Peninsula Energy: An opportunity or a money pit?

1
00:00:00,080 --> 00:00:05,240
Righto buddy borders.
Another day, another bloody shit

2
00:00:05,240 --> 00:00:07,320
load of stories that we're about
to RIP out.

3
00:00:07,320 --> 00:00:09,680
I'm pretty sure every one of
these could use access mining

4
00:00:09,680 --> 00:00:11,440
technology.
I don't think there's any mining

5
00:00:11,440 --> 00:00:14,320
company that doesn't need them.
The trusted advisor.

6
00:00:14,760 --> 00:00:17,240
Mining, development,
exploration, everything.

7
00:00:17,440 --> 00:00:19,280
OK, we do some, but you look
fresh.

8
00:00:19,280 --> 00:00:23,680
Mate of cute.
Oh, I I was gonna sort of keep

9
00:00:23,680 --> 00:00:26,360
the mullet, but then I'm like,
I'll just take a bit more off.

10
00:00:26,360 --> 00:00:29,280
I'll probably go on a bit deep.
Debuting the back of your neck

11
00:00:29,280 --> 00:00:32,280
today it.
Makes you look skinnier I would

12
00:00:32,280 --> 00:00:34,240
just say.
Mate, the bloody oh mate, the

13
00:00:34,240 --> 00:00:36,080
women pulling me up in the
street.

14
00:00:36,080 --> 00:00:41,920
Is it just being unbelievable?
God, it's just 100% increase

15
00:00:41,920 --> 00:00:43,400
that's not.
The only thing you got a new

16
00:00:43,400 --> 00:00:45,440
haircut and I stick on your.
How good's Miles?

17
00:00:45,440 --> 00:00:48,720
He's given us some stickers for
me, Mike, How good's that mate?

18
00:00:48,880 --> 00:00:53,600
Miles I was wanting to meet
Milesy and CC 16 at Diggers, but

19
00:00:53,600 --> 00:00:57,360
on the last night having a kebab
at 3:00 in the morning, he rocks

20
00:00:57,360 --> 00:01:00,560
up a miles contracting you and
I'm like Milesy, he's coming in

21
00:01:00,560 --> 00:01:03,440
to get a pizza after night shift
and give me a lift time

22
00:01:03,440 --> 00:01:05,239
afterwards.
You both finished night shift.

23
00:01:06,640 --> 00:01:09,120
Eh, what a bloody day, right?
What have we got today?

24
00:01:09,160 --> 00:01:12,320
We've got JD.
I'm so fucking proud of you.

25
00:01:12,320 --> 00:01:13,640
I thought I thought you might be
mad.

26
00:01:13,640 --> 00:01:17,640
Going balls deep in situ
recovery over in Wyoming.

27
00:01:17,640 --> 00:01:19,560
Mate, you might need to hold my
hand through it, but I'm excited

28
00:01:19,560 --> 00:01:22,040
to talk about uranium.
And then we've got another Rogue

29
00:01:22,040 --> 00:01:23,440
One, which I'm keen to hear
about.

30
00:01:23,480 --> 00:01:25,800
Medals, tech.
It's been a freaking fascinating

31
00:01:25,800 --> 00:01:28,440
story in the background.
I think we spoke about it maybe

32
00:01:28,440 --> 00:01:31,160
half a year ago or so, right?
Yeah, mate, there's a it's

33
00:01:31,160 --> 00:01:36,000
colourful, colourful.
It's come to a bit of a head

34
00:01:36,000 --> 00:01:37,960
with sort of yesterday and
stuff, some some really

35
00:01:37,960 --> 00:01:40,840
interesting stuff and Ally
Dodies.

36
00:01:41,600 --> 00:01:43,840
Of course, merchants and
correspondent.

37
00:01:43,840 --> 00:01:47,000
When we need merchants and
stuff, we bring in allergy say.

38
00:01:47,400 --> 00:01:50,880
No makers got their big funding
package to develop their

39
00:01:50,880 --> 00:01:53,800
merchants and projects, so we
touched on that a little.

40
00:01:54,000 --> 00:01:56,320
Bit oversubscribed too bloody
well.

41
00:01:56,480 --> 00:01:57,600
I think you're allowed to say
those.

42
00:01:57,600 --> 00:01:59,040
Are you allowed to say
oversubscribed?

43
00:01:59,200 --> 00:02:02,400
I I remember.
Our former body, yeah, they

44
00:02:02,560 --> 00:02:05,880
don't like using the word
oversubscribed, so we used to

45
00:02:05,880 --> 00:02:08,880
swap it with, you know, well
supported, strongly supported

46
00:02:09,560 --> 00:02:12,520
basically means the same.
I've gone into oh, the the goal

47
00:02:12,720 --> 00:02:15,840
because the resource Rising
Stars is on at the moment.

48
00:02:15,840 --> 00:02:18,960
So all the prezzo's are coming
out and I was just scrolling

49
00:02:18,960 --> 00:02:22,760
through develops and because I'm
always bloody interested in them

50
00:02:22,760 --> 00:02:24,800
because he probably gave me my
first job.

51
00:02:25,200 --> 00:02:30,160
But yeah, I've gone into an
unnecessary Excel spreadsheet

52
00:02:30,480 --> 00:02:32,120
session.
Yeah, I saw you're giving Excel

53
00:02:32,160 --> 00:02:34,360
a good run for. 20 mate.
I don't know where I've ended

54
00:02:34,360 --> 00:02:38,200
up, but it's cool, right JD?
Take it away with the bloody

55
00:02:38,200 --> 00:02:40,600
yellow cake, sunshine.
All right, like you said,

56
00:02:40,600 --> 00:02:44,760
Maddie, we're going, we're going
to Wyoming ISR project in the

57
00:02:45,040 --> 00:02:47,440
the US of A.
So if you want to frame this one

58
00:02:47,440 --> 00:02:50,360
kind of positively, you could
say they might be the next

59
00:02:50,360 --> 00:02:53,200
uranium producer on the ASX.
If you want to frame it in a bit

60
00:02:53,200 --> 00:02:55,760
of a different light, you could
say they're the the second worst

61
00:02:55,760 --> 00:03:00,320
performing a uranium ASX stock
over the past couple years or

62
00:03:00,320 --> 00:03:02,160
so.
Era obviously taken the cake

63
00:03:02,480 --> 00:03:03,240
there.
So.

64
00:03:03,320 --> 00:03:05,080
Have we said the company yet?
Peninsula.

65
00:03:05,480 --> 00:03:06,640
Peninsula.
Yeah, yeah, I.

66
00:03:06,800 --> 00:03:07,360
Don't know.
Now we have.

67
00:03:07,720 --> 00:03:09,480
Now we have.
Peninsula we're talking about.

68
00:03:09,680 --> 00:03:11,840
So these guys are in the
construction phase right now

69
00:03:11,840 --> 00:03:14,640
looking to start commissioning
at the end of this calendar

70
00:03:14,640 --> 00:03:16,920
year.
But you know, you get the, the

71
00:03:16,920 --> 00:03:20,200
first drums out by Q2 of next
calendar year.

72
00:03:20,200 --> 00:03:23,120
They've had a few hiccups and
we'll quickly run through what

73
00:03:23,120 --> 00:03:26,160
the the context around this one
is because we spoke about it

74
00:03:26,200 --> 00:03:32,000
over a year ago now.
They had UEC essentially, you

75
00:03:32,000 --> 00:03:33,640
know, they, they terminated a
contract.

76
00:03:34,080 --> 00:03:35,720
Peninsula drew the short straw
there.

77
00:03:35,720 --> 00:03:38,760
They were essentially sending a,
you know, intermediate kind of

78
00:03:38,760 --> 00:03:42,880
product which would be told
traded by UEC, which meant that

79
00:03:43,120 --> 00:03:47,000
Peninsula then had to build the
end of that processing facility

80
00:03:47,200 --> 00:03:51,240
themselves so they could produce
a dry yellow cake product that

81
00:03:51,360 --> 00:03:54,400
subsequently required a fair bit
of capital to be raised.

82
00:03:54,400 --> 00:03:56,920
Maddie, you're pretty
intricately familiar with the,

83
00:03:56,920 --> 00:03:58,800
the ISR process.
Why don't you give us a bit of a

84
00:03:58,800 --> 00:04:01,320
rundown quickly of how it
relates to them and where they

85
00:04:01,320 --> 00:04:03,800
were kind of, you know, having
to add on processing.

86
00:04:04,080 --> 00:04:07,520
Yeah, it's, it's actually quite,
you can draw so many parallels

87
00:04:07,520 --> 00:04:11,840
between these on exchange
columns and how it works to gold

88
00:04:11,880 --> 00:04:14,000
processing, believe it or not,
like the.

89
00:04:14,160 --> 00:04:18,959
So the essentially what they
were doing is selling a uranium

90
00:04:18,959 --> 00:04:21,279
concentrate.
You'd say it's like selling a

91
00:04:21,279 --> 00:04:25,640
gold concentrate without going
through the final process.

92
00:04:25,640 --> 00:04:29,640
So like with these ISR projects,
you have this, they call it the

93
00:04:29,640 --> 00:04:32,280
PLS, the pregnant liquid
solution, the acid that goes

94
00:04:32,280 --> 00:04:35,640
through the paleo channel then
goes into these ion exchange

95
00:04:35,640 --> 00:04:39,360
things, the lixivient.
And then those ion exchanges

96
00:04:39,360 --> 00:04:43,280
have the when they talk about
the resin, the resin is like,

97
00:04:43,280 --> 00:04:46,680
you got the like the pregnant
liquid solution going one way

98
00:04:47,040 --> 00:04:51,600
and the resin going the
otherwise exactly the same as a

99
00:04:51,600 --> 00:04:57,480
gold processing plant with,
yeah, gold, gold going one way

100
00:04:57,480 --> 00:05:00,480
and the carbon, the gold in
cyanide going one way and the

101
00:05:00,480 --> 00:05:04,080
carbon going the other way.
So the resin is what takes the

102
00:05:04,080 --> 00:05:07,240
uranium out of the pregnant
liquid solution and attaches

103
00:05:07,240 --> 00:05:09,920
onto the resin.
So what these guys were doing

104
00:05:09,920 --> 00:05:16,760
was going through that process
and then getting that uranium

105
00:05:16,760 --> 00:05:20,880
enriched resin then processed at
another facility instead of

106
00:05:20,880 --> 00:05:24,320
like, you know, gold, they have
to go through the illusion

107
00:05:24,320 --> 00:05:27,120
Electro winning and then to
produce the door eye bar.

108
00:05:27,200 --> 00:05:31,560
So they are effectively, you
know, selling like selling

109
00:05:31,560 --> 00:05:35,400
loaded carbon effectively and
then someone else processing it.

110
00:05:35,400 --> 00:05:40,080
So yeah, that's yeah, you
obviously need the extra capital

111
00:05:40,080 --> 00:05:44,920
of like and, and to even go from
UO four.

112
00:05:44,920 --> 00:05:48,400
I think it is like what the the
actual bright yellow cake that

113
00:05:48,400 --> 00:05:52,760
you see is not U3O8U3O8 is
actually, I think it's like an

114
00:05:52,760 --> 00:05:55,960
olive colour.
So like there's an extra step to

115
00:05:55,960 --> 00:06:00,000
process that to actually get
U3O8, which is what the

116
00:06:00,120 --> 00:06:04,320
converters prefer 'cause they
want just U3O8 given to and then

117
00:06:04,320 --> 00:06:07,160
they converted into U F6.
They don't want to have to go

118
00:06:07,160 --> 00:06:11,080
from I think it's UOU O2 or U F4
or something.

119
00:06:11,960 --> 00:06:13,800
I'll be happily corrected by
anyone.

120
00:06:13,840 --> 00:06:15,760
Not a UFO.
You something like that.

121
00:06:15,800 --> 00:06:18,920
It's bloody, yeah.
So as you said, Joe, there's a

122
00:06:18,920 --> 00:06:21,800
lot of extra capital to go in to
get it to that stage.

123
00:06:21,880 --> 00:06:23,600
Exactly.
Now, so that they raised in June

124
00:06:23,600 --> 00:06:28,800
106 million and in January they
completed a $60 million SPP and

125
00:06:28,840 --> 00:06:31,160
placement.
The placement had been done a

126
00:06:31,240 --> 00:06:34,360
couple months prior to that, so
that kind of so 2.

127
00:06:34,400 --> 00:06:37,080
Raises since the the.
The exactly, Yeah.

128
00:06:37,080 --> 00:06:41,240
So that initially that rug pool
happened in July of last year

129
00:06:41,240 --> 00:06:44,000
and then they came and that with
the restart plan and everything.

130
00:06:44,000 --> 00:06:46,840
So today you're sitting with
about 11 rigs on site.

131
00:06:47,120 --> 00:06:49,080
These are the ones that are
chucking in like you sort of

132
00:06:49,080 --> 00:06:51,840
spoke to there, Maddie, the the
production and injection wells

133
00:06:52,080 --> 00:06:55,280
that I guess the first step in
the ISR process, they say that's

134
00:06:55,280 --> 00:06:59,360
76% drilled and encased at mine
unit 3.

135
00:06:59,360 --> 00:07:03,000
So you got a mine unit 1, mine
unit 2-3, and four being

136
00:07:03,000 --> 00:07:04,520
developed.
And they're as well.

137
00:07:04,520 --> 00:07:06,240
They're preconditioning at the
moment.

138
00:07:06,800 --> 00:07:09,800
Yeah, exactly.
So they're dropping the pH in

139
00:07:09,880 --> 00:07:13,280
one and two.
And in this quarter that we're

140
00:07:13,280 --> 00:07:16,240
now currently in, they'll be
doing the same at mine Unit 3.

141
00:07:16,240 --> 00:07:19,480
Yeah, so that and I'll think I
haven't looked too much into

142
00:07:19,480 --> 00:07:20,840
this.
I know this is what boss had to

143
00:07:20,840 --> 00:07:25,120
do because of the because of the
salt in the like salt is your

144
00:07:25,440 --> 00:07:30,640
enemy in in bloody uranium
processing salt having salt is

145
00:07:30,640 --> 00:07:34,400
like having copper with your
gold because they've got to

146
00:07:34,720 --> 00:07:37,680
they've got to flush acid water
through with that.

147
00:07:37,840 --> 00:07:41,120
Like before they put the
sulfuric acid into actually by

148
00:07:41,120 --> 00:07:44,120
the sands dissolve all the as
much of the salts or the

149
00:07:44,120 --> 00:07:47,240
carbonates they can to condition
the well.

150
00:07:47,240 --> 00:07:50,120
So that when the pregnant liquid
solutions coming out, if there's

151
00:07:50,120 --> 00:07:54,200
shit load of salt in it when it
the red, the salt attaches to

152
00:07:54,200 --> 00:07:59,960
the resin preferentially ahead
of the uranium.

153
00:08:00,200 --> 00:08:05,280
Same as how copper attaches to
carbon preferentially than gold

154
00:08:05,280 --> 00:08:09,000
with the cyanide solution when
it's cyanide soluble.

155
00:08:09,000 --> 00:08:13,480
So that's why getting rid of
they talk about the RO have an

156
00:08:13,520 --> 00:08:16,160
RO plants at these things and
like preconditioning to get as

157
00:08:16,160 --> 00:08:19,680
much salt out.
So salt water is is the enemy.

158
00:08:19,680 --> 00:08:23,480
And then when you take the when
you take the uranium off the

159
00:08:23,760 --> 00:08:26,840
resin, which is like the next
step after what they were going

160
00:08:26,840 --> 00:08:30,320
to do, you actually just add
salt to it and it takes the

161
00:08:30,320 --> 00:08:32,520
resin off the uranium.
Bloody all.

162
00:08:33,000 --> 00:08:36,039
Of it chemistry.
It is a freaking chemistry set.

163
00:08:36,039 --> 00:08:37,919
It's like you need Walter White
there.

164
00:08:37,919 --> 00:08:42,600
Bloody stop bloody cooking.
But if Walter White was a real

165
00:08:42,600 --> 00:08:47,360
person, he would be the man for
ISR because it is bloody and

166
00:08:47,360 --> 00:08:50,440
absolute chemistry set.
For now it mate and that

167
00:08:50,440 --> 00:08:52,920
preconditioning, that's a sort
of two to three month process,

168
00:08:52,920 --> 00:08:55,520
which is why they kind of have
to start it pretty soon to get

169
00:08:55,520 --> 00:08:57,920
it all humming by the end of
this calendar year.

170
00:08:58,080 --> 00:09:00,440
There's a sort of interesting
facet of ISR projects.

171
00:09:00,440 --> 00:09:02,760
You might notice that they're
not really, they don't tend to

172
00:09:02,760 --> 00:09:05,200
be debt financed.
You know, we noticed that with

173
00:09:05,240 --> 00:09:08,000
with boss, they were cashed up,
they had obviously uranium on

174
00:09:08,000 --> 00:09:10,440
hand as well.
And the same can be said for

175
00:09:10,440 --> 00:09:12,680
Peninsula right now.
And it's kind of twofold.

176
00:09:13,080 --> 00:09:15,480
You firstly need off take which
these guys have and we'll get

177
00:09:15,480 --> 00:09:18,360
into in more detail later on.
But then you also need a proven

178
00:09:18,360 --> 00:09:21,440
reserve and this is kind of done
through delineation drilling,

179
00:09:21,440 --> 00:09:23,440
which is more or less what
you're doing when you're

180
00:09:23,440 --> 00:09:25,200
building out the the well
fields.

181
00:09:25,200 --> 00:09:28,160
So it's a it's kind of timing
and costing at the end of the

182
00:09:28,160 --> 00:09:30,240
day.
You don't get to that point and

183
00:09:30,560 --> 00:09:32,480
essentially you're not giving
the commercial national banks

184
00:09:32,520 --> 00:09:35,440
the the confidence that they
need prior to doing it because

185
00:09:35,440 --> 00:09:37,800
you may as well do it all at the
at the same time.

186
00:09:38,280 --> 00:09:41,280
They did say though that they
now have a financial advisor on

187
00:09:41,280 --> 00:09:42,960
board to try and help them lock
up a bit of debt.

188
00:09:42,960 --> 00:09:46,000
So maybe you know, come the
first half of next year once

189
00:09:46,000 --> 00:09:49,560
they are actually producing a
little bit, they can get a bit

190
00:09:49,560 --> 00:09:52,080
of debt to sort of support
working capital and and these

191
00:09:52,080 --> 00:09:53,920
sorts of things.
Yeah, I'm not, I'm not sure how

192
00:09:54,720 --> 00:09:56,760
because I think it's a lot mud
Rotary in that.

193
00:09:56,760 --> 00:10:00,120
But like, yeah, we're interested
to know how expiration works

194
00:10:00,120 --> 00:10:02,080
with these things because it
sounds like there's no point

195
00:10:02,600 --> 00:10:06,240
drilling into it if you're not
going to use it as a well field.

196
00:10:06,240 --> 00:10:08,680
Like obviously the most
efficient way is to use it as a

197
00:10:10,000 --> 00:10:13,320
like a an injection well or an
extraction well to then

198
00:10:13,320 --> 00:10:17,640
delineate it.
But yeah, it's, yeah, it's

199
00:10:17,640 --> 00:10:21,640
interesting one first, Yeah,
yeah, your time, your time

200
00:10:21,640 --> 00:10:24,080
constrained because you you want
to delineate it, but then you

201
00:10:24,080 --> 00:10:26,480
want to get it established to
start producing.

202
00:10:26,480 --> 00:10:28,840
Yeah, yeah.
So to, to give a bit more sort

203
00:10:28,840 --> 00:10:32,280
of rounding on the the whole
project, they've got Ross,

204
00:10:32,280 --> 00:10:36,440
that's the area where the the
processing plant now sits.

205
00:10:36,440 --> 00:10:38,960
And then they've got a whole
bunch of land in a sort of long

206
00:10:39,120 --> 00:10:41,720
kind of rectangle around it.
So you've also got Kendrick

207
00:10:41,720 --> 00:10:46,760
which sort of plays into the the
mineral, the measured and

208
00:10:46,760 --> 00:10:49,840
indicated resource as well.
So that'll play in over that 10

209
00:10:49,840 --> 00:10:53,440
year mine life that they've got.
So they talk about £58,000,000

210
00:10:53,440 --> 00:10:56,680
in resource, but like the vast,
vast majority of this over £40

211
00:10:56,680 --> 00:11:00,760
million sits in inferred in the
the wider kind of area.

212
00:11:00,760 --> 00:11:04,080
So the actual amount that
they're going to pull out over

213
00:11:04,080 --> 00:11:09,160
the 10 years is a bit under
£15,000,000, so steady state

214
00:11:09,160 --> 00:11:12,560
£1.8 million, but it takes a
while to kind of get there.

215
00:11:12,560 --> 00:11:15,520
And in terms of grade, they're
talking high 4 hundreds or low 5

216
00:11:15,520 --> 00:11:18,520
hundreds PPM.
Now to give a bit of context

217
00:11:18,520 --> 00:11:24,800
again, boss is 620 at Honeymoon,
1100 PPM at their Altimessa

218
00:11:24,800 --> 00:11:28,880
project in in Texas and burden
off score is again a bit over

219
00:11:28,880 --> 00:11:33,360
1100 in in Kazakhstan.
I mean, and I think like, yeah,

220
00:11:33,360 --> 00:11:36,880
those and those Kazakhstan ones
are, you know, for what, boss?

221
00:11:36,880 --> 00:11:39,160
And that I think the channel's
like 3 metres thick.

222
00:11:39,160 --> 00:11:41,680
You go over to Kazakhstan, they
reckon they're like 6 to 8

223
00:11:41,680 --> 00:11:43,760
metres thick.
Like the channels are so much

224
00:11:43,840 --> 00:11:44,760
bigger.
Yeah.

225
00:11:45,680 --> 00:11:47,640
Then they're just far.
And I don't, I don't think

226
00:11:47,640 --> 00:11:50,960
because Adam probably have the
limits on I know the ones over

227
00:11:50,960 --> 00:11:54,520
here you have limits on how much
acid the right at which you

228
00:11:54,520 --> 00:11:58,520
inject it into the ground like
so it doesn't per like doesn't

229
00:11:58,680 --> 00:12:00,280
there's not.
Yeah, One, it's so much pressure

230
00:12:00,280 --> 00:12:02,160
aquifer.
Yeah, yeah, so.

231
00:12:02,240 --> 00:12:04,240
And it depends on where the
water table is, but I think

232
00:12:04,240 --> 00:12:07,200
'cause atom prom I think I can
just jam it in as quick as I can

233
00:12:07,520 --> 00:12:08,520
I think.
And that and.

234
00:12:08,560 --> 00:12:11,040
That makes sense, I'm exposing
myself to get corrected on a

235
00:12:11,040 --> 00:12:14,840
fuck load of shit tonight.
It's not my first metallurgy

236
00:12:14,840 --> 00:12:16,640
episode.
And that Nathan stored us on the

237
00:12:16,640 --> 00:12:20,040
phone straight away.
Yeah.

238
00:12:20,040 --> 00:12:22,600
I mean, you can see that
production from Ross dials off

239
00:12:22,600 --> 00:12:26,520
right after 2026 in 2027, yeah,
that's where the sort of initial

240
00:12:26,520 --> 00:12:28,960
grab comes from.
But then they got Kendrick,

241
00:12:28,960 --> 00:12:30,600
which is the next one.
So you can see there's not too

242
00:12:30,600 --> 00:12:32,520
many years of life into that
one.

243
00:12:32,600 --> 00:12:34,440
Yeah.
So to get into the the off take

244
00:12:34,440 --> 00:12:36,680
and more of the finance stuff
where I feel a bit more at home,

245
00:12:36,920 --> 00:12:39,920
you can see they've got six off
take contracts That covers

246
00:12:39,920 --> 00:12:43,120
roughly 40% of their planned
production over the next 10

247
00:12:43,120 --> 00:12:45,520
years.
So that totals £6 million of

248
00:12:45,520 --> 00:12:48,040
production.
Like I said, I think it's 14.8

249
00:12:48,040 --> 00:12:49,680
million.
That is the total in the mine

250
00:12:49,680 --> 00:12:52,080
plan currently.
It's roughly 40% that we're

251
00:12:52,080 --> 00:12:55,760
working with there and it's
based off a fixed base with

252
00:12:55,760 --> 00:12:58,600
escalation as well as market
linked pricing.

253
00:12:58,600 --> 00:13:00,880
So it's a bit ambiguous.
You don't totally know what

254
00:13:00,880 --> 00:13:03,360
they're going to get paid for
it, but you can dig in a bit.

255
00:13:03,360 --> 00:13:06,680
So they've got this 2023 restart
study and there's some

256
00:13:06,680 --> 00:13:10,080
interesting stuff in there.
So they assumed an average 67

257
00:13:10,240 --> 00:13:15,760
U.S. dollar per pound price.
Now that involves $73 assumption

258
00:13:15,760 --> 00:13:21,680
for the uncontracted material
and they used a $55 assumption

259
00:13:21,720 --> 00:13:25,280
on the contracted material.
Since that came out, they did

260
00:13:25,280 --> 00:13:28,960
sign up another £1.2 million in
off take, yeah.

261
00:13:29,320 --> 00:13:31,440
Interesting.
Today you have to shuffle some

262
00:13:31,440 --> 00:13:34,440
of their their contracts as well
when they so expected to be in

263
00:13:34,440 --> 00:13:36,640
production.
Yeah, so that they spoke about

264
00:13:36,640 --> 00:13:40,200
in this would have been late
July of last year, you know the

265
00:13:40,760 --> 00:13:44,600
off take parties being friendly.
They also did have uranium on

266
00:13:44,600 --> 00:13:47,400
hand at the time, which they no
longer have so to.

267
00:13:47,840 --> 00:13:49,080
Deliver SO.
Yeah, Yeah.

268
00:13:49,120 --> 00:13:51,840
I think, I think from what I've
heard like the off takes, it's

269
00:13:51,960 --> 00:13:57,480
like you don't owe it if you
it's based on what name like

270
00:13:57,560 --> 00:14:00,840
steady state and nameplate.
I don't, I've, I've heard some

271
00:14:00,840 --> 00:14:03,760
arrangements not like you have
to deliver that this year.

272
00:14:03,760 --> 00:14:06,760
Some of them are like you have
to deliver that once you hit

273
00:14:06,960 --> 00:14:10,080
steady state and commercial
production and and things like

274
00:14:10,080 --> 00:14:10,720
that.
So.

275
00:14:11,160 --> 00:14:13,640
Each contract does it's own.
Depends on and shake.

276
00:14:13,680 --> 00:14:15,560
Yeah, yeah.
So what what you can tell from

277
00:14:15,560 --> 00:14:18,440
that £1.2 million that was
signed up in March of this year

278
00:14:18,760 --> 00:14:22,960
is that the estimated a a
maximum revenue of US $117

279
00:14:22,960 --> 00:14:26,360
million, which in indicates a
maximum potential price in that

280
00:14:26,360 --> 00:14:30,040
contract of a bit under US $98 a
pound.

281
00:14:30,200 --> 00:14:31,200
Geez.
Also that would be.

282
00:14:31,240 --> 00:14:33,120
The that would be the maximum.
There was a link, there was a

283
00:14:33,120 --> 00:14:36,840
lower bound of you know $88
million in, in revenue off that

284
00:14:36,840 --> 00:14:38,160
one.
Oh, they won't be getting that

285
00:14:38,160 --> 00:14:39,960
now.
Yeah, it goes up.

286
00:14:40,280 --> 00:14:41,560
Yeah.
So there's a there's a sort of

287
00:14:41,560 --> 00:14:44,120
range within there that you kind
of work They.

288
00:14:44,480 --> 00:14:47,320
So like you kind of said Trev,
they they did have some

289
00:14:47,320 --> 00:14:50,040
commitments to meet.
So they've got an in process

290
00:14:50,040 --> 00:14:53,600
inventory which is a pretty
negligible, negligible amount.

291
00:14:53,600 --> 00:14:56,840
So it's safe to say that they
don't have any on hand right

292
00:14:56,840 --> 00:15:01,240
now, which plays into 2025 S in
2025 they've got to deliver

293
00:15:01,240 --> 00:15:07,400
about 470,000 lbs of you know,
contracted uranium and they've

294
00:15:07,400 --> 00:15:14,440
guided to 700,000 to 900,000 lbs
to be produced over that year.

295
00:15:15,440 --> 00:15:16,640
Now here's where it gets pretty
interesting.

296
00:15:16,680 --> 00:15:19,840
That was previously 1.1 million.
So they had of, you know, a

297
00:15:20,120 --> 00:15:23,720
pretty substantial drop down in
what the first year 2025

298
00:15:24,080 --> 00:15:26,480
production is going to be just a
couple weeks ago.

299
00:15:26,480 --> 00:15:28,200
And this was a classic, you
know, this was an 8 page

300
00:15:28,200 --> 00:15:31,400
document and it was in the last
page of the document where they

301
00:15:31,400 --> 00:15:34,880
said there's been an update to
what we're going to do next

302
00:15:34,880 --> 00:15:36,520
year.
And you know, they didn't put

303
00:15:36,520 --> 00:15:38,600
too much meat on the bone there,
but it's not good.

304
00:15:38,840 --> 00:15:42,440
That's that's potentially over
like a 40% drop in what the

305
00:15:42,440 --> 00:15:44,920
production is going to be for
the next year.

306
00:15:44,920 --> 00:15:48,440
And that leaves a heap of
questions because they just said

307
00:15:48,440 --> 00:15:51,240
that about 2025, but we don't
know if that's going to be, you

308
00:15:51,240 --> 00:15:53,760
know, have flow on effects for
2026.

309
00:15:53,880 --> 00:15:56,440
It's kind of like that and you
said about 40% of steady state

310
00:15:56,440 --> 00:15:59,560
production was contracted, but
if you have like 30% of your

311
00:15:59,560 --> 00:16:01,760
steady state kind of exactly,
exactly, it's a lot more

312
00:16:01,800 --> 00:16:03,520
contract.
So now all of a sudden, you

313
00:16:03,520 --> 00:16:06,200
know, on the, on that kind of
lower bound, it's well over 2/3

314
00:16:06,200 --> 00:16:09,280
of next year's production is
going to be contracted out that

315
00:16:09,280 --> 00:16:12,040
they, they kind of have to meet.
And interestingly they, they

316
00:16:12,040 --> 00:16:15,960
still said they anticipate to be
cash flow positive by Q3 of next

317
00:16:15,960 --> 00:16:17,480
year.
They've maintained that date

318
00:16:17,880 --> 00:16:20,080
for, you know, the best part of
the last year.

319
00:16:20,600 --> 00:16:22,600
I find it, you know, very
interesting that production

320
00:16:22,600 --> 00:16:26,120
could fall off so significantly
and you're still going to be

321
00:16:26,120 --> 00:16:29,120
cash flow positive at the exact
same point in time that, you

322
00:16:29,120 --> 00:16:32,480
know, that kind of leads me to
have a few more questions.

323
00:16:32,840 --> 00:16:34,920
And you know, a lot of it kind
of went unanswered.

324
00:16:34,920 --> 00:16:37,920
It's just one paragraph that
they Chuck in at the the end of

325
00:16:38,000 --> 00:16:41,640
a project update so.
After learning a bit more about

326
00:16:41,640 --> 00:16:46,640
ISR, it fucking sounds like the
the moving parts and the ramp up

327
00:16:46,640 --> 00:16:51,160
to get the between the the
Luxibian and the resin to make

328
00:16:51,160 --> 00:16:54,720
sure they're working together
because one changing one affects

329
00:16:54,720 --> 00:16:58,720
the other and the lithology of
the ground and, and everything.

330
00:16:58,720 --> 00:17:02,600
It is like fuck, it sounds hard.
It sounds bloody hard.

331
00:17:02,800 --> 00:17:06,480
Like just a big chemistry set
and the hydrogeology of it.

332
00:17:06,480 --> 00:17:08,160
Like fuck.
And they didn't, they didn't

333
00:17:08,359 --> 00:17:11,079
provide any sort of reassuring
language around it.

334
00:17:11,079 --> 00:17:14,720
They weren't saying things like,
oh, you know, 2026 will be

335
00:17:14,760 --> 00:17:16,480
final.
We don't suspect that this will

336
00:17:16,480 --> 00:17:18,960
impact future production,
anything like that.

337
00:17:19,200 --> 00:17:22,160
It was just, you know, it left
it sort of pretty, pretty open

338
00:17:22,160 --> 00:17:23,800
ended.
So I think that the kind of

339
00:17:23,800 --> 00:17:27,040
logical flow on to at least to
where my mind went is how much

340
00:17:27,040 --> 00:17:28,880
cash do they have and are they
going to be able to see this

341
00:17:28,880 --> 00:17:31,400
through?
They've got USA 100 million on

342
00:17:31,400 --> 00:17:33,520
hand.
There's another 330 million

343
00:17:33,520 --> 00:17:36,440
options floating out there with
a 10 cent exercise price.

344
00:17:36,840 --> 00:17:39,840
So a couple weeks ago they were
around $0.10, they're now around

345
00:17:39,840 --> 00:17:41,680
$0.08.
So none of them are in the

346
00:17:41,680 --> 00:17:43,800
money, but if they can, you
know, get up and stay up over

347
00:17:43,800 --> 00:17:46,880
that price, that could
potentially bring in 30 million

348
00:17:47,440 --> 00:17:48,720
Aussie bucks.
We'll kind of see.

349
00:17:48,720 --> 00:17:50,600
At this moment in time, it
doesn't look like it's going to

350
00:17:50,600 --> 00:17:53,440
happen.
And they expire in March of next

351
00:17:53,440 --> 00:17:58,440
year.
So they said they needed US $100

352
00:17:58,440 --> 00:18:02,040
million to see them through the
steady state in April of this

353
00:18:02,040 --> 00:18:03,680
year.
Since then, they spent 20.

354
00:18:03,680 --> 00:18:07,120
So that leaves 80 to be spent.
Like I said, they've got 100

355
00:18:07,120 --> 00:18:09,040
right now.
So that kind of implies a

356
00:18:09,040 --> 00:18:13,720
cushion of US 20 million, but
I'm not filled with confidence

357
00:18:13,720 --> 00:18:16,280
in and around what's kind of,
you know, happened in the past

358
00:18:16,280 --> 00:18:18,920
couple weeks.
Although there is potential they

359
00:18:18,920 --> 00:18:21,720
could work out some sort of debt
arrangement if it's if it's a

360
00:18:21,720 --> 00:18:23,880
more marginal amount of cash
they need.

361
00:18:23,880 --> 00:18:25,640
And they have mentioned in the
past that they're working with

362
00:18:25,640 --> 00:18:29,120
the US government to try and get
some sort of support in and

363
00:18:29,120 --> 00:18:31,800
around that.
But that's it's definitely cap

364
00:18:31,840 --> 00:18:33,120
facility.
Yeah, exactly to.

365
00:18:33,280 --> 00:18:35,320
Tide.
Them over never know what combos

366
00:18:35,320 --> 00:18:38,520
are going to happen at WNA this
week because that's when the the

367
00:18:38,520 --> 00:18:41,840
fuel bars and the bloody
producers are all in the one

368
00:18:41,840 --> 00:18:42,520
room.
Yeah.

369
00:18:42,640 --> 00:18:44,840
And a lot of, you know, people
are incentivized to to see this

370
00:18:44,840 --> 00:18:47,600
one come good.
You know, there's a lot of a lot

371
00:18:47,600 --> 00:18:50,520
of contracted pounds out there.
And those utilities will want

372
00:18:50,520 --> 00:18:51,440
them to come online.
They'll.

373
00:18:51,680 --> 00:18:54,800
Yeah, want it to happen.
So to get a bit of a feel for

374
00:18:54,800 --> 00:18:57,400
how much cash they are going to
produce, they did some, you

375
00:18:57,400 --> 00:18:59,720
know, very back of the envelope
rough numbers.

376
00:18:59,720 --> 00:19:05,440
And once costs have normalised,
say they have by 2026 and assume

377
00:19:05,440 --> 00:19:07,040
that they can still do that
number, which is a big

378
00:19:07,040 --> 00:19:09,160
assumption that they said £1.4
million.

379
00:19:10,040 --> 00:19:12,840
Assume the uranium spot price,
again a big assumption.

380
00:19:12,840 --> 00:19:18,240
But US 80 bucks a pound, 2/3 of
that production will be

381
00:19:18,280 --> 00:19:20,960
contracted.
I'd say that's in and around the

382
00:19:21,080 --> 00:19:26,720
US 60 bucks 60 bucks a pound
price the rest in the spot

383
00:19:26,720 --> 00:19:29,840
market that get a higher price.
I think you could estimate

384
00:19:29,840 --> 00:19:33,880
they'd get around US 67 ish per
pound for that gone off their

385
00:19:33,880 --> 00:19:37,960
all in cost of roughly US $51 a
pound.

386
00:19:38,440 --> 00:19:42,400
They would generate EBITDA of US
22 million or roughly a bit over

387
00:19:42,400 --> 00:19:45,200
Aussie $30 million.
Now again, that is that is super

388
00:19:45,200 --> 00:19:47,120
rough.
But this is a company that's

389
00:19:47,120 --> 00:19:49,840
kept at 260 million Aussie right
now.

390
00:19:49,840 --> 00:19:52,680
It's it's not a crazy amount of
cash flow with a a lot of kind

391
00:19:52,680 --> 00:19:55,960
of risk attached to it.
So yeah, it's, it's definitely

392
00:19:55,960 --> 00:19:59,680
one to to look out for and you
know, the, the EV looks, you

393
00:19:59,840 --> 00:20:02,240
know, relatively cheap right now
given they've got such a

394
00:20:02,240 --> 00:20:04,840
substantial amount of cash, but.
You know you can't look at that

395
00:20:04,840 --> 00:20:06,720
because that that needs to go
into the asset.

396
00:20:08,080 --> 00:20:11,360
I think it's a yeah, it's a big,
it's going to be an interesting

397
00:20:11,760 --> 00:20:15,840
back end of the year, that's for
sure, because we're in the, when

398
00:20:15,840 --> 00:20:21,360
they say the Northern Hemisphere
summer, how it's notoriously

399
00:20:21,360 --> 00:20:23,120
quiet.
But it's also I think by the

400
00:20:23,120 --> 00:20:25,680
sounds of the fuel bars just go
on holidays for two months.

401
00:20:26,400 --> 00:20:29,680
And so I think now's that point
when it's like, if something's

402
00:20:29,680 --> 00:20:33,280
going to happen, you know, it's
gonna happen like post

403
00:20:33,280 --> 00:20:35,600
September, yeah, based on the
historic laws.

404
00:20:35,600 --> 00:20:37,240
And these guys have just got to
do the work right.

405
00:20:37,240 --> 00:20:40,480
They've got to just get get Ross
up and humming.

406
00:20:40,480 --> 00:20:41,800
So it's it's all kind of on
their plate.

407
00:20:41,800 --> 00:20:44,000
And then we'll see what happens
in the broader uranium market,

408
00:20:44,520 --> 00:20:46,000
you know, in and around that.
But.

409
00:20:46,640 --> 00:20:48,600
Chase's cross.
We'll be talking about it, JD.

410
00:20:48,600 --> 00:20:50,520
We will be.
And now I've got you on board.

411
00:20:50,520 --> 00:20:52,240
They are good.
Is it?

412
00:20:52,360 --> 00:20:53,360
I hope I did you proud mate,
but.

413
00:20:54,760 --> 00:20:58,000
On the back of that, like as I
said, how freaking complicated

414
00:20:58,000 --> 00:21:03,240
these ISR things are, and
especially with the lithology

415
00:21:03,240 --> 00:21:06,520
and like the mapping required
and everything like, well, I

416
00:21:06,520 --> 00:21:10,680
can't verify map the lithology
of these paleo channels.

417
00:21:10,720 --> 00:21:15,800
And, and hear me out, the AI
that they've currently got so

418
00:21:15,800 --> 00:21:19,280
they know how to do AI using the
AI for the frigging like

419
00:21:19,280 --> 00:21:22,960
injection pressures and the
extraction and mapping the area

420
00:21:22,960 --> 00:21:26,440
of influence.
I can see a subsidiary verify

421
00:21:26,440 --> 00:21:32,960
uranium, Verify uranium AI.
Look, Steve Dejong's a busy man,

422
00:21:33,440 --> 00:21:38,240
but he needs me to sort of just
keep an eye on potential

423
00:21:38,240 --> 00:21:40,080
opportunities.
And I think I might have found

424
00:21:40,080 --> 00:21:42,040
one for him.
Steve, if you're listening,

425
00:21:42,120 --> 00:21:44,120
let's talk.
I might get some skin in this.

426
00:21:45,040 --> 00:21:47,840
It's my idea.
Verify uranium.

427
00:21:48,280 --> 00:21:49,920
It's a new revenue stream mate.
I see it.

428
00:21:50,000 --> 00:21:54,120
Yeah, mate, they're growing like
a friggin toddler.

429
00:21:54,560 --> 00:21:59,200
Like bloody, that eats a lot.
It's just just growing.

430
00:22:00,160 --> 00:22:02,160
Growing a lot.
Growing a lot.

431
00:22:02,480 --> 00:22:04,720
Good work verify.
Happy to happy to do business

432
00:22:04,720 --> 00:22:10,920
with you, right JC?
Actually, before my excel rant,

433
00:22:10,960 --> 00:22:13,520
yes, I would like you to
probably do yours first because

434
00:22:13,520 --> 00:22:16,000
mine doesn't really come to
anything.

435
00:22:16,360 --> 00:22:19,400
So I think it does.
But I don't want to take away.

436
00:22:19,400 --> 00:22:23,320
I don't want to hold the bloody
money miners from getting there.

437
00:22:24,400 --> 00:22:26,600
They're merchants and JC
special.

438
00:22:27,080 --> 00:22:28,880
Very good.
Do you hold this stock?

439
00:22:29,160 --> 00:22:31,720
I don't.
We've found one.

440
00:22:31,880 --> 00:22:38,800
We've found 10 so Maker, their
funding package for developing

441
00:22:38,800 --> 00:22:42,920
Murchison is being secured.
Exciting stuff, lots of money

442
00:22:43,080 --> 00:22:45,680
flowing their way, so.
More than they originally

443
00:22:46,040 --> 00:22:47,920
forecasted.
When they'll go on debt only,

444
00:22:47,920 --> 00:22:49,360
that's for sure.
Yeah.

445
00:22:49,360 --> 00:22:55,480
So the the deal itself, they've
secured a $73 million funding

446
00:22:55,480 --> 00:23:00,800
package in total and that
comprises a $26 million gold

447
00:23:00,800 --> 00:23:04,760
loan, a $12 million gold stream
and both of those are from

448
00:23:04,760 --> 00:23:07,440
Oremet.
And in addition to that, they've

449
00:23:07,440 --> 00:23:11,400
also done a $35 million
institutional placement at

450
00:23:11,400 --> 00:23:16,200
$0.05, which includes a 5
million equity investment from

451
00:23:16,200 --> 00:23:21,040
Oremet who provided the the loan
and the stream and belay board

452
00:23:21,040 --> 00:23:25,120
and management also chucked in
half a half a brick into that as

453
00:23:25,120 --> 00:23:26,160
well, so.
It comes off the back of a

454
00:23:26,160 --> 00:23:28,320
pretty, pretty big rally in the
stock, right?

455
00:23:28,320 --> 00:23:29,560
They're kind of.
Like yeah, 50.

456
00:23:29,600 --> 00:23:32,560
Percent a month and then kind
of, you know, raise the equity.

457
00:23:32,560 --> 00:23:33,560
Why wouldn't you?
I, yeah.

458
00:23:33,560 --> 00:23:34,240
Yeah.
No, I.

459
00:23:34,240 --> 00:23:35,720
Mean you call it the Aron
Collaron.

460
00:23:35,720 --> 00:23:38,520
Rise the bloody AI.
See.

461
00:23:38,720 --> 00:23:41,200
Well, I'm picking.
Picking a good time to raise

462
00:23:41,200 --> 00:23:44,040
equity, that's for sure.
So no, they'd certainly did well

463
00:23:44,040 --> 00:23:46,280
on that front with regards to
the equity.

464
00:23:46,280 --> 00:23:50,400
So as far as the funds, you know
will what they're being used for

465
00:23:50,400 --> 00:23:54,040
will flash up a table from their
preser today on the sources and

466
00:23:54,040 --> 00:23:56,480
uses.
But essentially the money will

467
00:23:56,480 --> 00:23:59,120
be used for the remaining
development and ramp up costs

468
00:23:59,120 --> 00:24:02,040
for Murchison up until basically
positive cash flow.

469
00:24:02,440 --> 00:24:07,000
And they've also in light of the
sort of expanded processing

470
00:24:07,000 --> 00:24:11,440
capacity when they picked up
that larger bull meal a couple

471
00:24:11,440 --> 00:24:15,880
months ago, they're accelerating
access to some high grade

472
00:24:15,880 --> 00:24:18,080
underground areas to support
that.

473
00:24:18,080 --> 00:24:21,280
So putting some money into that
and you know the usual

474
00:24:21,280 --> 00:24:24,720
expiration, corporate costs, all
the that sort of a stuff which

475
00:24:24,720 --> 00:24:28,600
leaves a $22 million working
capital buffer.

476
00:24:29,480 --> 00:24:30,800
Use of funds.
Building a mine.

477
00:24:31,280 --> 00:24:35,600
Building a mine, basically.
So by the time all that washes

478
00:24:35,600 --> 00:24:38,920
out, they'll have a pro forma
market cap of around just over

479
00:24:38,920 --> 00:24:42,280
$100 million at five and a half
cents, which is where they're

480
00:24:42,280 --> 00:24:46,000
roughly trading as at now.
Once that placement's done and

481
00:24:46,000 --> 00:24:48,960
the formal docks for the
Oramette facilities is due to be

482
00:24:48,960 --> 00:24:55,000
all signed up this month and 1st
Gold is expected sort of mid

483
00:24:55,000 --> 00:24:57,040
next year, in the September
quarter next year.

484
00:24:57,040 --> 00:24:59,760
So, you know, probably just
under a year away.

485
00:25:00,440 --> 00:25:04,760
Gold loan and Goldstream Ali
like in simple terms what what's

486
00:25:04,760 --> 00:25:06,760
going on here?
Yes, what's?

487
00:25:06,760 --> 00:25:09,360
The difference?
So we'll step through each of

488
00:25:09,360 --> 00:25:11,840
them sort of to explain the
mechanics, how each of them

489
00:25:12,840 --> 00:25:16,160
works.
So in simple terms of the Gold

490
00:25:16,160 --> 00:25:22,840
line make and receive $26
million from Aurumet in exchange

491
00:25:22,840 --> 00:25:28,720
maker have to deliver 9000 oz or
you know over over 12 months or

492
00:25:28,720 --> 00:25:34,440
say 750 oz a month from
September next year to August

493
00:25:34,440 --> 00:25:39,600
2026 and that assumes a gold
forward price of just shy of

494
00:25:39,600 --> 00:25:44,200
Aussie 3900 an ounce.
So are they, are they getting

495
00:25:44,760 --> 00:25:46,840
paid?
Like is it one of those they're

496
00:25:46,840 --> 00:25:50,520
getting 95% of the gold price
sort of thing or?

497
00:25:50,600 --> 00:25:53,520
That's more of how the stream
sort of works.

498
00:25:53,560 --> 00:25:55,960
Yeah.
So this is essentially a gold

499
00:25:56,080 --> 00:25:57,880
denominated line.
It's like a, like a.

500
00:25:58,600 --> 00:26:00,240
Prepaid in some ways, right?
You kind of.

501
00:26:00,400 --> 00:26:02,440
You get the money upfront, but
you've got to deliver the

502
00:26:02,440 --> 00:26:06,040
physical over predefined in
predefined quantities over time.

503
00:26:06,200 --> 00:26:07,680
Yeah.
So it's sort of like it's sort

504
00:26:07,680 --> 00:26:11,120
of like a hedging structure, but
you're getting given the money

505
00:26:11,240 --> 00:26:14,240
upfront, it's at a.
You're chipping away at your

506
00:26:14,240 --> 00:26:16,880
loan by delivering gold.
Yeah, yeah.

507
00:26:17,000 --> 00:26:17,920
You've locked in the price
though.

508
00:26:17,960 --> 00:26:19,720
Yeah, yeah, in a sense.
Yeah.

509
00:26:19,720 --> 00:26:23,360
So the way this one works is so
if the average forward price

510
00:26:23,400 --> 00:26:28,360
increases, the number of Oz they
have to deliver decreases.

511
00:26:28,360 --> 00:26:35,400
So like that total value that or
a met get is is sort of fixed

512
00:26:35,400 --> 00:26:38,520
and it just flexes depending on
the gold price of whether it's

513
00:26:38,760 --> 00:26:42,520
more oz, slightly lower price or
higher price, slightly lower oz.

514
00:26:42,520 --> 00:26:45,800
They're sort of guaranteed
themselves what they're going to

515
00:26:45,800 --> 00:26:48,240
get at the end of that sort of
gold loan maturity.

516
00:26:49,160 --> 00:26:54,040
So essentially regardless of the
gold price or a met give make a

517
00:26:54,040 --> 00:26:59,160
26,000,000 bucks to get $35
million roughly worth of gold

518
00:26:59,240 --> 00:27:04,600
over a 12 month period.
So that's a 35% return in a

519
00:27:04,600 --> 00:27:07,120
year?
That's for Oromet.

520
00:27:07,240 --> 00:27:12,440
For Oromet, yeah.
And that's not including they've

521
00:27:12,440 --> 00:27:17,600
sold them some gold call options
as well, and they're also

522
00:27:17,600 --> 00:27:21,760
getting 25,000,000 warrants from
Maker, so that would sort of

523
00:27:21,840 --> 00:27:25,040
juice up their return even more
as well.

524
00:27:25,240 --> 00:27:27,600
That's a good deal.
For Oremic, yes I.

525
00:27:29,080 --> 00:27:30,400
Want to tip in that one?
Yeah.

526
00:27:31,280 --> 00:27:33,880
Can we tip into that?
That's a bloody Noah's rule job.

527
00:27:34,720 --> 00:27:36,720
Fully understand that if you.
Oh yeah.

528
00:27:37,040 --> 00:27:38,560
Jeez.
So then moving on to the goal

529
00:27:38,560 --> 00:27:40,520
stream, which we sort of touched
them before Maddie.

530
00:27:40,520 --> 00:27:42,840
So again trying to explain this
in simple terms.

531
00:27:42,840 --> 00:27:45,720
So maker get $12 million from
Oremic.

532
00:27:46,040 --> 00:27:50,720
In exchange, they have to
deliver 4.25% of the total gold

533
00:27:50,720 --> 00:27:56,880
that they produce to Armet until
5000 ounces in total is

534
00:27:56,880 --> 00:28:03,400
delivered to Armet and Armet by
those oz at 20% of whatever the

535
00:28:03,400 --> 00:28:06,120
prevailing spot price is at that
point in time.

536
00:28:07,000 --> 00:28:11,240
Then they've actually got sort
of an additional stream on top

537
00:28:11,240 --> 00:28:14,480
of that.
Once the 5000 oz from the main

538
00:28:14,480 --> 00:28:18,440
gold stream is delivered, then
there is a what's called a tail

539
00:28:18,440 --> 00:28:22,080
stream.
So 1 1/2 percent of gold

540
00:28:22,080 --> 00:28:25,480
produced for whatever the
remaining life of mine

541
00:28:25,480 --> 00:28:30,400
production profile is, they can
purchase at the same price or

542
00:28:30,400 --> 00:28:34,840
20% of the spot price make
actually have the option to buy

543
00:28:34,840 --> 00:28:39,480
back 80% of the tail stream.
So that 1 1/2 percent component

544
00:28:39,480 --> 00:28:44,520
I spoke about for $5,000,000 to
reduce it to .3% of gold

545
00:28:44,520 --> 00:28:46,360
production rather than 1 1/2 as
well.

546
00:28:47,280 --> 00:28:52,560
So if you assume the same Ford
gold price we spoke about for

547
00:28:52,560 --> 00:28:58,000
just shive 3900 Aussie
environment, basically giving

548
00:28:58,000 --> 00:29:02,040
make a 12 million to get back 15
and a half million.

549
00:29:02,520 --> 00:29:05,120
You know, sort of worth a goal
that that, that that's the first

550
00:29:05,120 --> 00:29:11,600
5000 oz, you know, which is like
a 30% return over roughly the

551
00:29:11,600 --> 00:29:15,080
first, you know, three years of
production.

552
00:29:15,080 --> 00:29:18,200
That sort of based on the DFS
production profile looks like it

553
00:29:18,200 --> 00:29:21,520
basically takes around three
years to get that first 5000 oz.

554
00:29:22,040 --> 00:29:25,040
And then you've got the tail
stream as well, that 1 1/2

555
00:29:25,040 --> 00:29:28,120
percent that continues sort of
once that's been completed too,

556
00:29:28,120 --> 00:29:30,560
so.
Is it sort of like 10% per annum

557
00:29:30,800 --> 00:29:33,600
return?
For those first three years.

558
00:29:33,600 --> 00:29:35,640
For the first three years.
That's very rough.

559
00:29:35,640 --> 00:29:39,000
So similar to getting a loan at
10% per.

560
00:29:39,000 --> 00:29:40,600
Yeah, yeah.
Effective like you.

561
00:29:40,880 --> 00:29:43,120
Know, yeah, that's a simple way
to think about it for sure.

562
00:29:43,240 --> 00:29:46,120
I like simple.
No, especially this stuff is a

563
00:29:46,120 --> 00:29:48,720
bit definitely a bit confusing,
so.

564
00:29:48,920 --> 00:29:52,520
But I suppose the all the all
the thing about this, these are

565
00:29:52,720 --> 00:29:56,360
I guess what Shawnee Russo was
talking about, these different

566
00:29:56,360 --> 00:30:00,440
ways of getting financing
without having hedge books.

567
00:30:00,880 --> 00:30:02,960
Yeah, no, that's right.
And so.

568
00:30:03,160 --> 00:30:05,160
You're still giving away some of
the like the upside of the

569
00:30:05,160 --> 00:30:09,280
process like like in the in the
loan that they've sold coal

570
00:30:09,280 --> 00:30:11,080
options.
So they're kind of, you know,

571
00:30:11,440 --> 00:30:14,240
the counter party kind of get
some of the upside as a result

572
00:30:14,240 --> 00:30:15,040
of.
Those sort of.

573
00:30:15,080 --> 00:30:16,080
Dynamics, yeah.
Yeah.

574
00:30:16,080 --> 00:30:20,400
But but there's probably is
there a bit less risk than, you

575
00:30:20,400 --> 00:30:22,560
know some of these historic
hedge books, we've seen that

576
00:30:22,560 --> 00:30:26,720
they go for so long and become
that out of the money, whereas

577
00:30:26,720 --> 00:30:29,520
there's less risk that this.
Yeah, yeah.

578
00:30:30,320 --> 00:30:33,440
Avoid getting in that situation
a bit less.

579
00:30:33,440 --> 00:30:35,440
I don't know if it's as simple
as like there's less or more

580
00:30:35,440 --> 00:30:36,880
risk.
I think it just kind of depends

581
00:30:36,880 --> 00:30:38,640
on the terms of these
instruments, you know?

582
00:30:38,880 --> 00:30:40,320
Yeah, you could do kind of a bit
of a.

583
00:30:40,600 --> 00:30:42,640
The gold price at the time as
well.

584
00:30:43,160 --> 00:30:45,440
Yeah, it's, it's, yeah, you
definitely, you're comparing a

585
00:30:45,440 --> 00:30:48,560
sort of a lot of variable
factors that wants to sort of

586
00:30:48,560 --> 00:30:51,760
figure out what's best.
But just to give a, a sort of a

587
00:30:51,760 --> 00:30:56,120
broad brush summary, all of that
gold that or a met he's getting

588
00:30:56,120 --> 00:30:59,600
from maker in the various forms
through the gold loan and

589
00:30:59,600 --> 00:31:03,960
through the gold stream that
represents less than 5% of

590
00:31:04,160 --> 00:31:07,400
basically the the production
plan that they've got in the

591
00:31:07,400 --> 00:31:10,640
DFS.
And for the first year of

592
00:31:10,640 --> 00:31:15,520
production, it's less than 25%
of of production.

593
00:31:15,600 --> 00:31:20,160
Sorry, looking, looking at other
mobs that have had debt and

594
00:31:20,160 --> 00:31:25,120
where there's like literally you
know, 15 to 25% of production

595
00:31:25,120 --> 00:31:28,360
hedged and then it becomes out
of the money you can that's when

596
00:31:28,360 --> 00:31:32,440
it sort of gets away from them.
Whereas this looks a bit less

597
00:31:32,440 --> 00:31:35,080
exposed to if the spot price
went flying.

598
00:31:35,280 --> 00:31:37,000
This is yeah, assuming you know
in.

599
00:31:37,200 --> 00:31:39,080
Place.
Because where, where the hedging

600
00:31:39,080 --> 00:31:42,200
can sort of become problematic
is sort of as we touched on a

601
00:31:42,200 --> 00:31:43,920
bit earlier with Peninsula as
well.

602
00:31:43,920 --> 00:31:48,000
You know, if Oz this is slowed
down or the production profile

603
00:31:48,000 --> 00:31:51,360
is going to be off 20%, then
that you know, hedging

604
00:31:51,360 --> 00:31:55,160
percentage is not 15 or 20, it's
maybe you know, 50% of your

605
00:31:55,160 --> 00:31:56,800
production profile, things like
that.

606
00:31:56,800 --> 00:32:00,000
So all the sort of different
things to weigh up there.

607
00:32:01,000 --> 00:32:02,960
And if you just kick it down the
road, which isn't really

608
00:32:03,000 --> 00:32:05,000
applicable here.
No, that's right.

609
00:32:05,960 --> 00:32:12,360
So I mean why this alternative
financing through the gold loan

610
00:32:12,520 --> 00:32:17,080
and the gold strain versus say a
traditional, you know stock

611
00:32:17,080 --> 00:32:19,920
standard project finance debt
pace?

612
00:32:20,240 --> 00:32:23,280
I mean it's pretty expensive
money.

613
00:32:23,280 --> 00:32:30,240
My very rough excel calcs on the
gold loan and the gold stream

614
00:32:30,240 --> 00:32:34,840
inclusive of the tail stream
based on the DFS production

615
00:32:34,840 --> 00:32:38,200
profile and that gold forward
price we discussed earlier just

616
00:32:38,200 --> 00:32:45,440
show 3900 an ounce have Aurumet
generating at least a 30% IRR

617
00:32:45,440 --> 00:32:48,560
over the life of mine.
And that does not include, you

618
00:32:48,560 --> 00:32:51,080
know, the the call option and
doesn't include the warrants

619
00:32:51,120 --> 00:32:53,720
because that was too hard for me
to figure out.

620
00:32:55,400 --> 00:32:59,960
So normally like these non bank
lenders, the, the sort of

621
00:32:59,960 --> 00:33:03,280
project finance are as they look
to get be in and around that

622
00:33:03,280 --> 00:33:05,280
sort of.
And again, this is a general

623
00:33:05,280 --> 00:33:10,200
rule of thumb, you know, 15 to
20% IRR and bank lenders would

624
00:33:10,200 --> 00:33:12,120
probably be even a bit lower
than that.

625
00:33:12,120 --> 00:33:14,440
And then they'd try and get it
up a little bit more by

626
00:33:14,440 --> 00:33:16,080
providing hedging and things
like that.

627
00:33:16,080 --> 00:33:19,640
So it appears on the expensive
side.

628
00:33:19,640 --> 00:33:27,200
However, I feel that this to me
represents almost a, a, a bet on

629
00:33:27,200 --> 00:33:32,160
the gold price because if the
gold price runs, particularly in

630
00:33:32,160 --> 00:33:35,440
the next two years as they're
ramping up and that, you know,

631
00:33:35,440 --> 00:33:39,280
got that first year of
production, this funding package

632
00:33:40,240 --> 00:33:44,280
could potentially be a lot
cheaper than raising equity or,

633
00:33:44,440 --> 00:33:48,200
you know, bank style debt.
But you know, if it goes the

634
00:33:48,200 --> 00:33:51,680
other way, become a whole lot
more expensive.

635
00:33:51,680 --> 00:33:54,960
So OK.
So so make it need the gold

636
00:33:54,960 --> 00:33:58,640
price to go up for logical
reasons, but just in relation to

637
00:33:58,640 --> 00:34:01,600
the debt to make the debt more
bang for buck.

638
00:34:01,880 --> 00:34:05,320
Well, if you're viewing that
through, you know what's the,

639
00:34:05,320 --> 00:34:09,239
you know, the most expensive to
cheapest options for financing,

640
00:34:09,360 --> 00:34:12,159
you want the gold price to be
staying in and around where it

641
00:34:12,159 --> 00:34:15,840
is, if not higher.
Yeah, to be sort of considered

642
00:34:15,840 --> 00:34:19,239
more favourable cost wise
compared to sort of other

643
00:34:19,239 --> 00:34:21,280
potential funding options.
Go gold.

644
00:34:21,400 --> 00:34:23,760
Go gold.
The other thing Armat

645
00:34:23,760 --> 00:34:26,719
participating, participating in
the place that we've seen this

646
00:34:26,719 --> 00:34:31,520
before where financiers we'll
we'll chip into the sort of the

647
00:34:31,520 --> 00:34:33,840
equity component of a funding
package.

648
00:34:33,840 --> 00:34:36,560
So it certainly can be viewed as
a, you know, as a vote of

649
00:34:36,560 --> 00:34:39,639
confidence in the project.
I mean, certainly the company

650
00:34:39,639 --> 00:34:41,560
will tell you that.
Any company will tell you that.

651
00:34:42,560 --> 00:34:46,440
Depends what happens if it
happens when they're like, yeah,

652
00:34:46,480 --> 00:34:49,080
if you like into ramp up and
it's a distressed raise and then

653
00:34:49,159 --> 00:34:51,199
and then the lender tips into
the equity raise, it's because

654
00:34:51,960 --> 00:34:53,239
it's different.
It's a different theory there.

655
00:34:53,600 --> 00:34:56,400
No, that's right.
And so look they've already got

656
00:34:56,400 --> 00:34:58,840
some equity exposure in maker
through the warrant.

657
00:34:58,840 --> 00:35:01,480
So it's interesting to say that
they've sort of added to that

658
00:35:01,480 --> 00:35:04,600
equity exposure through
$5,000,000 in the placement.

659
00:35:05,320 --> 00:35:07,160
So which look it's certainly not
a bad thing.

660
00:35:07,160 --> 00:35:09,480
They've got some sort of extra
alignment with the company for

661
00:35:09,480 --> 00:35:13,120
things to go well.
But albeit, remember they're the

662
00:35:13,120 --> 00:35:17,760
exposure with their facilities.
So the $26 million gold loan, 12

663
00:35:17,760 --> 00:35:21,080
million stream is far more than
the equity exposure.

664
00:35:21,720 --> 00:35:23,280
So just something to keep in
mind there it.

665
00:35:23,960 --> 00:35:27,120
Might have been back and forth
going on terms and actually a

666
00:35:27,120 --> 00:35:30,480
request of of you know, makers
or they're advised that to throw

667
00:35:30,520 --> 00:35:32,200
in a commitment to the equity.
Yeah.

668
00:35:32,360 --> 00:35:36,360
And that that as well for sure.
So the other interesting thing

669
00:35:36,560 --> 00:35:41,200
if we look at the debt or
alternative financing versus

670
00:35:41,280 --> 00:35:46,400
equity split, I mean this is
practically a 5050 split between

671
00:35:46,520 --> 00:35:50,920
between the two and and we have
to look back a few years to look

672
00:35:50,920 --> 00:35:55,440
at some recent sort of
Australian ASX examples, other

673
00:35:55,440 --> 00:35:57,160
sort of single asset gold
developers.

674
00:35:58,120 --> 00:36:01,000
And this is a fair bit lower
than what we've seen back in,

675
00:36:01,040 --> 00:36:04,520
you know, so the the Bellevue
Capricorns and Caledus examples,

676
00:36:04,720 --> 00:36:09,000
which are around that, you know,
say 2/3 debt, 1/3 equity.

677
00:36:09,280 --> 00:36:12,440
Funnily enough, by the time a
lot of those companies did

678
00:36:12,520 --> 00:36:15,600
follow on raises from their sort
of initial funding package

679
00:36:15,600 --> 00:36:18,960
announcements, it kind of did
work out 5050 debt equity.

680
00:36:20,440 --> 00:36:23,680
But I feel like makeup perhaps
have taken some learnings from

681
00:36:23,760 --> 00:36:28,240
from recent history and being a
bit more conservative on that

682
00:36:28,440 --> 00:36:34,040
alternative financing to to
equity sort of split as well.

683
00:36:34,040 --> 00:36:36,600
And as we sort of touched on
before, you know, they've

684
00:36:36,600 --> 00:36:40,720
certainly taken advantage of
this sort of strong equity price

685
00:36:40,720 --> 00:36:43,680
and you know, rightfully so.
So kudos to them on timing that

686
00:36:43,680 --> 00:36:47,080
quite well.
Yeah, because I think prior to

687
00:36:47,080 --> 00:36:50,560
that what they raised in the
placement, it was like, you

688
00:36:50,560 --> 00:36:53,600
know, by the time you pay off
the debt and the mine life

689
00:36:53,600 --> 00:36:57,200
finishes, what are you going to
be sort of left with beyond

690
00:36:57,520 --> 00:36:59,280
expansion or finding something
new?

691
00:36:59,280 --> 00:37:03,560
Whereas now they've got at 35
bucks in the door at all prices,

692
00:37:03,600 --> 00:37:08,960
they've got a bit of good buffer
now a. 100% So the quantum, will

693
00:37:08,960 --> 00:37:12,280
it be enough?
This could be very famous last

694
00:37:12,280 --> 00:37:17,760
words, but I feel, you know, all
things being equal, it is.

695
00:37:18,360 --> 00:37:21,800
And assuming the gold price
stays, you know, roughly where

696
00:37:21,800 --> 00:37:27,800
it is in their DFS, they show
peak negative cash flow in, you

697
00:37:27,800 --> 00:37:31,320
know, year zero of you know -44
million.

698
00:37:31,800 --> 00:37:35,640
They've currently got a $22
million working cap buffer.

699
00:37:35,880 --> 00:37:40,400
The DFS was or one of the prices
they showed in the DFS was at

700
00:37:40,400 --> 00:37:44,840
3500 an ounce Aussie.
So you know, with spot closer to

701
00:37:44,840 --> 00:37:48,840
3700, there's another 200 bucks
an ounce of extra riggle room

702
00:37:48,840 --> 00:37:52,160
they've got there.
But they've also got a DFS

703
00:37:52,160 --> 00:37:57,920
update coming out in this year,
later this year in December sort

704
00:37:57,920 --> 00:38:01,200
of showing a higher or they seem
to be indicating a higher

705
00:38:01,200 --> 00:38:04,800
production profile to reflect
that extra processing capacity

706
00:38:04,800 --> 00:38:09,760
was spoke about, which is useful
because then the the the

707
00:38:09,760 --> 00:38:13,160
percentage of production that's
attributable to the gold line

708
00:38:13,160 --> 00:38:17,280
and the stream is lower and
they've got more exposure to the

709
00:38:17,280 --> 00:38:20,720
gold spot price, which is
hopefully where it is now or if

710
00:38:20,720 --> 00:38:22,640
not higher.
Especially when that's what as

711
00:38:22,640 --> 00:38:25,320
you said, over the life of mine,
what 95% of the production is

712
00:38:25,320 --> 00:38:29,120
going to be unhedged.
So that's that's where they'll

713
00:38:29,120 --> 00:38:30,600
make the money from the gold
price.

714
00:38:30,600 --> 00:38:32,200
Yeah.
So the more exposure they can

715
00:38:32,200 --> 00:38:35,080
get to that, the better.
And I mean, getting that first

716
00:38:35,080 --> 00:38:38,080
year of production right, which
is basically, you know, the

717
00:38:38,080 --> 00:38:41,520
period where they're paying back
that gold line as well as the

718
00:38:41,520 --> 00:38:47,400
stream is so critical.
And they sort of say if we flash

719
00:38:47,400 --> 00:38:51,280
up the, this is from the DFS,
the production profile from, you

720
00:38:51,280 --> 00:38:54,760
know, open pit versus
underground mining and the sort

721
00:38:54,760 --> 00:38:56,320
of the various deposits it comes
from.

722
00:38:56,320 --> 00:39:02,120
Pretty much all of it is from
oxide open pits in the 1st 12

723
00:39:02,120 --> 00:39:06,640
months, which you know on paper
is probably the least riskiest

724
00:39:06,640 --> 00:39:09,960
all source you could you know
get get your gold from.

725
00:39:10,120 --> 00:39:12,800
And you can smash it through
bloody quick, yeah.

726
00:39:13,000 --> 00:39:15,000
Exactly and.
Jake, did they use the I, I

727
00:39:15,000 --> 00:39:18,040
didn't read the docs, but did
they use the famous last words

728
00:39:18,040 --> 00:39:20,240
fully funded or are are you just
putting the curse on them?

729
00:39:20,560 --> 00:39:23,800
No, no, no, no, they did.
No, I think we've got on the

730
00:39:24,680 --> 00:39:28,000
where we were the the second
bullet point Mad Emergency Gold

731
00:39:28,000 --> 00:39:31,320
project is now fully funded by a
73,000,000 package.

732
00:39:31,320 --> 00:39:32,440
They're they're confident too
then.

733
00:39:32,480 --> 00:39:34,760
So it sounds like they're pretty
confident too.

734
00:39:35,280 --> 00:39:38,840
As far as what's next, as we
said, you know, they'll be

735
00:39:38,840 --> 00:39:42,440
produced, you know, first gold
mid next year, September quarter

736
00:39:42,440 --> 00:39:45,960
next year.
I think they're constructing a

737
00:39:45,960 --> 00:39:50,920
whole Rd in between sort of
sedans and Terbury to Andy Well,

738
00:39:50,920 --> 00:39:57,040
where they're refurbing the, the
plant there now, you know, great

739
00:39:57,040 --> 00:40:00,200
control drilling all of that,
that, that, that camp that they

740
00:40:00,200 --> 00:40:03,440
bought really cheap as well.
They're sort of, you know,

741
00:40:03,440 --> 00:40:05,040
installing that setting that all
up.

742
00:40:05,040 --> 00:40:10,360
So it seems like, you know, all
things going well, they should

743
00:40:10,360 --> 00:40:14,680
be OK.
And I feel like that the quantum

744
00:40:15,360 --> 00:40:18,200
with the amount of working
capital buffer they've got in

745
00:40:18,200 --> 00:40:21,080
the gold price environment
should see them through.

746
00:40:21,080 --> 00:40:24,680
But.
You never know until the the fat

747
00:40:24,680 --> 00:40:26,840
lady sings, of course.
And the thing they got on their

748
00:40:26,840 --> 00:40:33,480
side, the Sayawa, he was ex
underground manager at Andy well

749
00:40:33,600 --> 00:40:36,520
in the door say they're in the.
Door probably.

750
00:40:36,600 --> 00:40:38,880
In the Silverlight days after
Silverlight took out of a

751
00:40:38,880 --> 00:40:44,160
doorway, so they've got a lot of
and knowledge of Andy Well, so

752
00:40:44,160 --> 00:40:47,800
it's not like a they're going in
blonde so bloody.

753
00:40:47,800 --> 00:40:51,160
Yep, I'm small Goldie's mate.
I'm fucking rooting for him.

754
00:40:51,560 --> 00:40:53,360
Exactly hope it all bloody guy
as well.

755
00:40:54,960 --> 00:40:59,320
But but another truck of DSI
bolts and mesh heading up to the

756
00:40:59,320 --> 00:41:01,920
merchants.
That's one of the most exciting

757
00:41:01,920 --> 00:41:03,480
things.
Oh, that the I don't know why

758
00:41:03,480 --> 00:41:07,040
they haven't got that in their
sort of key key milestones.

759
00:41:07,760 --> 00:41:09,880
I want to.
See a rival of DSI.

760
00:41:09,880 --> 00:41:12,640
Bolts, I want to see the first
track of DSI bolts and mesh

761
00:41:12,640 --> 00:41:15,600
bloody getting dropped off at
Andy well like because they've

762
00:41:15,640 --> 00:41:17,720
they've probably dropping them
off on the way all through the

763
00:41:17,720 --> 00:41:20,360
murchison they're already
driving past they.

764
00:41:20,720 --> 00:41:22,200
Might have a warehouse there
just.

765
00:41:22,400 --> 00:41:23,840
Just off the Great Northern
Highway.

766
00:41:23,840 --> 00:41:26,920
Just mate, that Great Northern
Highway is just bolts and mesh

767
00:41:26,960 --> 00:41:28,760
humming up and down that friggin
thing.

768
00:41:28,760 --> 00:41:30,800
Good bloody mate.
Derek Kurt, he's mate.

769
00:41:30,800 --> 00:41:35,920
He's a bolts and mesh logistical
expert servicing Australia and

770
00:41:35,920 --> 00:41:38,640
the world with the greatest
ground support I've ever seen.

771
00:41:38,800 --> 00:41:41,200
It reminds me of the John who's,
yeah, just over the Causeway,

772
00:41:41,200 --> 00:41:43,680
Victoria, but just over the
Great Northern Highway.

773
00:41:44,040 --> 00:41:47,800
Purchasing what?
What is the dogs in in open pit

774
00:41:47,800 --> 00:41:49,840
but Chuck them in there too?
Chuck them in there too, just to

775
00:41:49,840 --> 00:41:51,440
be on the safe side.
Yeah, right.

776
00:41:51,440 --> 00:41:53,320
You don't want that high.
Anything happened to that

777
00:41:53,320 --> 00:41:54,400
highway?
No.

778
00:41:54,400 --> 00:41:56,720
You want to save cash and get
them gold lines paid off.

779
00:41:56,720 --> 00:41:59,680
Sorry.
Within reason, right?

780
00:41:59,680 --> 00:42:02,480
Good old.
As we said, the conference in

781
00:42:02,520 --> 00:42:04,400
our goal case.
Everyone's doing a couple of

782
00:42:04,400 --> 00:42:06,360
press eyes at the moment.
Develops.

783
00:42:06,360 --> 00:42:09,080
I had to had to read through
Develop because it got me eyes

784
00:42:09,080 --> 00:42:11,080
peeled.
I'm waiting for Bloody Developed

785
00:42:11,080 --> 00:42:15,120
to drop the hammer on copper.
Very, very, very small Ding Ding

786
00:42:15,120 --> 00:42:18,000
for me on that one.
Of course we had to have 1:00

787
00:42:18,000 --> 00:42:21,000
today.
Good on you, Jason.

788
00:42:21,600 --> 00:42:23,760
Do you just follow lot right?
Who's some good mining

789
00:42:23,760 --> 00:42:26,000
personalities around here?
I'm going to buy shares in them.

790
00:42:26,320 --> 00:42:27,640
Yeah, you've got all the big
dogs all.

791
00:42:28,040 --> 00:42:30,800
The big dogs just call it the
Big Dog ETF.

792
00:42:30,800 --> 00:42:32,960
Yeah.
So look at the Prezi like the

793
00:42:32,960 --> 00:42:35,520
interesting bits and like you
know Woodlawn and Sulphur

794
00:42:35,520 --> 00:42:37,880
Springs both fully permitted for
operations.

795
00:42:37,880 --> 00:42:39,840
So you know, sitting there ready
to go.

796
00:42:40,040 --> 00:42:42,680
As we know Woodlawn's you know
develop, I think I've got about

797
00:42:42,680 --> 00:42:47,520
two years of production ready to
go as in terms of the mine

798
00:42:47,520 --> 00:42:50,960
development.
So set up Afigura funding for

799
00:42:50,960 --> 00:42:53,080
Woodlawn set to be finalised
this quarter.

800
00:42:53,080 --> 00:42:57,080
So that was that $100 million
prepayment loan facility five

801
00:42:57,080 --> 00:42:59,920
year concentrate off take for
all the all concentrates

802
00:42:59,920 --> 00:43:02,280
produced.
But here's the interesting

803
00:43:02,280 --> 00:43:07,720
wording flexibility to give up
to 20% off take to a minority

804
00:43:08,000 --> 00:43:10,560
party.
So the traffic gear don't get

805
00:43:10,560 --> 00:43:12,640
the whole thing.
They can still give 20% to

806
00:43:12,640 --> 00:43:15,120
someone else.
And on the next slide, which

807
00:43:15,120 --> 00:43:20,240
we've talked about and they've
being fully open about strategic

808
00:43:20,240 --> 00:43:24,440
asset level investment process
has commenced, which I'll think

809
00:43:24,520 --> 00:43:29,440
has been word going around that
they're looking for a project

810
00:43:29,440 --> 00:43:35,000
level investment from who knows,
could be a downstream could be

811
00:43:35,920 --> 00:43:38,720
anyone, but says there's a small
amount of parties.

812
00:43:38,720 --> 00:43:41,560
So like whether that's a look at
look could be a posco.

813
00:43:41,560 --> 00:43:45,080
It could be like a, you know,
someone in bloody the rise of

814
00:43:45,320 --> 00:43:48,280
Japan and South Korea Toho.
Zinc.

815
00:43:48,440 --> 00:43:53,520
Yeah, one of those.
So now why I guess, and the

816
00:43:53,520 --> 00:43:57,800
question always is like, why
would develop want to sell part

817
00:43:57,800 --> 00:44:01,280
of this project when they could,
you know, get 100% of the bloody

818
00:44:01,280 --> 00:44:05,720
upside, but potentially so.
And look, it's to do mostly I

819
00:44:05,720 --> 00:44:10,760
think with this remaining $70
million in contingent payments

820
00:44:10,760 --> 00:44:16,880
for the Woodlawn acquisition
that are owed to Orion from from

821
00:44:16,880 --> 00:44:21,720
when Harem went into admin.
So now I'm pretty sure, I can't

822
00:44:21,720 --> 00:44:25,640
confirm, but I'm pretty sure all
four of these conditions still

823
00:44:25,640 --> 00:44:28,080
have to be paid, so including
the reserve ones.

824
00:44:28,080 --> 00:44:32,560
So, and because they, I think
they publicly said they want to,

825
00:44:32,560 --> 00:44:34,760
they don't want to raise
capital, they don't want

826
00:44:35,520 --> 00:44:40,240
dilution, but but they can, they
can issue these in shares as

827
00:44:40,240 --> 00:44:42,440
well.
So possible and you know, they

828
00:44:42,440 --> 00:44:45,120
might want extra cash for
acquisitions and to get some

829
00:44:45,120 --> 00:44:47,800
money in the door for selling
something at the project level.

830
00:44:49,000 --> 00:44:52,400
Now, I might be wrong about this
lower bound reserve, but I've

831
00:44:52,400 --> 00:44:54,600
gone bloody deep.
I couldn't find anything saying

832
00:44:54,600 --> 00:44:59,280
that it was paid.
So the payments are 12 and a

833
00:44:59,280 --> 00:45:02,680
half million payable on
definition of 550,000 tonnes of

834
00:45:02,680 --> 00:45:06,640
zinc equivalent underground
reserve, then another seven and

835
00:45:06,640 --> 00:45:09,600
a half million payable on
680,000 tonnes of zinc

836
00:45:09,600 --> 00:45:14,440
equivalent underground reserve
and then 20 million payable on

837
00:45:14,480 --> 00:45:16,760
FID, which has not been
announced yet.

838
00:45:16,760 --> 00:45:20,400
And then another 30 million
payable on 18 months of

839
00:45:20,400 --> 00:45:22,240
continuous commercial
production.

840
00:45:22,240 --> 00:45:29,760
So obviously triggering the
start of Woodlawn triggers some

841
00:45:29,760 --> 00:45:33,080
of like triggers the 20 triggers
the 20 million anyway.

842
00:45:33,080 --> 00:45:35,760
So there's a big balance thing
going on.

843
00:45:35,760 --> 00:45:39,240
I think.
Now I couldn't definitively find

844
00:45:39,240 --> 00:45:43,600
if they have a zinc equivalent
reserve of 550,000 tonne yet or

845
00:45:43,600 --> 00:45:48,960
not because the latest reserve
they put out in April says 6.6

846
00:45:48,960 --> 00:45:52,520
million tonne at 2.8% copper
equivalent.

847
00:45:52,840 --> 00:45:56,960
And so that's, that's 168,000
tonne of copper equivalent.

848
00:45:57,160 --> 00:46:01,760
Multiply them together, copper
today is 3.2 times the price of

849
00:46:01,760 --> 00:46:04,760
zinc.
So very roughly without

850
00:46:05,480 --> 00:46:12,280
recoveries and everything that's
around 537,000 tonne of zinc

851
00:46:12,280 --> 00:46:15,040
equivalent tonnes.
So that's below the 12 and a

852
00:46:15,040 --> 00:46:18,960
half million payment trigger.
That's that's the Bush maths as

853
00:46:19,080 --> 00:46:22,480
Bush maths, McFarland said.
Oh buddy, I'm a Bush maths guy

854
00:46:22,480 --> 00:46:26,880
too as well, Mick.
But I thought I tried to avoid

855
00:46:26,880 --> 00:46:28,680
it and I tried to ask other
people but.

856
00:46:29,080 --> 00:46:30,520
You couldn't help yourself.
I had to.

857
00:46:30,720 --> 00:46:34,000
I had to go.
I went down to stupid XL rabbit

858
00:46:34,000 --> 00:46:37,080
hole and I thought I'd better
follow the calculation method

859
00:46:37,080 --> 00:46:40,720
that they provided in that April
when they disclosed the updated

860
00:46:40,720 --> 00:46:44,760
reserve used in the deck.
So if you if you use it, I'll

861
00:46:44,760 --> 00:46:47,040
show it up.
I'll leave it show me bloody XL

862
00:46:47,040 --> 00:46:52,000
thing on screen here using like
the calculation method method

863
00:46:52,000 --> 00:46:54,640
for copper equivalent and zinc
equivalent.

864
00:46:55,760 --> 00:47:03,320
I got copper equivalent grade of
2.6% instead of 2.8 and 9.4% for

865
00:47:03,320 --> 00:47:07,040
the zinc equivalent grade.
But there's everything is

866
00:47:07,040 --> 00:47:10,440
rounded to the nearest 100,000
tonne and grades around it as

867
00:47:10,440 --> 00:47:13,880
well.
So I think the they these that's

868
00:47:13,880 --> 00:47:16,400
why the, the numbers probably
coming out a bit different.

869
00:47:16,400 --> 00:47:19,520
So because if you go off
6,000,000 tonne which is the

870
00:47:19,520 --> 00:47:25,280
total reserve tonnage times the
9.4% zinc equivalent I got gives

871
00:47:25,280 --> 00:47:28,560
564,000 tonne of zinc equivalent
tonnes.

872
00:47:29,040 --> 00:47:31,680
So that's just over the 12 and a
half million dollar trigger

873
00:47:31,680 --> 00:47:34,560
payment.
But it's not exactly 6,000,000

874
00:47:34,560 --> 00:47:38,560
tonnes I don't think, because if
you if you go convert the metal

875
00:47:38,560 --> 00:47:43,720
back to the tonnes using GRADE,
it ranges from 5.86 million

876
00:47:43,720 --> 00:47:46,240
tonnes to 6.4 million tonnes due
to the rounding.

877
00:47:46,240 --> 00:47:53,440
Oh so fucking 5.86 million tonne
at 9.4% zinc equivalent gives

878
00:47:53,440 --> 00:47:58,960
bang on 550,000 tonnes of zinc
equivalent.

879
00:47:59,320 --> 00:48:04,360
So after all this fuckery, I
reckon the zinc equivalent

880
00:48:04,360 --> 00:48:12,200
reserve is possibly just just
slightly below that triggered by

881
00:48:12,200 --> 00:48:17,680
pure luck, 550,000 tonne and
hence I don't think it's

882
00:48:17,960 --> 00:48:19,720
triggered yet.
Has been paid.

883
00:48:19,760 --> 00:48:23,360
I think maybe when the annual I
couldn't find any issue of

884
00:48:23,360 --> 00:48:26,040
securities or any mention of it,
so I don't.

885
00:48:26,280 --> 00:48:30,640
I think that's all still owing.
So where did I come to with

886
00:48:30,640 --> 00:48:32,000
that?
I don't know.

887
00:48:32,160 --> 00:48:35,520
No, I think that the takeaways,
your Bush maths basically equals

888
00:48:35,520 --> 00:48:36,840
the actual maths.
That's pretty.

889
00:48:37,120 --> 00:48:41,200
Bush maths Bush maths never let
you down. ±10%, That's all.

890
00:48:41,200 --> 00:48:42,320
Good.
So I don't.

891
00:48:42,320 --> 00:48:47,480
So it'd be interesting to see
when, yeah, triggering a reserve

892
00:48:47,480 --> 00:48:49,680
increase will trigger that
payment.

893
00:48:49,920 --> 00:48:52,520
I I do find like these, these
contingent payments tied to

894
00:48:52,520 --> 00:48:55,200
resource, the reserve milestones
interesting because the end of

895
00:48:55,200 --> 00:48:57,880
the day, like, you know, you,
you who operate the project,

896
00:48:57,920 --> 00:49:00,320
you, you have, you have control
over that work stream.

897
00:49:00,320 --> 00:49:02,800
And yeah, and kind of, you know,
we, we saw a few of these

898
00:49:02,800 --> 00:49:05,080
structured around like the min
res farming agreements and stuff

899
00:49:05,080 --> 00:49:06,920
like that for lithium and all
that sort of jazz.

900
00:49:06,920 --> 00:49:10,400
But yeah, it's like at the end
of the day, you're, you can kind

901
00:49:10,400 --> 00:49:13,160
of control some of the
assumptions or variables in

902
00:49:13,160 --> 00:49:16,080
your, in your reserve update
that will be favourable.

903
00:49:16,080 --> 00:49:18,960
And and heck, who would?
Who would blame you for for

904
00:49:18,960 --> 00:49:22,160
timing that to perfection for
your for your milestones?

905
00:49:22,160 --> 00:49:24,400
That's what I'd do, Yeah.
But like, and I don't, it

906
00:49:24,400 --> 00:49:27,760
wouldn't be live, would it in
terms of like, Nah, that deck in

907
00:49:27,760 --> 00:49:31,080
there if like copper went up
more in relation to zinc that

908
00:49:31,080 --> 00:49:33,760
may like I don't think Orion
would be ringing up like, hey,

909
00:49:33,920 --> 00:49:36,960
we've just, we've just read on
the spreadsheet that Maddie gave

910
00:49:36,960 --> 00:49:40,280
us.
You're at 552,000 tonne now.

911
00:49:40,920 --> 00:49:42,880
The public, whatever it's
published on.

912
00:49:43,040 --> 00:49:46,160
Based on those and those prices
they used in the decades to say

913
00:49:46,160 --> 00:49:48,560
like 10 1/2 thousand, I think it
was copper out there.

914
00:49:49,240 --> 00:49:50,560
What are you?
What's the future?

915
00:49:50,560 --> 00:49:52,320
Real term prices?
What are you?

916
00:49:52,320 --> 00:49:53,240
What's the word for it?
Trap.

917
00:49:53,240 --> 00:49:55,280
Yeah.
Long term consensus Real.

918
00:49:55,400 --> 00:49:59,200
Long term, yeah.
So it's not today's price, so

919
00:49:59,240 --> 00:50:00,920
yeah.
Interesting.

920
00:50:00,920 --> 00:50:04,040
Cool.
I'll, I'll just just want to let

921
00:50:04,040 --> 00:50:06,480
the listeners know.
Just not.

922
00:50:06,480 --> 00:50:08,960
Just can operate a can operate
an Excel.

923
00:50:08,960 --> 00:50:13,360
Bloody first in maths every year
at school, that's a fact.

924
00:50:14,640 --> 00:50:20,080
One more, this is a a rabbit
hole team.

925
00:50:20,520 --> 00:50:23,200
Yeah, I think JD mentioned this
story briefly back in January

926
00:50:23,600 --> 00:50:25,160
this year.
And since then, there's been

927
00:50:25,160 --> 00:50:28,160
some, some peculiar developments
at metals tech and I'll, I'll

928
00:50:28,160 --> 00:50:30,400
give, I'll give you guys the
high level synopsis.

929
00:50:31,080 --> 00:50:33,640
The asset I'm keen to talk about
with with respect to this

930
00:50:33,640 --> 00:50:38,240
company is the Sturich Gold mine
in Slovakia of of all places and

931
00:50:38,600 --> 00:50:41,600
in Middlesex.
They picked up this gold mine in

932
00:50:41,600 --> 00:50:44,120
December 2019.
It was was first by agreeing to

933
00:50:44,120 --> 00:50:46,400
an option and then exercising
that option.

934
00:50:46,400 --> 00:50:49,240
You can see here in the ISX
release they put out when they

935
00:50:49,760 --> 00:50:52,720
they first signed the option to
acquire this direct gold mine

936
00:50:53,480 --> 00:50:56,920
that you know on this on the
next page over the proposed

937
00:50:56,920 --> 00:51:00,480
terms included some some
generous related party benefits

938
00:51:00,640 --> 00:51:03,000
at the time it was proposed at
20 million performance rights to

939
00:51:03,000 --> 00:51:06,280
directors as an introduction fee
and a 2% net smelter royalty to

940
00:51:06,280 --> 00:51:09,400
a company which was a related
party of there was text

941
00:51:09,400 --> 00:51:12,200
chairperson at the time.
Not sure if these actually came

942
00:51:12,200 --> 00:51:15,520
into fruition on or not, but I
just noticed them on that page.

943
00:51:15,520 --> 00:51:18,080
Anyway, Fast forward a few years
and the company embarked on a

944
00:51:18,080 --> 00:51:21,280
few lithium things, but but they
they they dropped this scoping

945
00:51:21,280 --> 00:51:24,080
study on strike in November last
year.

946
00:51:24,840 --> 00:51:27,320
At face value, the financial
numbers for the for the project

947
00:51:27,320 --> 00:51:32,240
were tidy, 95 million CapEx for
$240 million NPV, 8 to the at

948
00:51:32,240 --> 00:51:37,120
A1550US gold price for an IRR of
116% nine year mine life.

949
00:51:37,440 --> 00:51:38,800
It all looks good.
All looks good.

950
00:51:38,800 --> 00:51:41,280
I think there's some permitting
challenges and stuff like that,

951
00:51:41,280 --> 00:51:42,520
but don't worry about that just
yet.

952
00:51:43,120 --> 00:51:47,480
On the 20th of December last
year, so you know, about a

953
00:51:47,480 --> 00:51:50,600
month, a month later, Metal
Stack said that they'd appointed

954
00:51:50,640 --> 00:51:54,080
Min Metals as a strategic
advisor to help them coordinate

955
00:51:54,080 --> 00:51:57,600
a strategic process on the
strike Gold Bond.

956
00:51:57,600 --> 00:52:01,200
They, they said there were eight
Chinese parties and four western

957
00:52:01,200 --> 00:52:04,040
parties in the data room
looking, looking to do, looking

958
00:52:04,040 --> 00:52:05,920
to do something.
And they said Min Metals would

959
00:52:05,920 --> 00:52:08,760
get a success fee of of 5% on a
on getting a deal done.

960
00:52:09,240 --> 00:52:11,280
Who?
Who's are you going to go?

961
00:52:11,320 --> 00:52:16,040
Who is Min Metals I?
Don't know, I've never before.

962
00:52:16,160 --> 00:52:17,400
Yeah, right.
There's not much about them

963
00:52:17,400 --> 00:52:22,200
online, right?
OK, here's where things get

964
00:52:22,440 --> 00:52:25,520
interesting.
In January this year, metals

965
00:52:25,520 --> 00:52:28,840
Tech they drop an announcement
saying they had received a non

966
00:52:28,840 --> 00:52:32,480
binding offer from a Canadian
private equity group called

967
00:52:32,480 --> 00:52:37,680
Transmetal Fund LP for the for
the project for, you know, cash

968
00:52:37,680 --> 00:52:41,960
upfront of 36 million plus up to
another 45 million in kind of

969
00:52:41,960 --> 00:52:45,080
contingent payment.
Now that's a that's a fair bit

970
00:52:45,080 --> 00:52:47,320
of money and it was certainly a
lot more than the the market cap

971
00:52:47,320 --> 00:52:50,440
of metals tech at the time.
And metals tech they said that

972
00:52:51,200 --> 00:52:53,640
when they revealed this non
binding offer, they said it was

973
00:52:53,880 --> 00:52:56,640
it was just the first offer to
come from the process and that

974
00:52:56,640 --> 00:52:59,840
they still open to other offers
from other parties that are that

975
00:52:59,840 --> 00:53:02,720
are in the data room.
Now what I know yeah.

976
00:53:02,920 --> 00:53:06,760
I mean really I know you, you,
you and I have both worked on

977
00:53:07,000 --> 00:53:09,440
sales processes before Ellie in
the past.

978
00:53:09,760 --> 00:53:13,960
It is insanely unusual to to
make an ASX announcement about a

979
00:53:13,960 --> 00:53:17,320
non binding indicative offer
received from one party mid

980
00:53:17,320 --> 00:53:18,760
process mid.
Process.

981
00:53:18,760 --> 00:53:20,840
And then say you're still open
to other ones.

982
00:53:21,200 --> 00:53:21,800
Mate.
This.

983
00:53:22,560 --> 00:53:25,320
So normally it's not.
Even a binding term sheet or

984
00:53:25,320 --> 00:53:27,920
something.
Exactly and normally an NBA OS

985
00:53:28,000 --> 00:53:31,560
is confidential, you know, but
it's just unprofessional to

986
00:53:31,560 --> 00:53:35,400
disclose like any any kind of
offer you're you're received If

987
00:53:35,400 --> 00:53:38,800
you're running a process, it's
also unusual to get one offer at

988
00:53:38,800 --> 00:53:42,240
a different time to the other.
Offers usually choose a deadline

989
00:53:42,240 --> 00:53:44,720
for stage 1 bid submissions if
you're running a process and in

990
00:53:44,720 --> 00:53:48,080
general everyone submits their
bid either on that day or or the

991
00:53:48,080 --> 00:53:50,400
day before because there's
there's information will.

992
00:53:50,400 --> 00:53:52,480
Disadvantages at the same.
Time, right yeah.

993
00:53:52,480 --> 00:53:55,000
And you're like, if if you
submitted it a week early, like

994
00:53:55,120 --> 00:53:56,600
you're at an informational
disadvantage.

995
00:53:56,600 --> 00:53:59,160
If if, if the advise or
whatever, like if, if something

996
00:53:59,160 --> 00:54:01,080
happens with that information
before others submit their bid.

997
00:54:01,080 --> 00:54:03,240
So you just you always, you
always submit it right at the

998
00:54:03,240 --> 00:54:04,920
last minute.
Yeah, that's just the way you do

999
00:54:04,920 --> 00:54:05,440
things.
Yeah.

1000
00:54:05,880 --> 00:54:10,480
So but the unusual elements of
of this announcement, they

1001
00:54:10,480 --> 00:54:13,280
didn't stop there.
As Jeremy rapper tweeted at the

1002
00:54:13,280 --> 00:54:16,720
time, if you Google Trans Metal
Fund LP, you don't find

1003
00:54:16,720 --> 00:54:18,120
anything.
No company website, no

1004
00:54:18,120 --> 00:54:20,760
directors, etcetera.
There's also no comment or press

1005
00:54:20,760 --> 00:54:23,360
release from anyone affiliated
with Trans Metal Fund that I can

1006
00:54:23,360 --> 00:54:27,120
see either in the Metals Tech
press release or elsewhere.

1007
00:54:28,280 --> 00:54:29,760
So.
So with more than a few question

1008
00:54:29,760 --> 00:54:32,080
marks floating about, Middlesex
unfortunately found themselves

1009
00:54:32,080 --> 00:54:34,280
in the sin bin for a few weeks
as they they appeared to be

1010
00:54:34,280 --> 00:54:38,400
going back and forth with ASX
who was pulling them up on their

1011
00:54:38,400 --> 00:54:41,680
disclosure.
And before being reinstated they

1012
00:54:41,680 --> 00:54:44,680
uploaded an announcement that
included a a bit more colour on

1013
00:54:44,680 --> 00:54:48,920
the mysterious Trans Metal Fund,
presumably after ASX requested

1014
00:54:48,920 --> 00:54:50,880
it.
So this time they list 3

1015
00:54:50,880 --> 00:54:53,280
directors of Trans Metal Fund
and give their BIOS.

1016
00:54:53,280 --> 00:54:57,600
That was just Michael Bohm,
James Yang and parties Farsangi

1017
00:54:57,840 --> 00:55:02,440
in, In May we get another
process update and, and that is

1018
00:55:02,520 --> 00:55:04,760
again unconventional to say the
least.

1019
00:55:05,000 --> 00:55:08,200
This time they say they're
holding site visits for parties.

1020
00:55:08,520 --> 00:55:11,400
It's Durek and they say one of
China's largest gold miners has

1021
00:55:11,400 --> 00:55:13,960
recently attended a site visit
as part of it's due diligence

1022
00:55:13,960 --> 00:55:16,840
process.
At least I didn't name the

1023
00:55:16,880 --> 00:55:21,560
entity this time, but it's still
a Piven unconventional release

1024
00:55:21,560 --> 00:55:24,280
in relation to a a strategic
process you're running.

1025
00:55:25,040 --> 00:55:27,360
I've never seen that before.
No, I don't think so.

1026
00:55:27,440 --> 00:55:30,120
Yeah, we've got a party
conducting DD.

1027
00:55:30,480 --> 00:55:34,240
Yeah, on side, George, I mean
George Saccoli Digger's

1028
00:55:34,240 --> 00:55:37,240
presentation, probably the most
similar recent example I can

1029
00:55:37,280 --> 00:55:40,760
think of, but it is quite
unusual to be speaking about

1030
00:55:40,760 --> 00:55:43,760
that so, so publicly, yeah.
Yeah.

1031
00:55:44,200 --> 00:55:46,920
OK.
So a week later they launch an

1032
00:55:46,920 --> 00:55:49,600
SPP to bring a bit of money into
the company.

1033
00:55:49,840 --> 00:55:52,280
And I'll draw your attention to
this quote in the accompanying

1034
00:55:52,280 --> 00:55:54,440
announcement.
When they launched the SPP says

1035
00:55:54,440 --> 00:55:56,800
the director and major
shareholders have flagged their

1036
00:55:56,800 --> 00:56:00,040
intention to participate in the
SPP alongside other

1037
00:56:00,040 --> 00:56:02,800
shareholders.
Now this SPP takes a bit of AU

1038
00:56:02,800 --> 00:56:08,000
turn a month later when they say
they received $2.4 million of of

1039
00:56:08,000 --> 00:56:10,760
interest from their shareholders
to participate in that SPP.

1040
00:56:11,040 --> 00:56:13,720
They say they want to take all
of that money without scale

1041
00:56:13,720 --> 00:56:17,040
backs, but they strangely choose
to now do it via a placement

1042
00:56:17,040 --> 00:56:20,520
instead of an SPP now.
So they pop out of prospectus at

1043
00:56:20,520 --> 00:56:23,240
the same time to be able to take
the money as a placement

1044
00:56:23,240 --> 00:56:26,120
instead.
And with a placement, you've,

1045
00:56:26,240 --> 00:56:28,800
you've got, you know, these
people that got to reconfirm and

1046
00:56:28,840 --> 00:56:30,800
their interest.
It's a new offer in some

1047
00:56:30,800 --> 00:56:32,360
respect.
And so in that process, looks

1048
00:56:32,360 --> 00:56:35,480
like they didn't get the full 2
Pro 4 there and you got 1.6

1049
00:56:35,480 --> 00:56:38,600
million in the door, leaving an
$800,000 shortfall for them to

1050
00:56:38,600 --> 00:56:40,440
place.
And one of the nuances of doing

1051
00:56:40,440 --> 00:56:43,880
it as a as a placement instead
of an SP is that it becomes kind

1052
00:56:43,880 --> 00:56:47,280
of complex for directors to
participate in a placement

1053
00:56:47,280 --> 00:56:49,640
without.
You have to get shared approval.

1054
00:56:49,760 --> 00:56:51,480
So so instead.
Of is that, is that for all

1055
00:56:51,480 --> 00:56:53,400
placements, is that.
Yeah, yeah, in.

1056
00:56:53,440 --> 00:56:55,760
A Placement directors need
shareholder approval.

1057
00:56:55,880 --> 00:56:58,680
So remember that, remember that
initial thing I said that the

1058
00:56:58,680 --> 00:57:00,320
shareholders intend to
participate in the SPP.

1059
00:57:00,320 --> 00:57:03,320
Well, well, now that it's.
A place the directors.

1060
00:57:03,560 --> 00:57:06,040
Yeah.
Now that it's a placement, it

1061
00:57:06,040 --> 00:57:09,800
instead like it basically like
as as far as I can tell from the

1062
00:57:09,800 --> 00:57:13,440
disclosures, the the directors
didn't stump up up didn't tip

1063
00:57:13,440 --> 00:57:16,160
into the rays at all.
And because there was there was

1064
00:57:16,160 --> 00:57:18,200
no kind of conditional
commitment or anything like that

1065
00:57:18,200 --> 00:57:21,680
in the, in the wording and
surprise, surprise on on Friday

1066
00:57:22,200 --> 00:57:27,000
last week, discussions with
metals tech have been oh, sorry,

1067
00:57:27,000 --> 00:57:30,680
discussions between metals tech
and the trans metals fund have

1068
00:57:30,680 --> 00:57:31,320
been terminated.
Oh.

1069
00:57:31,600 --> 00:57:35,040
Wow, wow.
Really.

1070
00:57:35,280 --> 00:57:37,680
Yes.
But it gets even juicier.

1071
00:57:37,680 --> 00:57:40,560
There's more, there's.
More even that's not watching.

1072
00:57:40,720 --> 00:57:42,080
That's only that's only last
week.

1073
00:57:42,080 --> 00:57:46,000
We're up to.
Now fuck off, shout out Stella

1074
00:57:46,000 --> 00:57:49,000
JC.
We thought the the the private

1075
00:57:49,000 --> 00:57:53,160
equity group, you can't find a
website for submitted an NB I/O.

1076
00:57:53,960 --> 00:57:55,800
You have to.
I just wouldn't have predicted

1077
00:57:55,800 --> 00:57:59,040
that that it doesn't exist.
Discussions would be no, no, it

1078
00:57:59,040 --> 00:58:00,440
exists.
There's details, but you know,

1079
00:58:00,440 --> 00:58:02,840
who would have thought it would?
It would just be flimsy in it.

1080
00:58:02,840 --> 00:58:05,680
I've never seen that coming.
Anyway, then yesterday there's a

1081
00:58:05,680 --> 00:58:08,760
pretty interesting development.
Up until at this point, I hadn't

1082
00:58:08,760 --> 00:58:11,760
mentioned that there were three
only directors of the company.

1083
00:58:12,400 --> 00:58:15,440
One of those is an executive
director.

1084
00:58:15,440 --> 00:58:17,200
The other two are non executive
directors.

1085
00:58:17,200 --> 00:58:20,600
Well, the executive director
together with another

1086
00:58:20,600 --> 00:58:24,520
substantial shareholder in the
company, they agreed to sell all

1087
00:58:24,520 --> 00:58:27,680
of their shares and all of their
unvested performance rights to a

1088
00:58:27,680 --> 00:58:31,720
third party at a pretty hefty
share price premium to where

1089
00:58:32,000 --> 00:58:34,840
Metals Tech has traded.
It was, you know, the implied

1090
00:58:34,840 --> 00:58:38,360
equivalent price is about $0.53
per share and and they would

1091
00:58:38,360 --> 00:58:40,960
receive $18.5 million total for
that.

1092
00:58:41,760 --> 00:58:45,240
Now, concurrent with this
announcement, one of the non

1093
00:58:45,240 --> 00:58:49,240
executive directors resigned,
presumably immediately, leaving

1094
00:58:49,240 --> 00:58:50,760
metals tech with only only two
directors.

1095
00:58:50,760 --> 00:58:53,480
And and it's a requirement of
ASX to have three directors.

1096
00:58:53,480 --> 00:58:55,920
So they, they unfortunately had
to go back into the sin bid as

1097
00:58:55,920 --> 00:58:58,760
they try to find another
director to, to join the board

1098
00:58:58,760 --> 00:59:01,560
so that they could actually, you
know, free freely trade on ASX

1099
00:59:01,560 --> 00:59:02,640
again.
I've never.

1100
00:59:03,360 --> 00:59:06,160
I've also never heard of
performance rights being sold.

1101
00:59:06,560 --> 00:59:09,120
Yeah, that much, it's obviously
happened, but that's a, that's

1102
00:59:09,200 --> 00:59:11,520
a, that's a different.
One, it gets stranger than than

1103
00:59:11,520 --> 00:59:14,160
just the performance rights and
the shares being sold because if

1104
00:59:14,160 --> 00:59:16,600
you peel through the 32 page
announcement like when they

1105
00:59:16,600 --> 00:59:18,480
there's this becoming a
substantial shareholder and

1106
00:59:18,480 --> 00:59:20,800
attaches the sort of the share
sale kind of kind of deed or

1107
00:59:20,800 --> 00:59:22,080
whatever.
So the buyer.

1108
00:59:22,080 --> 00:59:24,520
These are the buyer of the YEAH
of their shares.

1109
00:59:24,520 --> 00:59:26,960
Their shares, the buyer of the
shares is, is this entity called

1110
00:59:26,960 --> 00:59:30,640
Minerva Investment Company and
Xiao Wu Lee.

1111
00:59:31,400 --> 00:59:35,800
So that very interestingly, the
buyer has agreed to pay both

1112
00:59:35,800 --> 00:59:39,560
sellers their outstanding
receivables owed by Metals Tech

1113
00:59:39,560 --> 00:59:42,080
as well.
So I assume to be kind of

1114
00:59:42,080 --> 00:59:44,400
accrued director fees or, and
consulting fees.

1115
00:59:44,760 --> 00:59:47,680
But you know, for each of the
kind of selling parties, there's

1116
00:59:47,680 --> 00:59:52,640
a few $100,000 there.
In any case, like you know the

1117
00:59:52,640 --> 00:59:55,560
the this is the interesting
thing in that in that date as

1118
00:59:55,560 --> 00:59:58,560
well those documents, they show
a settlement date of the 17th of

1119
00:59:58,560 --> 01:00:02,560
December.
And so there's like 3 1/2 months

1120
01:00:02,560 --> 01:00:06,440
to go to see if Minerva stumps
up the cash or, or, or, or, you

1121
01:00:06,440 --> 01:00:08,440
know, we'll see if they turn out
to be another transmittal fund.

1122
01:00:08,680 --> 01:00:11,000
But it's such a rabbit hole.
And I didn't even mention the

1123
01:00:11,000 --> 01:00:15,480
buyer of the shares Minerva in
in that agreement, they put an

1124
01:00:15,480 --> 01:00:18,760
address and it shows this
address in Kowloon, Hong Kong

1125
01:00:18,880 --> 01:00:20,880
flashed up here.
Well, if you just check that in

1126
01:00:20,880 --> 01:00:23,720
Google Maps and look at the look
at the the office building it

1127
01:00:23,720 --> 01:00:29,720
pertains to, it's just like,
yeah, it's kind of easy.

1128
01:00:30,000 --> 01:00:31,640
Maybe that's a stock standard
officer.

1129
01:00:31,640 --> 01:00:35,360
Maybe it is Oh, call Robbie, who
knows?

1130
01:00:35,360 --> 01:00:37,400
Oh.
Look, yeah, I wouldn't.

1131
01:00:37,400 --> 01:00:41,240
Yeah, who knows?
Just another day in ASX guys.

1132
01:00:41,400 --> 01:00:44,320
Wow, what a roller coaster.
Oh, it's like a clothing

1133
01:00:44,320 --> 01:00:48,360
district.
They they definitely look like

1134
01:00:48,360 --> 01:00:50,320
apartment buildings, people
hanging their clothes out on

1135
01:00:50,320 --> 01:00:52,320
their balconies.
Yeah.

1136
01:00:52,320 --> 01:00:53,640
Oh, my God.
I don't know.

1137
01:00:53,640 --> 01:00:55,160
I don't know.
We might have to go to Cal Learn

1138
01:00:55,160 --> 01:00:58,600
to visit.
Might keep you away from their

1139
01:00:58,600 --> 01:01:01,920
trap.
Well, that's bloody.

1140
01:01:01,920 --> 01:01:04,680
That is that is out there.
I'm interested that.

1141
01:01:05,320 --> 01:01:07,840
Was amazing.
It's a hell of a story.

1142
01:01:08,080 --> 01:01:10,600
Oh jeez, I don't think.
Just when you think it's the

1143
01:01:10,600 --> 01:01:12,640
story's finished, it takes
another twist.

1144
01:01:12,840 --> 01:01:14,160
That's amazing.
Yeah.

1145
01:01:14,160 --> 01:01:16,280
So do you want to put your hand
up to be their third director so

1146
01:01:16,280 --> 01:01:19,000
they can?
Read No, that's OK, I think.

1147
01:01:19,840 --> 01:01:22,360
Oh, I don't know lucky access
modern technology.

1148
01:01:22,360 --> 01:01:24,800
I've got lots of clients.
I don't think metals tech would

1149
01:01:24,800 --> 01:01:28,280
be 1 coming anytime soon.
Possibly possibly.

1150
01:01:28,360 --> 01:01:31,080
Okay, it's all right, access.
We'll keep you harming with the

1151
01:01:31,080 --> 01:01:35,840
rest of the world as the gurus,
knowing where holes go, who else

1152
01:01:35,840 --> 01:01:39,160
we got.
In the show we had verify and

1153
01:01:39,320 --> 01:01:41,840
DSI underground 1st we got
Maddie.

1154
01:01:41,840 --> 01:01:44,240
Ohh.
Mate, we have got plenty.

1155
01:01:44,240 --> 01:01:48,200
We've got a good old bloody
Silverstein, we're good old CR

1156
01:01:48,200 --> 01:01:52,280
insurance, good old Greenlands
equipment, good old Kay drill

1157
01:01:52,880 --> 01:01:57,480
and oh, can't forget about idea.
I'm looking forward to the

1158
01:01:57,480 --> 01:02:01,480
maiden Padia at RIP this week.
It's going to be bloody fruitful

1159
01:02:01,520 --> 01:02:04,840
and mineral mining services.
And don't forget to get a spark

1160
01:02:04,840 --> 01:02:07,880
chart up.
Yeah, Hoodoo Money Miners

1161
01:02:08,240 --> 01:02:10,880
Information contained in this
episode of Money of Mine is of

1162
01:02:10,880 --> 01:02:12,920
general nature only and does not
take into account the

1163
01:02:12,920 --> 01:02:16,520
objectives, financial situation
or needs of any particular

1164
01:02:16,520 --> 01:02:18,600
person.
Before making any investment

1165
01:02:18,600 --> 01:02:21,640
decision, you should consult
with your financial advisor and

1166
01:02:21,640 --> 01:02:25,480
consider how the advice is to
your objectives, financial

1167
01:02:25,480 --> 01:02:26,960
situation and needs.