,800 --> 00:16:13,840
make Genesis need red more than
Red needs Genesis?

281
00:16:14,800 --> 00:16:18,240
And that one way to do that is
land banking, their regional

282
00:16:18,240 --> 00:16:22,040
synergies in the area.
So you know, Mark Morgan's needs

283
00:16:22,040 --> 00:16:24,920
higher grade and you know more
feed where they're going to get

284
00:16:24,920 --> 00:16:28,880
it from it.
The Lady Julie asset purely on

285
00:16:28,880 --> 00:16:32,360
a, you know, a proximity basis
makes sense to fit into the

286
00:16:32,360 --> 00:16:35,040
Genesis or or Goldfields
portfolio.

287
00:16:36,800 --> 00:16:39,800
And it's, I think it's pretty
bloody obvious it's up for sale.

288
00:16:39,960 --> 00:16:42,640
Of madness.
I mean, you only have to have

289
00:16:42,680 --> 00:16:47,320
George Sekoledy's literally body
almost explicitly say it in his

290
00:16:47,320 --> 00:16:49,560
digs presentation.
Have a listen to this.

291
00:16:51,080 --> 00:16:54,960
The Genesis and Morgan's
operation, they're on caring

292
00:16:54,960 --> 00:16:58,040
maintenance and the goldfields
at Granny Smith.

293
00:16:58,760 --> 00:17:02,960
In both cases, we believe that
there's a chance to be

294
00:17:03,240 --> 00:17:06,280
interested in our project that
have been in our data room for a

295
00:17:06,280 --> 00:17:08,880
while.
And at the same time, we're

296
00:17:08,880 --> 00:17:10,599
increasing the size of what we
have.

297
00:17:10,599 --> 00:17:12,200
So we think there's synergy
there.

298
00:17:12,560 --> 00:17:14,440
So they're in the data room.
They're in the data.

299
00:17:14,440 --> 00:17:16,440
Room if you didn't know.
So there you go.

300
00:17:17,839 --> 00:17:21,200
So for so for context, so the
Lady Julie project that Magnetic

301
00:17:21,200 --> 00:17:27,599
has it's 1.8 million oz at 1.7
grammes a tonne gold in an open

302
00:17:27,599 --> 00:17:30,040
pit resource.
It's obviously near with these

303
00:17:30,040 --> 00:17:32,000
mills and processing
infrastructure.

304
00:17:32,360 --> 00:17:37,560
They put out a updated PFS on
the first day of dig is just you

305
00:17:37,600 --> 00:17:41,520
know, perfectly timed as they
always do, you know, sort of

306
00:17:41,520 --> 00:17:46,960
putting forward a 104,000 oz per
annum production profile for

307
00:17:46,960 --> 00:17:51,960
eight years, almost a billion
dollar pre tax project MPV eight

308
00:17:52,040 --> 00:17:57,200
at 3200 Aussie mind you spots
another, you know, 500 bucks an

309
00:17:57,200 --> 00:17:59,120
ounce more than that now as
well.

310
00:17:59,120 --> 00:18:03,600
I was you looked at building a
2.2 million tonne per annum mil

311
00:18:03,600 --> 00:18:06,920
that they said is planned.
If they did go out alone for

312
00:18:06,920 --> 00:18:10,920
74,000,000 bucks, I don't know,
I reckon if you you might be

313
00:18:10,920 --> 00:18:12,960
able to get it built for that in
China, but I don't know, she

314
00:18:12,960 --> 00:18:14,920
might be a bit tough out at
Laverton to.

315
00:18:14,920 --> 00:18:17,520
Yeah.
Sub hundred mil for that.

316
00:18:18,240 --> 00:18:21,160
I saw a few of the, the brokers
sort of chirp in and the, the

317
00:18:21,160 --> 00:18:25,160
numbers they'd kind of put to it
was about double the, the CapEx

318
00:18:25,160 --> 00:18:28,560
that the company had provided.
And you know, this is, this is

319
00:18:28,560 --> 00:18:30,160
APFS.
So we'll kind of see what comes

320
00:18:30,160 --> 00:18:33,320
out in, in the DFS.
But there was also some kind of

321
00:18:33,320 --> 00:18:36,320
discussion that they they might
tweak the sizing like you said

322
00:18:36,320 --> 00:18:39,240
maybe 2.2 million tonne per
annum, but they might look at a

323
00:18:39,240 --> 00:18:43,440
slightly smaller thing with
bearing in mind that this could

324
00:18:43,440 --> 00:18:45,480
go underground.
That was their sort of

325
00:18:45,480 --> 00:18:47,400
commentary in the in the longer
term.

326
00:18:47,640 --> 00:18:51,160
Yeah, yeah.
And I think like the other ones

327
00:18:51,160 --> 00:18:54,000
that I've heard might be in the
data room or you'd think might

328
00:18:54,000 --> 00:18:59,360
be as well would be like your
Regis and Anglo Gold Ashani

329
00:18:59,360 --> 00:19:02,120
cause Tropicana and Sunrise Dam
are in very close.

330
00:19:02,120 --> 00:19:06,680
They're not too far away either.
There as well so hey, everyone's

331
00:19:06,680 --> 00:19:09,200
probably everyone goes in the
data room all the time for

332
00:19:09,200 --> 00:19:11,560
everything no doesn't mean
you're gonna block buy the

333
00:19:11,560 --> 00:19:13,200
bloody thing but.
No, that's right.

334
00:19:13,320 --> 00:19:15,280
Don't, definitely don't take
that as a.

335
00:19:16,120 --> 00:19:19,040
It's like saying, oh, I had a
beer with Shane Warne.

336
00:19:20,640 --> 00:19:21,360
Yeah, cool.
Yeah.

337
00:19:21,520 --> 00:19:24,400
Yeah, I didn't know him.
I haven't added it.

338
00:19:24,400 --> 00:19:26,240
I played pool against David
Warner once.

339
00:19:26,440 --> 00:19:28,200
Oh, did ya?
Yeah, that's a good.

340
00:19:28,200 --> 00:19:30,200
And he introduced himself as a
different name.

341
00:19:30,200 --> 00:19:31,800
I'm like.
I know you're Dave Warner.

342
00:19:31,840 --> 00:19:35,200
I know you Dave.
Oh, that's fantastic.

343
00:19:35,320 --> 00:19:40,880
Anyway, so yes, OK, you've set,
you've set a good scene there,

344
00:19:41,440 --> 00:19:44,720
GC Yes.
When did your when did your life

345
00:19:44,720 --> 00:19:48,480
start to change?
My life started to change when

346
00:19:49,120 --> 00:19:54,840
we started looking at appendices
and Geo view and Webex is when I

347
00:19:54,840 --> 00:19:58,560
just have a few questions so
because.

348
00:19:58,560 --> 00:20:03,000
I and because I just trying to
and where I was where I landed

349
00:20:03,000 --> 00:20:05,560
as well is just trying to think
of this will be.

350
00:20:06,760 --> 00:20:09,800
Much of a bug.
Even if Red did purchase this

351
00:20:09,800 --> 00:20:13,520
for whatever reason, would it be
a bargaining chip to get

352
00:20:13,520 --> 00:20:16,320
Genesis?
I'm not sure we're going to

353
00:20:16,320 --> 00:20:18,760
figure that out, right?
Let's figure it out together.

354
00:20:19,440 --> 00:20:23,720
Change of life point #1.
The magnetic price tag is

355
00:20:23,720 --> 00:20:27,680
getting expensive now market
cap, like we said before,

356
00:20:27,680 --> 00:20:30,000
they're just over 400 million
market cap now.

357
00:20:30,360 --> 00:20:34,440
If you whack the standard 30% M
and a premium, I think arguably

358
00:20:34,440 --> 00:20:39,840
given the shortage of sort of
big simple open pit assets in

359
00:20:40,040 --> 00:20:43,600
Australia or WA even you could
argue that premium might be even

360
00:20:43,600 --> 00:20:46,720
more if a prospective deal went
ahead.

361
00:20:46,960 --> 00:20:51,160
So that's taking you to a ticket
size of, you know, five, $600

362
00:20:51,200 --> 00:20:56,560
million and you haven't actually
built anything just yet.

363
00:20:56,560 --> 00:20:58,240
Yeah.
And and because it's got that

364
00:20:58,240 --> 00:21:02,600
low free float, it's like
whether I think of the, it's

365
00:21:02,600 --> 00:21:06,000
been turned to me price
discovery in terms of what it

366
00:21:06,000 --> 00:21:09,520
what it's trading at at the
moment on a very low free float,

367
00:21:09,520 --> 00:21:13,000
it's like, well, is that the
most accurate valuation for this

368
00:21:13,000 --> 00:21:15,960
stock?
We don't know and that certainly

369
00:21:16,240 --> 00:21:21,400
would have an impact.
Probably the bigger question for

370
00:21:21,400 --> 00:21:26,520
me is PFS with no reserve And
look, I haven't been in the

371
00:21:26,520 --> 00:21:30,080
market as long as some others
which you know that's fine.

372
00:21:30,080 --> 00:21:35,360
But in the time that I have,
I've rarely if not ever seen

373
00:21:35,760 --> 00:21:40,600
something that's been at APFS
level or beyond not have a

374
00:21:40,600 --> 00:21:43,040
reserve.
I just and even in our recent

375
00:21:43,040 --> 00:21:45,480
gold piece we did that was the
case.

376
00:21:45,840 --> 00:21:51,560
Everyone who had APFS onwards
had a reserve except magnetic.

377
00:21:51,560 --> 00:21:55,360
But, and the question isn't more
so why wouldn't you?

378
00:21:57,080 --> 00:22:01,920
Why wouldn't you put one forward
and getting stuck into the

379
00:22:01,920 --> 00:22:05,520
appendices a little bit, sort
of, I don't know, gave us some

380
00:22:05,520 --> 00:22:11,000
hints or some sort of answers.
I mean, having a look at the

381
00:22:11,440 --> 00:22:14,160
excerpt from the updated PFS
appendix.

382
00:22:15,040 --> 00:22:21,480
And this is more so in relation
to, you know, delineating an oil

383
00:22:21,480 --> 00:22:26,240
reserve said the current focus
is on expanding the resource

384
00:22:26,240 --> 00:22:29,800
base rather than infill and the
resource to be mined in the

385
00:22:29,800 --> 00:22:31,760
first four years is largely
indicated.

386
00:22:32,000 --> 00:22:35,160
So would fit the probable
reserve category.

387
00:22:35,400 --> 00:22:39,800
Now that makes in light of a few
single asset gold developers in

388
00:22:39,800 --> 00:22:43,040
recent history.
We've heard this before and it

389
00:22:43,040 --> 00:22:47,280
sort of makes us a little
nervous, you know, and they've

390
00:22:47,280 --> 00:22:50,200
appointed Argonaut as dead
advisor.

391
00:22:50,200 --> 00:22:53,840
So we can imagine, in light of
the recent Daisy and Gascon

392
00:22:53,840 --> 00:22:57,120
Caledis sort of debacles, any
potential project financier.

393
00:22:57,720 --> 00:23:01,200
Look, they would do this anyway,
but even more so now they would

394
00:23:01,200 --> 00:23:05,000
want a very high level of
confidence in the geological

395
00:23:05,000 --> 00:23:09,040
model.
And so that infill work will

396
00:23:09,040 --> 00:23:11,520
have to come eventually.
Yeah.

397
00:23:11,520 --> 00:23:13,960
And and like look, yeah.
And it is coming across that

398
00:23:13,960 --> 00:23:17,240
there needs to be a lot more
work done on that resource

399
00:23:17,240 --> 00:23:20,600
definition because and it even
says in the job table here that

400
00:23:20,920 --> 00:23:24,200
no independent verification of
drilling sections has yet been

401
00:23:24,200 --> 00:23:25,520
carried out.
Yeah, right.

402
00:23:25,520 --> 00:23:29,680
That would be something that
banks and like people providing

403
00:23:29,680 --> 00:23:33,800
debt, I assume would require of
course, 'cause like you know

404
00:23:33,800 --> 00:23:36,480
like the hits look good inside
as the resource done, but look

405
00:23:36,480 --> 00:23:39,400
20 metres at 3.8 grammes for a
drill hit.

406
00:23:39,400 --> 00:23:41,640
You'd bloody take that any day.
The friggin wait.

407
00:23:41,640 --> 00:23:45,440
But you you say on the maiden
mineral resource estimate that

408
00:23:45,440 --> 00:23:49,840
73% of the drill hole metres,
130,000 metres worth of call

409
00:23:50,320 --> 00:23:52,480
well worth of chips were done
with RC.

410
00:23:52,560 --> 00:23:55,720
Yep, so and you also which.
Is pretty standard.

411
00:23:55,720 --> 00:23:58,760
Yeah, yeah, yeah.
And you also see it here where

412
00:23:58,760 --> 00:24:04,200
it talks about like the the risk
with RCS, like drill holes,

413
00:24:04,400 --> 00:24:08,400
samples are sometimes wet, which
may result in sample bias.

414
00:24:08,400 --> 00:24:12,280
So like, and what happens there,
like the muddy muddiness of the

415
00:24:12,280 --> 00:24:16,080
sample coming back up the string
can sort of bits of gold can get

416
00:24:16,360 --> 00:24:20,120
stuck and then sort of smear
over a longer length side look.

417
00:24:20,120 --> 00:24:22,520
And it's just an example why
they're having an independent

418
00:24:22,800 --> 00:24:26,120
geologist sign off on all the
historical drilling is, you

419
00:24:26,120 --> 00:24:29,640
know, very important.
It's definitely very useful to.

420
00:24:29,960 --> 00:24:35,960
Make a bloody bank happy.
So yeah, that's yes.

421
00:24:36,480 --> 00:24:40,240
I I still I just find that
really strange in this day and

422
00:24:40,240 --> 00:24:45,400
age and sort of going along on
to the next point there.

423
00:24:45,600 --> 00:24:50,680
There isn't currently an ML or a
mining lease on the Pro SEC just

424
00:24:50,680 --> 00:24:51,680
as yet.
That's.

425
00:24:51,680 --> 00:24:54,360
Probably that's probably the
most thing that gets undecided

426
00:24:54,360 --> 00:24:57,960
the most with M and I I'd reckon
is like whether it is on a

427
00:24:57,960 --> 00:25:01,360
mining lease or not or
exploration or prospecting

428
00:25:01,640 --> 00:25:03,680
lease.
So 'cause that not having that

429
00:25:03,680 --> 00:25:06,960
mining lease can slow down, that
could be like another freaking

430
00:25:06,960 --> 00:25:09,680
two years.
Like 'cause they, they, they did

431
00:25:09,680 --> 00:25:14,760
put mining lease application in
for Lady Julie N for last year,

432
00:25:14,760 --> 00:25:15,680
yeah.
Late in December.

433
00:25:15,720 --> 00:25:19,200
Yep, that's where it hosts most
of it, and that's where the

434
00:25:19,480 --> 00:25:23,560
where the project's gonna be.
But like that could.

435
00:25:24,080 --> 00:25:26,520
So it's in the wings, but it's,
there's still, there's still a

436
00:25:26,520 --> 00:25:30,480
bit bit to go.
And you know, again in the, in

437
00:25:30,480 --> 00:25:34,600
the lovely PFS appendices, they
say that they're still working

438
00:25:34,600 --> 00:25:38,280
on ML applications, so that sort
of other deposits as well and

439
00:25:38,400 --> 00:25:42,000
wrapping a mining proposal
around the whole thing is

440
00:25:42,680 --> 00:25:46,520
underway right now.
However, it says the grant of a

441
00:25:46,520 --> 00:25:51,280
mining lease and approval of a
mining proposal is subject to

442
00:25:51,840 --> 00:25:54,880
signing of a native title
agreement, negotiations for

443
00:25:54,880 --> 00:25:59,520
which are currently in progress.
So we all know how slow project

444
00:25:59,520 --> 00:26:03,280
approvals are going these days,
you know, Australia, WA in

445
00:26:03,280 --> 00:26:06,600
particular.
So you know, by the time you

446
00:26:06,600 --> 00:26:10,480
sort of native title, then OK,
they've got the application in

447
00:26:10,480 --> 00:26:13,160
for the ML, which is fantastic.
Then they've got to get that

448
00:26:13,160 --> 00:26:15,800
granted.
Then they've got to submit a

449
00:26:15,800 --> 00:26:18,920
mining proposal, then they have
to have that approved.

450
00:26:19,160 --> 00:26:24,200
Then they've got to do ADFS and
you know, if FID and funny there

451
00:26:24,200 --> 00:26:28,880
is at least, you know, another
at least another 12 months, if

452
00:26:28,880 --> 00:26:31,400
not more.
There's a lot more water to go

453
00:26:31,400 --> 00:26:33,920
into the Bridget.
Not saying it's not going to get

454
00:26:33,920 --> 00:26:37,480
there, but you know, we hope
that it does.

455
00:26:37,520 --> 00:26:40,960
But there's still a lot more
work that needs to be done as as

456
00:26:40,960 --> 00:26:43,720
part of getting a mine up and
underway.

457
00:26:44,120 --> 00:26:46,240
It just goes to exactly what we
spoke about as one of the

458
00:26:46,240 --> 00:26:49,480
takeaways from Diggers last
week, right, permitting and all

459
00:26:49,480 --> 00:26:52,400
these things taken a bit longer
than they used to.

460
00:26:52,440 --> 00:26:55,560
And I mean for for this company,
it seems kind of appropriate

461
00:26:55,560 --> 00:26:59,080
that the PFS level they're going
to work that in tandem while

462
00:26:59,080 --> 00:27:02,760
hopefully they have a you know,
diamond programme and then

463
00:27:02,760 --> 00:27:05,000
tighten up the drilling and
build the confidence in the

464
00:27:05,000 --> 00:27:08,360
resources all sort of comes
together over time, but it takes

465
00:27:08,360 --> 00:27:09,600
time.
I think that's the take away.

466
00:27:09,600 --> 00:27:11,960
Oh, and you look at what what
line town in Bellevue went

467
00:27:11,960 --> 00:27:14,760
through to get their native
title agreements and the people

468
00:27:14,760 --> 00:27:18,320
and energy that goes into that
process for them to get to the

469
00:27:18,320 --> 00:27:21,880
stage of mining now, it's a
huge, huge effort, huge job.

470
00:27:22,040 --> 00:27:25,160
100%.
Is there This is where big Wham

471
00:27:25,160 --> 00:27:27,600
X got involved.
Equal hair goods Wham X.

472
00:27:27,600 --> 00:27:29,920
I'm a friggin that's my new
That's my front tab.

473
00:27:30,040 --> 00:27:34,240
Now you look at look at where
the pit is.

474
00:27:34,560 --> 00:27:38,600
So I'll bring up that there that
Lady Julie N pit is right on

475
00:27:38,600 --> 00:27:41,920
that northern extent like
literally looks like a tenement

476
00:27:42,120 --> 00:27:48,200
batting the tenement boundary.
And look that this square.

477
00:27:48,200 --> 00:27:52,400
I'll I'll bring up the the Wamex
stuff, the square with the

478
00:27:52,400 --> 00:27:53,840
little top right corner chopped
off.

479
00:27:53,840 --> 00:27:57,520
That's the magnetic tenement.
They did recently acquire the

480
00:27:57,520 --> 00:28:00,960
tenements to the east from
Rincon resources.

481
00:28:01,160 --> 00:28:05,240
So that's for the potential sort
of East extensions down dip,

482
00:28:06,480 --> 00:28:09,360
but.
Look at your Webex.

483
00:28:09,720 --> 00:28:12,400
Screenshot scroll through so
many Webex pitches.

484
00:28:12,400 --> 00:28:15,640
But right to the north of the
Lady Julie N pit boundary are

485
00:28:15,640 --> 00:28:18,760
two tenements owned by Focus
Minerals and that's where the

486
00:28:18,760 --> 00:28:22,240
pit abuts to at the north.
And I, I just think looking at

487
00:28:22,240 --> 00:28:26,680
where that's all situated, that
would make things a bit

488
00:28:26,680 --> 00:28:28,280
difficult.
At the moment.

489
00:28:28,280 --> 00:28:33,720
It's like especially I'm I'm not
sure if the ore body if it just

490
00:28:33,720 --> 00:28:37,920
goes out to the east to Rincon,
if there's any other extensions.

491
00:28:37,920 --> 00:28:40,600
That go the other way.
At depth go venture into the

492
00:28:40,600 --> 00:28:44,240
focus things to the top.
It just it just might be tidier

493
00:28:44,320 --> 00:28:47,120
owning the neighbouring one as
well.

494
00:28:47,120 --> 00:28:50,160
But I'll tell you.
But a bloody a verify model

495
00:28:50,160 --> 00:28:50,960
would be handy, right?
Oh.

496
00:28:51,400 --> 00:28:54,800
God, trying to do all these
bloody conversions and stuff on

497
00:28:54,800 --> 00:28:58,400
where it sort of sits and oh
God, the verify would have

498
00:28:58,400 --> 00:28:59,640
helped so much.
Yeah, yeah.

499
00:28:59,760 --> 00:29:02,200
And I'll just want, I want to
know if it's trending that way

500
00:29:02,200 --> 00:29:04,120
or that way.
I probably could have checked

501
00:29:04,120 --> 00:29:06,920
Azzie's and all that.
I'm, I'm, I've taken the first

502
00:29:06,920 --> 00:29:09,200
step to understanding this.
I've probably, actually, I've

503
00:29:09,200 --> 00:29:13,720
probably been a bit lazy with,
you know, reading drill tables

504
00:29:13,720 --> 00:29:17,040
and like plotting things because
I, I've only ever used verify

505
00:29:17,040 --> 00:29:20,360
models and I've just, I've just
started getting used to it.

506
00:29:20,360 --> 00:29:25,200
So I WAMEX give verify a ring
and try and integrate verify

507
00:29:25,200 --> 00:29:29,120
software into the WAMEX platform
and I'm a happy camper.

508
00:29:29,560 --> 00:29:32,480
And they could brawl fight and
the drill aisles and bloody,

509
00:29:32,640 --> 00:29:35,760
they could actually put the AI
in there to tell WAMEX where the

510
00:29:35,800 --> 00:29:40,040
probably the next Yeah, fuck it.
Unbelievable turnkey solution.

511
00:29:40,040 --> 00:29:43,400
Turnkey government should cough
up some decent money for it.

512
00:29:44,440 --> 00:29:46,880
Look at 'cause you look at Focus
Minerals as interesting ones.

513
00:29:46,880 --> 00:29:48,560
I think it's like 30 mil market
cap.

514
00:29:48,840 --> 00:29:51,600
But look at where all the ground
that they have in and around

515
00:29:51,600 --> 00:29:54,280
Laverton.
Yeah, it's freaking everywhere.

516
00:29:54,280 --> 00:29:56,920
And obviously, well, a lot to
the north of Lady Julia.

517
00:29:56,920 --> 00:30:01,560
But Focus is 63% owned by
Shandong Gold International

518
00:30:01,560 --> 00:30:04,880
Mining Corp Chinese Magnetic are
also about.

519
00:30:05,120 --> 00:30:09,240
It appears the major
shareholders make up about 30%,

520
00:30:09,240 --> 00:30:12,680
which are Chinese.
So even even a tenement sale

521
00:30:12,680 --> 00:30:17,880
from focus to magnetic would
need or vice versa or whatever,

522
00:30:17,880 --> 00:30:21,080
or be focused to magnetic,
that'd even need FURB approval,

523
00:30:21,080 --> 00:30:22,040
yeah.
Potentially.

524
00:30:22,120 --> 00:30:24,720
Yeah, let alone a frigging
merger of a Chinese to Chinese

525
00:30:24,720 --> 00:30:27,640
in Australia be a bloody, bloody
difficult one.

526
00:30:27,640 --> 00:30:31,400
So yes, I think we've we've
landed.

527
00:30:31,440 --> 00:30:33,880
Oh, and the oh and then oh and
the bloody CapEx.

528
00:30:33,880 --> 00:30:35,920
Yeah.
And the CapEx and OpEx seems to

529
00:30:35,920 --> 00:30:38,200
be a bit undercooked as well,
which you know we've sort of

530
00:30:38,440 --> 00:30:43,000
touched on in, in previous chats
and, and and newsletters as

531
00:30:43,000 --> 00:30:45,440
well.
So I guess the question here is,

532
00:30:45,440 --> 00:30:49,400
do you think Red will pop up
here just for the sake of

533
00:30:49,400 --> 00:30:52,920
frustrating Genesis?
What do you think, JD?

534
00:30:54,400 --> 00:30:57,600
I'm not sure how long a a
business strategy can just be

535
00:30:57,600 --> 00:31:00,920
the frustrated it'd.
Be good fun, it keeps you

536
00:31:00,920 --> 00:31:04,640
interested.
It would be I I, I do, I do

537
00:31:04,640 --> 00:31:07,400
think the you know, the point
you mentioned earlier, Maddie,

538
00:31:07,400 --> 00:31:10,080
of trimming down the portfolio
of getting rid of the, the non

539
00:31:10,080 --> 00:31:13,480
core as the company sort of
migrates upward in the chain and

540
00:31:13,480 --> 00:31:15,880
becomes bigger.
You know, Northern Stars a good

541
00:31:15,880 --> 00:31:18,520
example of evolution bit by bit
as they get bigger, they trim

542
00:31:18,520 --> 00:31:23,120
the the, you know, less tier one
type ones and they acquire even

543
00:31:23,120 --> 00:31:25,280
better deposits.
So that's the kind of natural

544
00:31:25,280 --> 00:31:27,800
progression of all companies.
And I think that's definitely

545
00:31:27,800 --> 00:31:30,000
going to happen with the the
more fringe assets here.

546
00:31:30,760 --> 00:31:36,240
Oh yeah, to be I don't think,
but always that really I'm

547
00:31:36,240 --> 00:31:38,280
throwing darts now things not
happening.

548
00:31:38,320 --> 00:31:40,560
Haven't I evolved?
I'm usually saying bloody trying

549
00:31:40,560 --> 00:31:42,480
to think of what's going to
happen now I'm saying what's not

550
00:31:42,480 --> 00:31:45,040
going to happen.
But I, I don't think anything

551
00:31:45,040 --> 00:31:50,080
will happen here in terms of
like Genesis are obviously

552
00:31:50,440 --> 00:31:53,240
focused on probably getting
Mount Morgan's back up and going

553
00:31:53,760 --> 00:31:55,640
even though it is 10K away or
whatever.

554
00:31:55,840 --> 00:31:59,320
But look, no mining lease, no
native title agreement, no

555
00:31:59,320 --> 00:32:01,280
mining proposal.
Probably a bit more work to be

556
00:32:01,280 --> 00:32:04,400
done on the resource and, and
everything like that.

557
00:32:04,560 --> 00:32:07,920
Even without building a mill
there, you know, it could be

558
00:32:08,400 --> 00:32:11,760
frigging 2 years away.
So if they're right starting

559
00:32:11,760 --> 00:32:14,360
Mount Morgan's, they can't get
the dirt for frigging ages

560
00:32:14,360 --> 00:32:15,560
anyway.
So look, maybe.

561
00:32:15,680 --> 00:32:18,520
It's rubbish.
Might be something that could

562
00:32:18,520 --> 00:32:23,520
come in later on, but I reckon
if Red 5 bought it for whatever

563
00:32:23,520 --> 00:32:27,400
reason that Genesis would be
like, Oh well, ain't enough to

564
00:32:27,400 --> 00:32:31,440
suck us in yet because we're
restarting Mount Morgans anyway.

565
00:32:31,440 --> 00:32:35,400
But I think more the key thing
is that if because I think

566
00:32:35,400 --> 00:32:36,760
Genesis, what have they got
about?

567
00:32:36,960 --> 00:32:41,440
I think they've got 100 and 100
odd million cash 140 mil yeah

568
00:32:41,600 --> 00:32:44,280
they've got a lot to do right
there I know they're busy

569
00:32:44,480 --> 00:32:46,160
they'll get fucking debt like
that.

570
00:32:46,520 --> 00:32:50,720
Oh big row will just walk in and
say in her over big follow but

571
00:32:50,720 --> 00:32:55,440
he but I think now red red with
all that cash as well like that

572
00:32:55,920 --> 00:32:58,080
look it it's going to happen
eventually it's just the

573
00:32:58,080 --> 00:33:02,200
timeline of when Genesis and red
five will tie up.

574
00:33:02,200 --> 00:33:06,240
I, I noticed in, if you get
where I think maybe it was the

575
00:33:06,240 --> 00:33:09,040
Aspire 400 thing in Genesis
where they were talking about

576
00:33:09,040 --> 00:33:14,360
the Leonora mill expansion
potentially to 4 million tonne

577
00:33:14,360 --> 00:33:16,720
at Gualia.
So then Tower Hill didn't go

578
00:33:16,760 --> 00:33:18,960
have to go to Mount Morgan's.
But then watching that Diggers

579
00:33:18,960 --> 00:33:23,200
presentation, it was sort of
reverted back to just talking

580
00:33:23,200 --> 00:33:27,480
about Tower Hill going to Mount
Morgan's, which I which I cannot

581
00:33:27,840 --> 00:33:31,920
personally ever see happening
for that deposit.

582
00:33:32,160 --> 00:33:35,160
Everything belongs in that king
of the hill mill.

583
00:33:35,800 --> 00:33:37,560
It's just when that actually
happens.

584
00:33:37,560 --> 00:33:41,520
But if they're going to sort of
do a lot of work in pacing this

585
00:33:41,520 --> 00:33:44,920
whole thing together, Red five's
half a billion in cash would

586
00:33:45,000 --> 00:33:47,280
that's.
Just half a billion in cash now,

587
00:33:47,280 --> 00:33:50,760
let alone what they build in the
next, you know, quarters and.

588
00:33:51,920 --> 00:33:55,000
Especially if they start
divesting stuff like yeah for

589
00:33:55,120 --> 00:33:58,240
for cash, like yeah, I think
yeah, I wouldn't.

590
00:33:58,240 --> 00:34:01,520
I wouldn't be surprised if it
happens sooner rather than

591
00:34:01,520 --> 00:34:04,760
later.
Yeah, I think with my with my

592
00:34:04,760 --> 00:34:08,239
old bank I had on the only thing
that sort of made a little bit

593
00:34:08,239 --> 00:34:14,760
of sense to me is get doing a
Remelius Spartan types, you

594
00:34:14,920 --> 00:34:20,400
know, strategic investment into
a magnetic purely for option

595
00:34:20,400 --> 00:34:22,960
value as far as putting a
foothold on it.

596
00:34:23,000 --> 00:34:27,679
And whether you wanted to
acquire the company later when

597
00:34:27,679 --> 00:34:33,000
you're ready yourself or if
someone else bit over the top of

598
00:34:33,000 --> 00:34:35,080
you, you'd make a bit of money
on your stakes.

599
00:34:35,080 --> 00:34:38,800
So you sort of ideally it's sort
of you're not losing all the way

600
00:34:38,800 --> 00:34:40,199
and you've got that option
there.

601
00:34:40,199 --> 00:34:44,800
But I think, yeah, my conclusion
after going through the weeds,

602
00:34:44,800 --> 00:34:48,480
it's, you know, definitely a
very interesting large open pit

603
00:34:48,480 --> 00:34:51,760
development story in a very
active region.

604
00:34:51,760 --> 00:34:54,159
A lot of underutilised
processing infrastructure in

605
00:34:54,159 --> 00:34:56,840
that region as well.
But like you say, Mehdi, there's

606
00:34:56,840 --> 00:35:00,000
a lot more water to go under the
bridge until this fade can

607
00:35:00,000 --> 00:35:05,560
actually get mined and put into
someone's or their own, you

608
00:35:05,560 --> 00:35:09,960
know, processing schedule.
These are out there.

609
00:35:09,960 --> 00:35:12,720
One, if it's going to happen, I
reckon it's going to be a block

610
00:35:12,720 --> 00:35:15,880
trade for Dal Lawcock steak.
Yeah, that'd be.

611
00:35:15,880 --> 00:35:18,480
Because there's there's not
really the free float or

612
00:35:18,480 --> 00:35:21,520
anything to.
So he's got 111%.

613
00:35:21,760 --> 00:35:23,640
So that'll.
Cash, well, that that can block,

614
00:35:23,640 --> 00:35:26,560
it's enough to block a
compulsory acquisition.

615
00:35:26,680 --> 00:35:29,960
It's more than 10%, Maddie.
Jeez, you.

616
00:35:29,960 --> 00:35:32,440
Would be good on the desk.
Don't you worry about me.

617
00:35:33,200 --> 00:35:36,320
Oh Bunny, give us a ring mate.
I'll pop in and do a bit of work

618
00:35:36,320 --> 00:35:39,000
experience for you Cover.
Oh, Jesus.

619
00:35:40,640 --> 00:35:42,040
Oh, there you go.
Good stuff, Jay.

620
00:35:42,080 --> 00:35:43,720
So actually I learned a lot
today.

621
00:35:43,720 --> 00:35:47,640
I did learn a bit and also as an
aside, I thought this was a bit

622
00:35:47,640 --> 00:35:51,200
cheeky for for those who are in
the know, have a listen to this

623
00:35:51,200 --> 00:35:55,160
snippet here of again, this is
Red 5 Slen.

624
00:35:56,040 --> 00:35:57,880
Who do you?
Which gold producer do you think

625
00:35:57,880 --> 00:35:59,240
you might be having a crack at
here?

626
00:35:59,240 --> 00:36:01,520
Have a listen.
We have significant financial

627
00:36:01,520 --> 00:36:06,040
strength with $520 million of
liquidity to pursue and

628
00:36:06,040 --> 00:36:10,120
internally fund projects,
exploration and growth with the

629
00:36:10,120 --> 00:36:14,400
business facing no existential
imperative to pursue M&A, an

630
00:36:14,400 --> 00:36:16,920
increasingly differentiated
position in the gold industry

631
00:36:16,920 --> 00:36:19,040
today.
Who do you reckon?

632
00:36:19,880 --> 00:36:23,000
Must be rageous, I.
Surely, Surely.

633
00:36:23,000 --> 00:36:25,720
But isn't it funny that I reason
he can say that now it's because

634
00:36:25,720 --> 00:36:27,040
he's got King of the Hill?
Because.

635
00:36:27,040 --> 00:36:28,840
I think that was.
Silver like not long ago.

636
00:36:31,880 --> 00:36:33,320
Oh, what goes around comes.
Around.

637
00:36:33,320 --> 00:36:38,840
I love it good work JC.
We've taken we're going into a

638
00:36:38,840 --> 00:36:40,880
new frontier today, mate.
Step change.

639
00:36:40,880 --> 00:36:42,280
Bloody.
Oh, brilliant.

640
00:36:42,520 --> 00:36:44,320
You wouldn't believe it.
It'll work hard when you're not

641
00:36:44,320 --> 00:36:46,160
supervising me, JD.
You should be proud.

642
00:36:46,200 --> 00:36:48,800
Rather but.
I'm very, I'm very proud of you.

643
00:36:49,000 --> 00:36:51,720
You should actually give a
couple comments onto what Wymax

644
00:36:51,720 --> 00:36:53,440
is, I think a few punters out
there, yeah.

645
00:36:54,120 --> 00:36:57,280
They're publicly available.
It's like Geo view dot WA.

646
00:36:57,280 --> 00:37:00,840
It's like WA, yeah, mineral
exploration, bloody whatever.

647
00:37:00,840 --> 00:37:03,920
It's the government website
where you can see all the all

648
00:37:03,920 --> 00:37:06,840
the tenements, whether they're
prospecting, exploration or

649
00:37:06,840 --> 00:37:08,720
mining lease.
Who owns?

650
00:37:09,240 --> 00:37:11,520
Who owns?
It takes a bit to get bloody

651
00:37:11,640 --> 00:37:13,960
used to and.
Pretty handy, hey?

652
00:37:14,080 --> 00:37:18,880
Yeah, yeah, mate, I told you
might pick up some ground, sell

653
00:37:18,880 --> 00:37:21,640
it on the desk.
Righto.

654
00:37:21,720 --> 00:37:25,520
JD Rios.
JD Rios Jadar.

655
00:37:26,920 --> 00:37:30,880
Yeah, we're we're going back to
back to Serbia and I think it's

656
00:37:30,880 --> 00:37:34,800
actually yada Maddie, I got
that, got that one after we

657
00:37:34,800 --> 00:37:37,000
spoke about it last time.
So we'll we'll play a couple

658
00:37:37,000 --> 00:37:40,400
videos while we're talking here.
You can see sort of how Rio

659
00:37:40,800 --> 00:37:43,360
envisioned the project.
It's their sort of mock up of

660
00:37:43,520 --> 00:37:47,680
what it's going to look like if
Slash when it gets developed.

661
00:37:47,960 --> 00:37:50,600
But essentially when we spoke
about this a couple months ago,

662
00:37:51,160 --> 00:37:53,240
things were looking to be back
on track.

663
00:37:53,240 --> 00:37:55,720
If you're if you're Rio Tinto
from their perspective, and

664
00:37:56,160 --> 00:37:58,800
we'll give a brief timeline,
about 20 years ago is when they

665
00:37:58,800 --> 00:38:01,560
discovered this thing.
Since then, it's been in study

666
00:38:01,560 --> 00:38:05,440
after study as the the the
broader lithium market has kind

667
00:38:05,440 --> 00:38:09,720
of matured.
They've spent €500 million on

668
00:38:09,720 --> 00:38:13,160
the project over various studies
to date.

669
00:38:14,080 --> 00:38:16,960
Get get lubricated, JD.
That's it mate.

670
00:38:16,960 --> 00:38:18,880
The the throat's still a bit
rusty after the years.

671
00:38:20,240 --> 00:38:25,640
So essentially in Jan 2022, the
Serbian government revoked the

672
00:38:25,640 --> 00:38:29,920
licences or some key licences.
And then what we saw in July or

673
00:38:29,960 --> 00:38:34,440
late June was that the court had
ruled that unconstitutional and

674
00:38:34,440 --> 00:38:36,640
essentially given back the
licences.

675
00:38:37,240 --> 00:38:40,120
Now over the weekend, there's
this massive protest.

676
00:38:40,120 --> 00:38:42,920
It was all all over Twitter, all
over the the various news

677
00:38:42,920 --> 00:38:47,080
stations out there, between 24
and 30,000 people, with the

678
00:38:47,080 --> 00:38:50,320
bearing reports of how many
people were in the streets of

679
00:38:50,320 --> 00:38:53,960
Belgrade, the capital of Serbia,
fighting against the development

680
00:38:53,960 --> 00:38:56,680
of this project.
So we've got in Times Square,

681
00:38:56,680 --> 00:38:57,960
that's.
Just amazing.

682
00:38:58,960 --> 00:39:01,680
Bloody unbelievable.
Yeah, it looked, it looked quite

683
00:39:01,680 --> 00:39:05,400
busy and to, to try and get a
feel for who's actually out

684
00:39:05,400 --> 00:39:07,280
there.
From reading into it, you know,

685
00:39:07,280 --> 00:39:11,320
you've got farmers from the, the
Yadda Valley and then you've got

686
00:39:11,320 --> 00:39:14,280
environmental groups, you've got
people from a sort of political

687
00:39:14,280 --> 00:39:17,360
band, people from, you know,
more just out and out

688
00:39:17,360 --> 00:39:20,760
environmental kind of left
leaning political groups there.

689
00:39:21,120 --> 00:39:25,120
But it seemed to be a pretty
broad range of people that are

690
00:39:25,240 --> 00:39:28,840
kind of anti Rio Tinto, anti
development, all with the, the

691
00:39:28,840 --> 00:39:32,400
crux being that they are scared
that the mining will pollute the

692
00:39:32,400 --> 00:39:35,720
land, it will pollute the
waterways that flows a couple of

693
00:39:35,720 --> 00:39:37,720
rivers there through the whole
of the country.

694
00:39:38,040 --> 00:39:41,600
That, that really seems to be
the, the core issue that all the

695
00:39:41,600 --> 00:39:46,040
people there have with the, with
the development and it's, you

696
00:39:46,040 --> 00:39:47,680
know, it's not completely like
unfounded.

697
00:39:47,680 --> 00:39:51,360
Serbia is a country with some of
the worst air pollution in all

698
00:39:51,360 --> 00:39:53,320
of Europe.
I just found that out doing a

699
00:39:53,320 --> 00:39:55,040
bit of digging.
That comes from industry they

700
00:39:55,040 --> 00:39:58,800
had from, you know, back in the,
the Yugoslav when, when it was

701
00:39:58,800 --> 00:40:03,040
all Yugoslavia throughout the
sort of 1950s to 1990s.

702
00:40:03,640 --> 00:40:06,960
And that is, you know, led to a
whole bunch of health problems

703
00:40:06,960 --> 00:40:09,320
with a lot of people there.
So it's very front and centre,

704
00:40:09,320 --> 00:40:11,600
this issue of pollution, bad air
quality.

705
00:40:11,960 --> 00:40:14,600
And they're kind of, you know, a
bit traumatised by that in a

706
00:40:14,600 --> 00:40:17,320
way, and they don't want to risk
anything, not to mention all the

707
00:40:17,320 --> 00:40:19,440
farmers, they don't want to ruin
their lifestyle.

708
00:40:19,440 --> 00:40:21,000
That's what they were kind of
want to pass on to their

709
00:40:21,000 --> 00:40:23,520
children and so on.
And there's this interesting

710
00:40:23,520 --> 00:40:26,280
sort of comment floating around
from various political groups.

711
00:40:26,280 --> 00:40:29,920
They're saying, essentially, why
should we develop lithium for

712
00:40:29,920 --> 00:40:31,920
electric vehicles that we can't
even afford?

713
00:40:32,240 --> 00:40:35,920
And that's sort of pushing back
firmly against the Western

714
00:40:35,920 --> 00:40:40,280
European countries like Germany,
France, England and Spain, who

715
00:40:40,280 --> 00:40:44,160
are very pro the development of
this project that's, you know,

716
00:40:44,200 --> 00:40:46,920
not in their backyard, but still
in the EU.

717
00:40:46,920 --> 00:40:51,480
So a bit of, you know, not in,
you know, Nimbyism is still very

718
00:40:51,480 --> 00:40:53,120
prevalent here.
They don't want the mining to go

719
00:40:53,120 --> 00:40:56,640
ahead.
But clearly the EU is still

720
00:40:56,640 --> 00:41:00,600
trying to push on with its goals
of getting the project online.

721
00:41:01,000 --> 00:41:04,000
There right, God fragging.
Good luck being a copper there

722
00:41:04,000 --> 00:41:06,600
with 30,000 angry Serbians
coming at you.

723
00:41:06,880 --> 00:41:09,080
Jesus Christ.
Mate.

724
00:41:09,520 --> 00:41:12,600
It is scary a lot of.
Shivering just thinking about

725
00:41:12,600 --> 00:41:14,840
it.
Yeah, and it's it kind of flies

726
00:41:14,840 --> 00:41:17,520
into the face of what's unfolded
over the past couple of months.

727
00:41:17,520 --> 00:41:19,840
So like I said, the EU wants
this to go ahead.

728
00:41:20,160 --> 00:41:22,760
You've seen Mercedes Benz,
you've seen Stelantis, they've

729
00:41:22,760 --> 00:41:25,960
signed deals to get, you know,
early stage off take kind of

730
00:41:26,080 --> 00:41:27,960
agreements to to get the
lithium.

731
00:41:28,400 --> 00:41:31,040
And we've spoken a bunch about
the the E US Critical Raw

732
00:41:31,040 --> 00:41:35,080
Materials Act.
This project alone would provide

733
00:41:35,080 --> 00:41:38,360
90% of the lithium needed for
that, you know, if they can

734
00:41:38,360 --> 00:41:43,040
build the downstream battery
facilities in time in the EU as

735
00:41:43,040 --> 00:41:45,480
well.
But that that whole goal is

736
00:41:45,480 --> 00:41:47,720
looking very shaky because
there's not a whole lot of other

737
00:41:48,360 --> 00:41:53,080
off scale mining projects out
there that could fill in the the

738
00:41:53,080 --> 00:41:56,920
supposed 90% slot that this
project would would come up

739
00:41:56,920 --> 00:42:00,200
with.
So how's Serbia as far as the

740
00:42:00,200 --> 00:42:02,560
government?
How have they if if they have

741
00:42:02,560 --> 00:42:07,520
responded to to these protests?
It, I mean it, it's really

742
00:42:07,520 --> 00:42:09,600
interesting.
You've got this guy, Alexander

743
00:42:09,600 --> 00:42:12,840
Vukich, he's been there since
2017 from memory.

744
00:42:12,840 --> 00:42:15,400
So he was there when the project
was pulled.

745
00:42:15,400 --> 00:42:18,280
He was there and sort of
championing it when they gave

746
00:42:18,280 --> 00:42:21,280
the licence back.
And he's actually called a

747
00:42:21,280 --> 00:42:25,800
crisis meeting and said this is
all a kind of ruse to overthrow

748
00:42:25,800 --> 00:42:28,280
me via a coup.
So he's saying this isn't

749
00:42:28,280 --> 00:42:31,920
actually to do with yada.
This is the people uprising

750
00:42:31,920 --> 00:42:35,680
under the guise of another sort
of cause and they want to

751
00:42:35,680 --> 00:42:37,640
overthrow him.
So I, I don't know how much to,

752
00:42:37,680 --> 00:42:39,720
to kind of read into that.
Into you.

753
00:42:39,720 --> 00:42:42,360
It's me, yeah.
It's.

754
00:42:43,120 --> 00:42:45,520
It seems a bit far fetched from
the outside, but what I don't

755
00:42:45,520 --> 00:42:48,720
haven't even been to to Serbia,
but I think the real consequence

756
00:42:48,720 --> 00:42:53,000
is with Rio Tinto.
We know with without a, a social

757
00:42:53,000 --> 00:42:56,480
licence, you just can't operate
and Rio Tinto more than any

758
00:42:56,480 --> 00:43:00,320
company on earth knows that one.
In the mining space, the the

759
00:43:00,320 --> 00:43:03,120
Serb energy minister said it's
going to take at least two years

760
00:43:03,800 --> 00:43:06,400
to get the permits to start
construction, but that all

761
00:43:06,400 --> 00:43:10,120
hinges on an environmental
impact study.

762
00:43:11,160 --> 00:43:14,720
The AAP, AP, existing JD, what's
the what's the metrics on it?

763
00:43:14,720 --> 00:43:19,560
She's going to be a big hum
digger. 58,000 tonnes of lithium

764
00:43:19,560 --> 00:43:21,840
carbonate equivalent.
Yeah, right.

765
00:43:21,840 --> 00:43:27,600
So that's what times that by
858, so like bit under half a

766
00:43:27,600 --> 00:43:31,440
million tonne of spot
equivalent, so exactly.

767
00:43:31,440 --> 00:43:33,440
Similar.
Exactly, people are long town so

768
00:43:33,480 --> 00:43:37,080
it's a pretty decent size.
Mate, it's, yeah, it's it's

769
00:43:37,080 --> 00:43:39,960
chunky.
And I mean, I'm thinking about

770
00:43:39,960 --> 00:43:41,640
Rio Tinto.
I'm thinking about what we've

771
00:43:41,640 --> 00:43:46,800
spoken about in the last week or
two, Jabiluka, their kind of

772
00:43:46,800 --> 00:43:51,320
stance on that once you guys
need to need to find another.

773
00:43:51,720 --> 00:43:53,080
Water.
Oh God, this happened to me at

774
00:43:54,120 --> 00:43:58,800
the bloody the mining club.
Oh no MC thing.

775
00:43:59,080 --> 00:44:01,400
I was up there talking and I
started getting a tickle in the

776
00:44:01,400 --> 00:44:04,000
throat and someone, someone was
actually telling it.

777
00:44:04,040 --> 00:44:07,240
Like a very.
Important story.

778
00:44:07,240 --> 00:44:13,880
A very personal story and I'm
like I'm so sorry mate I've got

779
00:44:13,880 --> 00:44:15,680
a lot.
Then lucky they got me a bloody

780
00:44:15,680 --> 00:44:18,680
water and fixed me up.
Oh bloody.

781
00:44:18,800 --> 00:44:22,840
The timing is just like then I
started sweating and then once

782
00:44:22,840 --> 00:44:25,720
you start sweating you start
sweating more because you're

783
00:44:25,720 --> 00:44:27,400
thinking about sweating,
sweating.

784
00:44:27,480 --> 00:44:31,480
Oh, once I got myself back on
track, got it again this bloody

785
00:44:32,000 --> 00:44:34,880
this Wednesday actually I'm up
for another round.

786
00:44:34,880 --> 00:44:38,000
Very good bloody.
So I'm taking up a pint of water

787
00:44:38,000 --> 00:44:38,520
with me.
This.

788
00:44:38,520 --> 00:44:40,960
Time, Yeah, Take up a pint.
That's my fair, so I'll get a

789
00:44:40,960 --> 00:44:45,040
dingo all.
Right, so you've got it into

790
00:44:45,040 --> 00:44:46,760
contour now.
I've got you.

791
00:44:47,640 --> 00:44:49,040
I'm fit and fighting.
Back on my feet.

792
00:44:49,040 --> 00:44:51,880
Go, brother.
So you, you got Rio Tinto,

793
00:44:51,880 --> 00:44:55,200
Jabiluka, obviously what we
spoke, spoken about, they're

794
00:44:55,200 --> 00:44:58,360
obviously going to continue to
try and change the sentiment in

795
00:44:58,440 --> 00:45:01,680
Serbia in the background.
But if you're in the boardroom

796
00:45:01,680 --> 00:45:06,120
now at Rio Tinto, you're having
a serious conversation asking

797
00:45:06,360 --> 00:45:10,040
are we serious about lithium?
They're kind of said they are

798
00:45:10,040 --> 00:45:12,760
for a while.
And the follow on, if you say

799
00:45:12,760 --> 00:45:15,160
yes to that is what are we going
to buy?

800
00:45:15,840 --> 00:45:19,480
Is that a project?
Is that a company that I mean,

801
00:45:19,520 --> 00:45:21,160
that's where you're kind of left
at, right?

802
00:45:21,160 --> 00:45:23,680
Because this, this is going to
take forever.

803
00:45:23,680 --> 00:45:25,040
It's it's kind of been in the
background.

804
00:45:25,040 --> 00:45:27,480
I mean, I'm sure they've known
this for a while.

805
00:45:27,480 --> 00:45:32,920
We saw the protests in Jan 22.
But I think that's where they

806
00:45:32,920 --> 00:45:35,520
kind of left it and maybe we say
something.

807
00:45:35,840 --> 00:45:38,240
You know, but you look at like
you look at how much they

808
00:45:38,240 --> 00:45:43,080
fucking make out of iron ore and
copper, like like how big scale

809
00:45:43,080 --> 00:45:46,120
it is, their iron ore, their
copper and you know everything

810
00:45:46,120 --> 00:45:48,520
else.
But you see the the effort they

811
00:45:48,520 --> 00:45:53,120
would have to go to for this
just to get it's not like it's

812
00:45:53,200 --> 00:45:55,280
the biggest friggin lithium mine
in the world.

813
00:45:55,280 --> 00:45:57,880
Like it's sounds like it's a bit
smaller than line town.

814
00:45:58,160 --> 00:45:59,840
So it's like.
Still chunky It's.

815
00:45:59,840 --> 00:46:03,040
It's chunky, but it's not like
if they're going to really have

816
00:46:03,040 --> 00:46:05,320
a swing at lithium, it probably
goes back to what you're saying

817
00:46:05,320 --> 00:46:07,880
the other week, JD, they'd just
fucking buy Pilbara, wouldn't

818
00:46:07,880 --> 00:46:09,080
they?
Like.

819
00:46:09,080 --> 00:46:11,920
Yeah, I mean.
Then it's got proper proper

820
00:46:11,920 --> 00:46:15,240
scale.
Kind of got to weigh out the

821
00:46:15,240 --> 00:46:18,320
differences between the, the
amount you'd have to buy the

822
00:46:18,320 --> 00:46:19,680
thing out for.
I mean, this, this thing's got a

823
00:46:19,680 --> 00:46:22,160
40 year mine life as it stands
at the moment.

824
00:46:22,160 --> 00:46:25,880
So it's, it's not small.
But yeah, I guess we'll kind of

825
00:46:26,360 --> 00:46:28,080
we'll kind of say I'm sure
there'll be some stern

826
00:46:28,080 --> 00:46:30,880
conversations in the back.
You've also, I mean, the the

827
00:46:30,880 --> 00:46:33,120
other kind of takeaways right
are that this is long term

828
00:46:33,120 --> 00:46:35,920
bullish polythium on on the
margins at least it was down the

829
00:46:35,920 --> 00:46:40,320
track and our conversations in
the West about taking power from

830
00:46:40,320 --> 00:46:43,080
China, they just keep going.
This is, you know, they're

831
00:46:43,080 --> 00:46:45,560
actually doing stuff over there.
They're actually building things

832
00:46:45,880 --> 00:46:48,480
and we keep going back and forth
so.

833
00:46:48,840 --> 00:46:51,400
Look, I wouldn't want to, I
wouldn't want to put those guys

834
00:46:51,400 --> 00:46:54,560
in the bloody trenches after
seeing those videos.

835
00:46:54,560 --> 00:46:57,840
But I reckon there might be a
need for the CRE insurance team

836
00:46:58,240 --> 00:47:02,760
to get over to Serbia and sort
of give Rio some assistance

837
00:47:02,760 --> 00:47:04,800
here.
ISIP because like talk

838
00:47:05,400 --> 00:47:09,520
international mining,
international insurance in tough

839
00:47:10,120 --> 00:47:14,640
mining jurisdictions like that's
just another day in the office

840
00:47:14,640 --> 00:47:18,120
for CRE like they they love it.
Anything in Australia is just a

841
00:47:18,120 --> 00:47:20,080
bonus.
Like easy, they love

842
00:47:20,080 --> 00:47:22,360
international.
They absolutely.

843
00:47:22,560 --> 00:47:23,920
Africa.
Big in Africa?

844
00:47:23,920 --> 00:47:27,080
Do it in Perkina, they do it all
over West Africa.

845
00:47:27,080 --> 00:47:28,800
Said you'd be a walk in the
park, you'd think.

846
00:47:28,920 --> 00:47:31,800
And I think that it's probably
good for them as well because

847
00:47:31,800 --> 00:47:34,520
they could actually insure
themselves when they go over

848
00:47:34,520 --> 00:47:37,720
there in case they get stuck in
one of these bloody blockades in

849
00:47:37,720 --> 00:47:40,400
the middle of the city.
So there's there's insurance

850
00:47:40,400 --> 00:47:42,480
going everywhere.
So that'd.

851
00:47:42,480 --> 00:47:44,920
Be everyone gets they'd.
Be protected themselves, they'll

852
00:47:44,920 --> 00:47:48,320
go and protect the mining right
and we are going to have it

853
00:47:48,600 --> 00:47:52,520
sucked down a couple of points
with not true Harvey, the CRE

854
00:47:52,520 --> 00:47:55,520
insurance team, the savvy.
So looking looking forward to to

855
00:47:55,520 --> 00:47:58,000
them.
I do send us a message if you

856
00:47:58,600 --> 00:48:01,280
were lucky enough to have a
point with Druber at Diggers,

857
00:48:01,800 --> 00:48:05,040
but he we'll draw up some T
shirts.

858
00:48:05,720 --> 00:48:09,880
Sure, I'm sure that he wanted 2.
Messages chase money more if you

859
00:48:09,880 --> 00:48:12,840
had a point with Druber.
I love it right JD?

860
00:48:12,840 --> 00:48:15,240
Finish it off mate, before your
bloody throat caves in.

861
00:48:15,800 --> 00:48:18,040
That's it Galan.
I was getting a few WhatsApp

862
00:48:18,040 --> 00:48:20,400
messages about this.
Oh what's the talk about Galan

863
00:48:20,400 --> 00:48:22,120
diggers?
I'm like oh shit, sorry I

864
00:48:22,120 --> 00:48:23,600
haven't talked about mining all
day.

865
00:48:23,640 --> 00:48:25,840
But anyway.
I'll give it, I'll give it one

866
00:48:25,840 --> 00:48:29,160
last hurrah.
So the deal is not going ahead

867
00:48:29,240 --> 00:48:32,920
at Galan.
So this this fuss came up late

868
00:48:32,920 --> 00:48:35,040
Monday while the stock was still
trading.

869
00:48:35,040 --> 00:48:39,000
If you guys remember, it was,
you know, quickly put into a

870
00:48:39,000 --> 00:48:43,040
pause after the stock had jumped
kind of 15% and then the day

871
00:48:43,040 --> 00:48:45,560
kind of closed.
More information surfaced before

872
00:48:45,920 --> 00:48:47,320
stocks started trading the next
day.

873
00:48:47,320 --> 00:48:51,000
But the, the headline we saw
from straight talk was US $150

874
00:48:51,000 --> 00:48:54,960
million takeover, which you
know, sounds sounds pretty juicy

875
00:48:54,960 --> 00:48:57,520
before you start scratching
beneath the surface because they

876
00:48:57,520 --> 00:49:00,320
were kept at 64,000,000 Aussie
at the time.

877
00:49:00,840 --> 00:49:03,800
Now the, the reported bid came
from a group called Energy X.

878
00:49:03,800 --> 00:49:06,440
They're not listed.
They're a a start up.

879
00:49:07,400 --> 00:49:09,560
They are, they're an American
company, although there's kind

880
00:49:09,560 --> 00:49:12,880
of varying reports out there.
One headline said they are

881
00:49:13,600 --> 00:49:18,120
headquartered in Austin, TX,
Another one said in San Juan,

882
00:49:18,240 --> 00:49:20,920
PR.
So you know, you can, you can

883
00:49:20,920 --> 00:49:24,080
dig into this company and, and
watch a few videos on YouTube.

884
00:49:24,800 --> 00:49:29,160
They are trying to get their DLA
technology advanced and they

885
00:49:29,160 --> 00:49:32,560
thought that Galan's project
would be the ideal sort of

886
00:49:32,560 --> 00:49:34,360
vehicle to kind of do it
through.

887
00:49:34,360 --> 00:49:38,080
But digging into the detail, you
can see the the supposed

888
00:49:38,080 --> 00:49:41,720
takeover in quotation marks
isn't exactly what it seemed at

889
00:49:41,720 --> 00:49:45,400
first.
The ASICS queried Glenn and you

890
00:49:45,400 --> 00:49:48,440
know, overtime Glenn came out
with a bit more information, but

891
00:49:48,440 --> 00:49:51,120
this was essentially an
unsolicited conditional non

892
00:49:51,120 --> 00:49:54,760
binding indicative proposal.
It actually came about around a

893
00:49:54,760 --> 00:49:57,880
month ago on the 12th of July is
when the company started talking

894
00:49:58,160 --> 00:50:03,280
before St Talk broke the news.
But this was not AUS $150

895
00:50:03,280 --> 00:50:07,200
million takeover by any means.
What Galan came out and said was

896
00:50:07,200 --> 00:50:10,680
that there was US 50 million in
cash, 50 million in Energy X

897
00:50:10,680 --> 00:50:13,400
stock, plus 50 million in
project financing.

898
00:50:13,880 --> 00:50:17,360
That's all very kind of airy
fairy because they're a private

899
00:50:17,360 --> 00:50:18,640
company.
They were going to value their

900
00:50:18,640 --> 00:50:22,240
own stock, that 50 million.
It'd be like us trying to do a

901
00:50:22,240 --> 00:50:24,360
bit of a takeover using money
and mine paper.

902
00:50:24,360 --> 00:50:27,240
Of course we give it a quite a
generous valuation, I think, and

903
00:50:27,240 --> 00:50:28,480
of course I could.
Probably basically.

904
00:50:30,120 --> 00:50:32,840
They'd probably be an
independent valuer in between

905
00:50:32,840 --> 00:50:34,520
there as well.
But you know, those things can

906
00:50:34,520 --> 00:50:36,640
get a bit blurry.
And not to mention the other 50

907
00:50:36,640 --> 00:50:39,480
million was for project finance.
Now that was going to go to the

908
00:50:39,480 --> 00:50:41,840
project that Energy X we're
going to own.

909
00:50:42,120 --> 00:50:44,960
So of course, Galan isn't
getting that cash at all.

910
00:50:44,960 --> 00:50:49,160
And then there was talk of a 10%
royalty as well.

911
00:50:49,160 --> 00:50:52,640
But essentially here we are a
week later and Galan has come

912
00:50:52,640 --> 00:50:55,000
out and said there is no chance
of this turning into a solid

913
00:50:55,000 --> 00:50:57,040
deal.
You know, we're just going to

914
00:50:57,040 --> 00:50:59,600
move on from here and keep
developing and yadda, yadda,

915
00:50:59,600 --> 00:51:01,600
yadda.
It reflects well on the project

916
00:51:01,600 --> 00:51:04,320
and all these sorts of things.
But you know, it was a

917
00:51:04,960 --> 00:51:08,280
interesting week for the stock.
It jumped up from circa 12 cents

918
00:51:08,280 --> 00:51:10,960
up to 17 and then now it's back
down in 12.

919
00:51:10,960 --> 00:51:14,160
There's a bit of a a spike in
volume as you'd expect in

920
00:51:14,160 --> 00:51:16,920
between.
But here we are.

921
00:51:16,920 --> 00:51:20,320
I think, you know, the lithium
market is still kind of in the

922
00:51:20,320 --> 00:51:23,080
doldrums and these guys are just
going to have to keep chipping

923
00:51:23,080 --> 00:51:24,480
away at trying to develop this
thing.

924
00:51:25,040 --> 00:51:27,680
Oh, JD, mate, you have done
sensationally because I know

925
00:51:27,720 --> 00:51:29,840
you.
I know though, isn't that the

926
00:51:29,840 --> 00:51:31,200
worst thing?
I'm just going to finish this

927
00:51:31,200 --> 00:51:33,400
sentence because and I'll just
the tickle.

928
00:51:33,600 --> 00:51:36,200
The tickle is right there.
It's just won't go away.

929
00:51:36,240 --> 00:51:38,640
Mate, Do you want to scrap the
last one because since you're

930
00:51:38,640 --> 00:51:40,920
struggling or you want me to
read through it for you?

931
00:51:41,920 --> 00:51:43,360
Go for it mate, go.
For it mate.

932
00:51:43,360 --> 00:51:47,640
I'll tell you what nothing more
than I'll dive into each day

933
00:51:47,640 --> 00:51:51,440
more than beach energy fucking
beach energy first thing I look

934
00:51:51,440 --> 00:51:53,800
at all the time.
Love me beach mate.

935
00:51:53,800 --> 00:51:58,040
Having a bit of a shocker ajd
down 12% like coming out with

936
00:51:58,040 --> 00:52:01,080
their full year results today.
I guess look, the stand out

937
00:52:01,080 --> 00:52:06,240
point to me was, you know, 2P
reserves fell by 20 percent,

938
00:52:06,240 --> 00:52:07,960
20%.
So that's pretty big.

939
00:52:07,960 --> 00:52:10,600
That's 1/2 years of potential
production losses from the

940
00:52:10,600 --> 00:52:13,120
revision.
So it's a bit of a kick in the

941
00:52:13,120 --> 00:52:17,080
guts look, which I think, look,
when I wasn't looking at beach

942
00:52:17,080 --> 00:52:20,880
and you were JD, we spoke about
when the new strategy came out a

943
00:52:20,880 --> 00:52:24,040
couple of months ago there,
there was a bit of a expectation

944
00:52:24,040 --> 00:52:27,600
that the new management had
cleaned the closet, you'd say.

945
00:52:27,600 --> 00:52:31,040
And look, add, add everything
negative that needed to be

946
00:52:31,040 --> 00:52:34,560
aired, leaving them to, you
know, get on with the job, get

947
00:52:34,560 --> 00:52:38,520
on with the beach story.
So look, this point is far out,

948
00:52:38,520 --> 00:52:41,440
Sean.
Anything else the company had to

949
00:52:41,440 --> 00:52:43,960
say?
Maddie, what was what was kind

950
00:52:43,960 --> 00:52:47,520
of behind the the reserve down.
There oh look I bloody look I

951
00:52:47,520 --> 00:52:51,120
Dave right into it look they've
they've hooked up the enterprise

952
00:52:51,120 --> 00:52:54,760
enterprise field in the Otway
and look that that's the one

953
00:52:54,760 --> 00:52:57,360
that just sits north of Port
Campbell on the Victorian

954
00:52:57,360 --> 00:52:58,280
coastline.
So I.

955
00:52:58,560 --> 00:53:01,640
I think you'll find it's just to
the South in in the in the water

956
00:53:01,640 --> 00:53:03,840
there.
South, I was just testing ya but

957
00:53:04,120 --> 00:53:05,680
yeah, bloody.
Yeah, you're all over it, man.

958
00:53:05,680 --> 00:53:08,560
Just sits South of Yeah, 'cause
it can't sit north of Victoria

959
00:53:08,880 --> 00:53:10,480
coastline.
Yeah, look.

960
00:53:10,480 --> 00:53:13,680
Oh, it's just that friggin
clustered how much time I put

961
00:53:13,680 --> 00:53:16,160
into this.
And look, they, they've said

962
00:53:16,160 --> 00:53:19,520
they've observed a bit of a
pressure decline JC over the

963
00:53:19,520 --> 00:53:21,760
past few weeks.
And look, that's look, that's

964
00:53:21,760 --> 00:53:25,120
consistent with the reservoir
being smaller than I guess

965
00:53:25,120 --> 00:53:29,440
originally estimated.
So look, two pay reserves

966
00:53:29,440 --> 00:53:34,960
dropped from 50 M MB OE.
Yeah, barrel equivalent.

967
00:53:34,960 --> 00:53:36,600
Oil barrel equivalents?
Yep.

968
00:53:36,640 --> 00:53:40,920
Yep to 2:05.
Yeah.

969
00:53:40,920 --> 00:53:43,440
And a, and a good bit of that
came from the the enterprise

970
00:53:43,440 --> 00:53:46,400
downgrade, not to mention, you
know, yet the the production

971
00:53:46,400 --> 00:53:52,240
that they spat out over FY24.
But here they are that 12%

972
00:53:52,440 --> 00:53:55,840
chalking off is over $300
million in in market cap.

973
00:53:55,840 --> 00:53:58,360
So they've got their work,
they've got their work cut out

974
00:53:58,360 --> 00:54:00,760
for them.
And I think it's just, you know,

975
00:54:00,760 --> 00:54:05,480
kind of perennial disappointment
for Beach shareholders.

976
00:54:05,480 --> 00:54:08,520
It's been a disappointing stock
to hold for quite a while.

977
00:54:09,640 --> 00:54:11,960
Geez, you know who's not
perennially disappointed?

978
00:54:12,120 --> 00:54:14,560
The customers of Axis Mining
Technology.

979
00:54:14,800 --> 00:54:16,840
Great Segway.
They're always happy.

980
00:54:17,520 --> 00:54:19,040
Go Access.
I thought you're gonna say

981
00:54:19,040 --> 00:54:24,480
seeing barrage there from go
access go the rest of the bloody

982
00:54:24,480 --> 00:54:29,640
partners MMS the go the go to
mining contractor, verify Smeg

983
00:54:29,640 --> 00:54:33,760
power and technology, DSI
underground Silverstone CRE

984
00:54:33,760 --> 00:54:38,360
insurance, Greenlands equipment,
K drill and you saw a couple of

985
00:54:38,360 --> 00:54:40,640
spark charts in there.
Bloody great, thanks for

986
00:54:40,640 --> 00:54:43,640
carrying me through team.
Ohh mate, I'll interject on

987
00:54:43,640 --> 00:54:47,160
beach anytime you want.
Jada Hodoro, Honest.

988
00:54:47,360 --> 00:54:49,760
Hodoro.
Information contained in this

989
00:54:49,760 --> 00:54:52,520
episode of Money of Mine is of
general nature only and does not

990
00:54:52,520 --> 00:54:55,160
take into account the
objectives, financial situation

991
00:54:55,200 --> 00:54:57,200
or needs of any particular
person.

992
00:54:57,520 --> 00:55:00,560
Before making any investment
decision, you should consult

993
00:55:00,560 --> 00:55:03,640
with your financial advisor and
consider how appropriate the

994
00:55:03,640 --> 00:55:07,320
advice is to your objectives,
financial situation and needs.