The Most Exciting Mining Deal of 2025

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JD this is aggressive, this is
hostile.

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There are two well capitalised
bidders going toe to toe and

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neither has showed discipline on
price yet.

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This is the rare and beautiful
situation where someone could

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end up paying a stupid price.
Are you interested?

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Yeah, I bought this water to
hijack me because of padded

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oils, and I was like, oh, you
know what?

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I've been coming here for
lozenges the last couple of

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days.
It's.

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Probably funny, mate.
I know what's going to get you

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excited what M&A is back.
Well, hostile, hostile, hostile

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M&A mate, this is.
Yeah, I'm in SO.

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Camel, they have upped their
offer for for New World and it

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looks like Cantera is snapping
up stock in the market.

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We're also going to go to West
Africa.

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We're going back to Ghana, mate.
It's been a little while.

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There is a super interesting
quick little company that was a

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bit off the radar.
I think it was off.

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A lot of people use radars and.
$500 million US financing for a

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company that I've never heard
of.

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The big dollars, yeah, But
they've attracted big names in

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the mining finance world.
And yeah, I'm keen to see if

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they can sort of promise on some
of these, deliver on some of

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these.
Promises, they're special, sits

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Alpha potentially in this
episode, JD.

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And Speaking of delivering on
promises, this episode is

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brought to you by the crew who
just gets it done, JDMMS.

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MMS mate, if you're out there
and you need a contract, minor

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MMS are the.
People you call beyond just

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ripping out the dirt, they've
got a top notch tech services

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team, engineers to schedulers
and surveyors all to get the job

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done for you.
It's even better if you want to

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de risk a project but you don't
even have the bandwidth.

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You know, the ore body is just
sitting out there, the cash flow

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is just waiting to be ripped
out.

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Get in touch with the team,
it'll tailor a solution.

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For you mate, I'm picturing that
you're just ripping the cash

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flow out of the ground.
Don't sleep on this $5000 per oz

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gold price.
Whether it's mining, drilling,

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blast or loading hall work,
there is no job MMS cannot

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deliver on.
Go MMS.

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OK JD, my favorite thing
happened today.

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Favorite thing ever.
A hostile MMA.

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It's on and and whenever there's
a hostile battle and it's and

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it's competitive and it's
contentious and these things,

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they need a name, right?
When we had Genesis going head

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to head with Silver Lake, it was
the battle for Leonora.

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When PRM was tussling with Leon
Oil and Gemcorp for Sierra

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Rutile, it was the fumble in the
jungle and JD.

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Now I think we have the trilogy
in the series and the third, the

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third one in the series is
always the best 1.

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You know that.
But you know what?

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You know what the name is?
The rack attack in Arizona all.

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Right.
No, no surprises.

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We're talking about new world
mate.

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And I'm keen to hear from the
money minders what they reckon

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of rack attack.
Let's let's RIP into this.

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It's got me excited because
we've got an update to the

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takeover situation and we spoke
about this on a very last

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episode just two days ago.
So I won't, I won't rehash the

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first installment in the Rack
Attack in Arizona.

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You can go back and listen to
the Rack attack part one.

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It wasn't called the rack attack
back then, but it is now.

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But here's where we left off
last time.

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New World originally accepted an
offer from Camel for $0.05 a

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share.
Then the stock started trading

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above the bid price in the days
after that.

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It turns out Quintero Capital, a
new mining private equity fund,

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was buying the stock on market
and they found themselves with a

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12% stake, which was ultimately
disclosed.

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New World went into a trading
halt.

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They flagged there was going to
be an increase in consideration

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from Camel to come.
And that's where things were

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like left off.
Until this morning, JD, because

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the action today, the action has
just been awesome.

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What?
What is the latest mate?

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So New World comes out this
morning with an amended deal

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from Camel.
It's not, it's not $0.05

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anymore.
It's 5.3 cents a share.

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And remember Quintera when they
were buying on market in the

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days before they went into a
whole, they were buying all the

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way up to 5.1 cents a share.
That's where they were pushing

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the price to.
They disclosed they paid as high

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as 5.1 cents a share.
Now this move by Camel to

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increase the consideration the
scheme consideration in in their

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offer, it was a pre emptive
consideration bump.

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That wasn't all.
There are a few really cool

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structuring pieces in the
amended deal that came to

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surface this morning.
First, there's this placement to

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Camel for 10 million bucks at
5.3 cents a share at the same

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time.
So $10 million placement to

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Camel who are also increased
their offer to all other

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shareholders for 5.3 cents as
well at the same time.

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This placement was enough for
Quintero to get their knickers

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in a knot in a pretty big way.
They see it as a frustrating

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action.
They go to the takeovers panel

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and they ask for an urgent order
to prevent the placement to

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Camel.
The acting president of the

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Takeovers panel knocked back the
urgent nature of the request.

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And yeah, but this is the cool
structuring part of it that that

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this placement was made
conditional on New World not

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receiving a superior proposal
from a third party in the next

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14 days.
Yeah, I don't think they picked

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that one up in How to Win
Friends and Influence People.

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Mate.
Explain the difference there.

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Why does it make a difference?
Well, two, two reasons.

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It's it's not like it's not a
frustrating action in my mind.

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It's actually the, it's the
opposite.

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I, I actually think this
encourages a bid from Quintera

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here rather than prohibits a
third party from, from, from

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making a bid.
Like the risk for the risk for

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New World on New World
shareholders is Quintera buys a

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blocking stake and they block
the scheme and and and then

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doesn't make a bid for the 100%
of the company themselves and

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shareholders left like.
Hello, Gina Linus.

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We've seen this.
We've seen this.

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Yeah, the blocking, blocking
stake dynamic, but the

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conditionality of that
placement, it actually puts a

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clock on Quintero.
You've got 14 days to make a

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real takeover bid here.
Otherwise your stake is going to

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get diluted 5% from this
placement and your odds of

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blocking a deal are much harder.
It's it's a really, really cool

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piece of deal structure, but
that's not the only part made.

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What else was there?
So there's there's an amendment

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to the scheme consideration too.
In fact, there's now a takeover

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offer conditional on the scheme
failing.

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You.
Remember this mechanism, the

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dual transaction structure
designed to fend off those pesky

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deal blockers?
Well, that's there now too, just

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like we saw used really
effectively in a ZUA twice and

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used by used for Spartan very
recently by Remelius.

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All of this deal maneuvering is
pushing things in One Direction

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and that is putting pressure on
Quintera, and that's where

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things escalate quickly.
What happened?

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Eyes on Quintera here right your
move.

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What's Quintera going to do?
So new web resources that come

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out of they come out of Holt
this morning with all of this

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disclosure and you bid 5.3 cents
per share and you're just

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looking, you're looking at the
screens being like what's

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happening on screen?
Where's the price going?

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And what what is Quintero?
Well, the stock goes to 5.5

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cents all day.
At least it's like 5.5 the new

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the new low, not 5.3 where the
deal is, it's already trading

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above the new deal price.
Big volume like, yeah, big

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volume for this, for this stock.
It's a relatively, you know,

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illiquid stock, but but big
volume for this stock on this

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day.
And the read through like the

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thing you're kind of deducing
when you're seeing this is

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Cantera is still buying on
market and they're buying up to

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5.5 cents a share.
In fact, there's a very chunky

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line of stock that crossed at
5.5 cents a share, and that was

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equivalent to about 4.9% of the
ordinary shares on issues.

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It's, you know, someone who
owned at least 4.9% of New World

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crossed it in a single line of
5.5 cents per share.

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And you, you're kind of assuming
here this is Quintera.

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They're still aggressively
buying up to 5.5 now.

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And if you look at New World's
register, I'm pretty sure this

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could have only come from RCF,
right?

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RCF to me look like the only,
the only entity there with at

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least 4.9% stake.
In fact, they had a bit more

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than 4.9%.
They've got a bunch of options

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which I think are, you know, in
the money there.

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But if you convert them, you
know, their, their, their

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shareholding could be as much as
10%, but you know, they've,

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they've clearly offloaded half
of their economic interest here,

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I think to Quintera.
So in my mind, there's a pretty

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good chance here that Quintera
has close to 19.9% stake now

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like that 12% already there's
4.9 there.

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They've probably picked up a
couple more percent in the rest

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of the volume throughout the day
that they'd be close to that

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19.9% that they were looking for
that we reported they were

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looking for.
And we won't know for sure until

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there's a change in substantial
lodge just how how much stock

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Quintera now has.
But I think the highest price

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paid for stock buy Cantera so
far, it's probably 5.5 cents.

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It could be 5.6 is which is
where they've closed today.

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But I think it could be 5.5
cents.

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I've just had the butt in here.
I've just been editing the

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podcast.
And as I'm editing, I'm looking

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at the screen and I would like,
hey, I was wrong.

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It was actually Camel that was
that bought that 5% on market,

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that line of that line of stock
that crossed today for that 5%

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of New World that was bought by
Camel, not like in Terra at 5.5

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cents.
And simultaneously with this,

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this announcement that's come
out from newer resources right

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now.
So the scheme consideration has

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been bumped again to 5.5 cents.
They're saying this is, this is,

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this is insane.
Campbell's got FOMO already.

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They probably saw Quintero
buying stock on market again and

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they've already preemptively
bumped the price again and they

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preemptively bought a line of
stock.

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This is this is, this is FOMO.
This is amazing, unbelievable.

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Anyway, I'll let you get back to
the rest of the analysis.

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I am losing my mind.
This is just awesome.

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And and that conditional
placement to Camel right?

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It puts time pressure on
Quintera to make an offer in the

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next 14 days and and they can't
offer less than 5.5 cents if

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that's the highest price they've
paid for stock that's takeover.

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Laws.
OK mate.

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00:09:43,360 --> 00:09:45,760
So so what's your view then?
Quintera here?

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00:09:45,760 --> 00:09:49,040
Do they make an offer for 100%
of the company or do you think

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00:09:49,040 --> 00:09:52,880
there's an ulterior motive?
I did, I had heard a theory that

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00:09:52,880 --> 00:09:56,320
maybe Quintero had an angle to,
to block the deal and put

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pressure on New World to do AJV
instead.

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00:10:00,200 --> 00:10:03,320
I, I honestly don't give that
theory too much weight, to be

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honest.
Like Quintero, they went to the

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takeovers panel before this
placement was even announced.

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The market like there was, there
was, I think it was yesterday

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because New World had been in
the trading hall for two days.

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00:10:14,600 --> 00:10:17,920
And then it triggers the
voluntary suspension of of

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quotation.
And within that disclosure, they

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00:10:20,680 --> 00:10:22,600
actually reference a placement
for the first time.

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00:10:22,880 --> 00:10:26,000
And it's just on that disclosure
in that in that, yeah, like

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typical announcement, no details
or anything else other than a a

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placement.
Quintera, go to the Takeovers

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00:10:32,280 --> 00:10:34,560
panel, demand an an urgent
ruling.

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00:10:34,800 --> 00:10:36,760
So I don't think you do that.
I don't think you go to the

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00:10:36,760 --> 00:10:38,600
takeovers panel and demand an
urgent ruling if you're not

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00:10:38,600 --> 00:10:41,000
serious about owning 100% of
this company.

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00:10:41,600 --> 00:10:46,160
And like the response from New
World with this, we are with

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this pressure from this, you
know, private equity group is

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beautiful that everything about
the structure is forcing

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00:10:50,560 --> 00:10:53,600
Quintero to put up or shut up.
It's, it's just, it's

224
00:10:53,600 --> 00:10:55,920
fascinating because you think
the the board of, of New World,

225
00:10:55,920 --> 00:10:59,000
they're in this situation where
they can't engage with Quintero

226
00:10:59,000 --> 00:11:01,880
until an offer has actually been
put on the table here.

227
00:11:02,360 --> 00:11:05,200
Back we've seen, we've seen some
really interesting structuring

228
00:11:05,200 --> 00:11:06,680
and and sort of deal making
lately.

229
00:11:06,680 --> 00:11:11,120
So why has Quintero, do you
reckon, been so aggressive in in

230
00:11:11,120 --> 00:11:13,840
their sort of approach without,
you know, before even making an

231
00:11:13,840 --> 00:11:18,040
offer?
It's, it is interesting to to

232
00:11:18,040 --> 00:11:20,960
think through right like it is
an, it's an it's not the most

233
00:11:20,960 --> 00:11:22,600
typical strategy you, you see
out there.

234
00:11:22,600 --> 00:11:26,200
But at the point where the deal
is announced between New World

235
00:11:26,200 --> 00:11:30,320
and Camel Quintero's of the view
that hang on, we're actually

236
00:11:30,320 --> 00:11:32,840
willing to pay more here now.
They, they've, they've been

237
00:11:32,840 --> 00:11:35,680
super aggressive, but they're
probably also thinking New World

238
00:11:35,680 --> 00:11:38,720
is monitoring the, the register
on a daily basis.

239
00:11:38,720 --> 00:11:41,800
Maybe maybe they're worried
about being outed as a potential

240
00:11:41,800 --> 00:11:44,720
buyer if they start kind of
creeping up, you know, in small

241
00:11:44,720 --> 00:11:47,320
amounts on that, on that
register, because then you could

242
00:11:47,320 --> 00:11:50,320
get named and all of a sudden in
a pretty awkward situation, you

243
00:11:50,320 --> 00:11:51,960
don't even have a strategic
stake at that point.

244
00:11:52,240 --> 00:11:55,200
So I think they've just, they've
been so aggressive and and

245
00:11:55,200 --> 00:11:59,680
trying to get their hands on
19.9% in a combination of like

246
00:11:59,680 --> 00:12:03,360
cross stock on market, pushing
the share price higher, you

247
00:12:03,360 --> 00:12:05,600
know, forcing forcing camel to
actually increase the scheme

248
00:12:05,600 --> 00:12:07,200
consideration.
And they've done all of this

249
00:12:07,200 --> 00:12:10,600
before actually presumably
heading a single offer to the

250
00:12:10,600 --> 00:12:13,320
board of New world.
New World can't even engage with

251
00:12:13,320 --> 00:12:15,440
them until they do that because
they're under no shop no talk

252
00:12:15,440 --> 00:12:17,040
provisions of the of the scheme
Camel.

253
00:12:17,320 --> 00:12:19,320
Yeah, Yeah.
Before, before we dive into that

254
00:12:19,320 --> 00:12:23,800
further, then do do you think
this placement to Camel could

255
00:12:23,880 --> 00:12:26,520
potentially become an issue?
I can see like, you know, the

256
00:12:26,520 --> 00:12:29,000
question being posed around this
and and the takeover's panel.

257
00:12:29,360 --> 00:12:30,680
Yeah.
So the, the, I mean, what the

258
00:12:30,800 --> 00:12:35,320
acting president of the panel
said in in the, in the, in what

259
00:12:35,320 --> 00:12:38,400
came out today was, you know,
there's no grounds for an urgent

260
00:12:38,400 --> 00:12:40,560
ruling on this.
Like this will be reviewed in

261
00:12:40,560 --> 00:12:43,160
the ordinary course of time by
the by the panel.

262
00:12:44,720 --> 00:12:48,760
I, I, I'm not an expert on like
Takeover's panel rulings or

263
00:12:48,760 --> 00:12:51,560
anything like that, but, but I'm
actually a big fan of this

264
00:12:51,560 --> 00:12:53,360
placement.
And I think I think a

265
00:12:53,360 --> 00:12:56,360
frustrating action like is when
you, you're deterring A

266
00:12:56,360 --> 00:12:58,760
competing bid.
I truly think this placement

267
00:12:59,120 --> 00:13:01,000
encourages a competing bid and
I'll.

268
00:13:01,000 --> 00:13:05,120
Certainly expedite.
Yeah, I like it's only for 5% of

269
00:13:05,120 --> 00:13:08,080
the company.
It's not sized like very big

270
00:13:08,080 --> 00:13:11,560
where it's, you know,
prohibitive to potentially to,

271
00:13:11,640 --> 00:13:14,000
to, to, to, to a third party
kind of actually kind of, you

272
00:13:14,000 --> 00:13:17,120
know, coming in the
conditionality, you know, part

273
00:13:17,120 --> 00:13:19,320
I've I've talked about because I
quite I quite like that.

274
00:13:19,320 --> 00:13:21,680
But it also also gets both
bidders committed.

275
00:13:21,680 --> 00:13:25,680
Like for Camel, it becomes a lot
harder to justify walking away

276
00:13:25,960 --> 00:13:29,320
when you've dipped into your
pocket for another $10 million,

277
00:13:29,440 --> 00:13:30,840
You know, you've committed to a
placement.

278
00:13:30,880 --> 00:13:33,240
It's more advisor fees, more
legal fees you're paying along

279
00:13:33,240 --> 00:13:35,680
the way.
Like it's that's like, yeah,

280
00:13:35,680 --> 00:13:38,200
that that to me actually makes a
deal here and outcome like a

281
00:13:38,200 --> 00:13:41,280
lot, lot more certain.
And the the probability of it

282
00:13:41,600 --> 00:13:43,200
getting more like a lot more
likely to.

283
00:13:43,200 --> 00:13:46,880
And at the same time, it gives
Camel an incentive to walk away

284
00:13:46,880 --> 00:13:49,080
if Quintero wants to blow their
brains out on price.

285
00:13:49,240 --> 00:13:53,000
And, and and, you know, love a
love a bid that is, is, is super

286
00:13:53,000 --> 00:13:54,600
high.
Well, now, now Camel actually

287
00:13:54,600 --> 00:13:56,480
gets upside of that too.
So it does give them an

288
00:13:56,480 --> 00:13:59,080
incentive to walk away.
So like I, I actually really

289
00:13:59,080 --> 00:14:02,480
like the mechanism from, from
the I don't think it's a

290
00:14:02,480 --> 00:14:04,240
frustrating action.
I think it's, I think this is

291
00:14:04,240 --> 00:14:06,880
like this is very good for
shareholders and it encourages,

292
00:14:07,600 --> 00:14:10,680
it encourages Quintero to bid.
Yeah, and and pacing the whole

293
00:14:10,680 --> 00:14:13,400
narrative together now.
Any other sort of tidbits on the

294
00:14:13,400 --> 00:14:17,320
Grapevine that that finish the
sort of painting that is this

295
00:14:17,320 --> 00:14:21,840
kind of story?
Last last episode JDI said that

296
00:14:21,840 --> 00:14:25,480
it looked to me like Quintero
was was buying on market without

297
00:14:25,480 --> 00:14:29,720
having done DD and I was I was
assuming that because well like

298
00:14:29,920 --> 00:14:31,200
to be able to buy a market.
They haven't signed a

299
00:14:31,200 --> 00:14:33,000
standstill.
I assume everyone that is in

300
00:14:33,000 --> 00:14:35,000
this process understands.
The timing of the fun coming

301
00:14:35,000 --> 00:14:36,240
together.
Yeah, well, yeah.

302
00:14:36,240 --> 00:14:40,680
And I actually suspect if I've
been wrong about that, that

303
00:14:40,680 --> 00:14:43,080
statement.
Now, I reckon Cantera has done

304
00:14:43,080 --> 00:14:47,400
DD on a new world, but not in
the current process, not in the,

305
00:14:47,480 --> 00:14:49,800
not in the process that has has
happened here.

306
00:14:49,800 --> 00:14:53,520
I reckon Cantera likely did DD
on new world, call it like 9

307
00:14:53,520 --> 00:14:57,280
months ago, not not in the in
the last six months like was the

308
00:14:57,280 --> 00:15:00,360
process that was ultimately run
for strategic funding options,

309
00:15:00,360 --> 00:15:03,560
which resulted in a Camel offer.
But I do think Cantera has done

310
00:15:03,800 --> 00:15:07,520
DD and that actually makes this
even more juicy because they're

311
00:15:07,520 --> 00:15:11,160
not bidding blind that to some
extent there might be still some

312
00:15:11,160 --> 00:15:14,360
more DD they'd want to do and at
the point in time and then they

313
00:15:14,440 --> 00:15:16,640
ultimately may or may not submit
an NBIO.

314
00:15:16,640 --> 00:15:19,920
But if Dundee, they're serious,
this is.

315
00:15:20,040 --> 00:15:21,280
Yeah.
And we should, we should touch

316
00:15:21,280 --> 00:15:25,400
on again the the kind of history
of Cantera and the the firepower

317
00:15:25,400 --> 00:15:28,680
that they have behind them
because that's an important

318
00:15:28,720 --> 00:15:29,600
piece.
You know, you're thinking

319
00:15:29,640 --> 00:15:31,800
private equity coming in.
You're trying to figure out how

320
00:15:31,800 --> 00:15:34,640
much can they like how much?
Yeah, like the, the, how much

321
00:15:34,640 --> 00:15:38,600
weight do they have to actually
like, make a full bid for 100%

322
00:15:38,600 --> 00:15:42,000
of this company?
And so I did some homework here.

323
00:15:42,920 --> 00:15:47,400
The, the fund that's named on
the substantial notice for, for

324
00:15:47,400 --> 00:15:50,520
New World when when Kinterra
declared that they own 12% of

325
00:15:50,520 --> 00:15:53,520
the company to start with.
So that's the Kinterra Critical

326
00:15:53,520 --> 00:15:58,040
Minerals and Infrastructure
Opportunities fund #2 quite the

327
00:15:58,040 --> 00:16:00,640
mouthful.
But this isn't, this is a new

328
00:16:00,640 --> 00:16:02,560
fund.
And in fact, it was.

329
00:16:02,880 --> 00:16:05,920
This fund was only incorporated
this year according to the SEC

330
00:16:05,920 --> 00:16:08,520
filings.
And that timeline might explain

331
00:16:08,520 --> 00:16:13,120
why Quintera did not pay up nine
months ago when they may have

332
00:16:13,120 --> 00:16:16,200
done DD on New World in the 1st
place because they didn't have

333
00:16:16,200 --> 00:16:18,840
the funds finalized and the fund
wasn't actually launched yet.

334
00:16:18,840 --> 00:16:21,840
So.
So we had fund one in 23 and

335
00:16:21,840 --> 00:16:23,880
then this is the bigger and
better.

336
00:16:23,920 --> 00:16:25,440
This is new funds to deploy,
right?

337
00:16:25,440 --> 00:16:30,320
And this SEC thing says that it,
it was incorporated in 2025.

338
00:16:30,320 --> 00:16:34,960
And if Quintera did DD nine
months ago, well, this fund

339
00:16:34,960 --> 00:16:38,000
wasn't around in order to, you
know, do the deal then, but it

340
00:16:38,000 --> 00:16:40,840
is now.
And clearly the company is in

341
00:16:40,840 --> 00:16:43,800
play now.
This, this new fund, I clearly

342
00:16:43,800 --> 00:16:46,600
raised a bunch of money.
My sleuthing amongst other SEC

343
00:16:46,600 --> 00:16:50,240
filings, I found this document
which says the gross assets of

344
00:16:50,240 --> 00:16:55,160
the fund are US $444 million,
which I assume is just cash

345
00:16:55,160 --> 00:16:57,480
right now because there's no
information of them having

346
00:16:57,480 --> 00:17:01,840
deployed any of it anywhere else
other than New World chairs

347
00:17:01,840 --> 00:17:04,640
right now.
To answer like the question, I

348
00:17:04,640 --> 00:17:07,960
think they've got a lot of
firepower and I think that's

349
00:17:08,200 --> 00:17:11,319
what is really, really, really
interesting about this special

350
00:17:11,319 --> 00:17:14,560
situation right now.
This is the rack attack in

351
00:17:14,560 --> 00:17:15,440
Arizona.
JD.

352
00:17:15,440 --> 00:17:18,079
This is aggressive, this is
hostile.

353
00:17:18,440 --> 00:17:21,920
There are two well capitalized
bidders going toe to toe and

354
00:17:21,920 --> 00:17:24,160
neither has showed discipline on
price yet.

355
00:17:24,160 --> 00:17:27,960
This is the rare and beautiful
situation where someone could

356
00:17:27,960 --> 00:17:32,720
end up paying a stupid price.
Think Cardinal ignorant.

357
00:17:33,200 --> 00:17:35,360
This could be one of those,
mate.

358
00:17:35,440 --> 00:17:39,280
God, I hope it's one of those.
You know, I like I we just I

359
00:17:39,280 --> 00:17:41,080
pray for those beautiful
situations.

360
00:17:41,600 --> 00:17:44,400
I don't have any skin in the
game here, but like for for for

361
00:17:44,560 --> 00:17:47,240
new world shareholders that are
out there like I'm I'm stoked

362
00:17:47,240 --> 00:17:49,280
for them like this is this is
kind of what you want to say?

363
00:17:49,480 --> 00:17:51,800
This is really cool.
Hot off the back of the 96%

364
00:17:51,800 --> 00:17:53,240
premium gets better.
Yeah, yeah.

365
00:17:53,240 --> 00:17:55,360
And if you zoom out enough,
you're like, oh, you know, like

366
00:17:55,360 --> 00:17:57,720
if you've been holding New World
since 2021, then maybe, you

367
00:17:57,720 --> 00:17:59,920
know, there's some there's some
room to go, but.

368
00:18:00,080 --> 00:18:02,760
But I'm I'm just stoked.
This is yeah, this is like this

369
00:18:02,760 --> 00:18:06,120
is what yeah, gets people really
pumped up in our industry.

370
00:18:06,120 --> 00:18:07,760
Like I Wolf gets me really
pumped up.

371
00:18:07,920 --> 00:18:09,920
Like I want to see a.
Bit of great headlines as well.

372
00:18:09,920 --> 00:18:12,560
Oh, mate, you know, and yeah,
like if someone pays a stupid

373
00:18:12,560 --> 00:18:14,320
price, then we'll talk about it
in five years time and be like,

374
00:18:14,320 --> 00:18:16,080
man, they paid way too much.
But like for the shareholders,

375
00:18:16,080 --> 00:18:17,440
they got to sell at a stupid
price.

376
00:18:17,440 --> 00:18:19,520
It's just awesome.
Like I'm, I'm really stoked by

377
00:18:19,520 --> 00:18:21,760
that thought.
It'll be a sort of another

378
00:18:22,280 --> 00:18:24,480
chapter in the book of private
equity if it does go down that

379
00:18:24,480 --> 00:18:26,080
route and we'll we'll see how it
plays out.

380
00:18:26,080 --> 00:18:29,160
Well, that's and that's, yeah,
like another like kind of

381
00:18:29,160 --> 00:18:30,960
conversation I was, I was having
this morning.

382
00:18:30,960 --> 00:18:34,040
It was it was about this, Yeah,
this private equity group that

383
00:18:34,040 --> 00:18:37,680
have popped up and because
Quintero was born out of

384
00:18:37,680 --> 00:18:41,440
Waterton.
Just started in the late 2000s,

385
00:18:41,440 --> 00:18:43,680
another private equity Toronto
based group.

386
00:18:43,960 --> 00:18:48,040
Are they I don't think Waterton
had like fantastic returns.

387
00:18:48,880 --> 00:18:53,280
So like it is it is, you know
curious how how yeah, that.

388
00:18:53,360 --> 00:18:56,000
And again, another, another fund
has been raised to sort of do

389
00:18:56,000 --> 00:18:59,240
something and we're seeing the,
the kind of buying activity that

390
00:18:59,680 --> 00:19:02,160
luck could be ill disciplined or
maybe it'll prove to be fruitful

391
00:19:02,160 --> 00:19:04,360
every time.
But but regardless, like yeah,

392
00:19:05,240 --> 00:19:08,200
there isn't an episode to do on
the on the fruitfulness of the

393
00:19:08,400 --> 00:19:12,080
private equity model in mining,
which we're certainly dubious of

394
00:19:12,080 --> 00:19:14,600
as a strategy.
All right mate, that was

395
00:19:14,600 --> 00:19:16,080
awesome.
Fantastic.

396
00:19:16,200 --> 00:19:20,440
Now tell me what I need to know
about this West African gold

397
00:19:20,440 --> 00:19:22,320
producer that I didn't know
about before all.

398
00:19:22,720 --> 00:19:25,960
Right, mate, I'll, I'll start
with why it's so fascinating,

399
00:19:25,960 --> 00:19:28,520
why it caught my eye.
So we're talking about Asante

400
00:19:28,520 --> 00:19:32,720
gold here, huge financing like
you sort of said at the top of

401
00:19:32,720 --> 00:19:35,080
the show, half a billion U.S.
dollars.

402
00:19:35,600 --> 00:19:40,480
It's think of it as a as a recap
of this business and you'll

403
00:19:40,480 --> 00:19:43,840
remember when we spoke about God
345 months ago.

404
00:19:43,840 --> 00:19:47,760
I can't remember, but we, we
sort of categorized the types of

405
00:19:47,760 --> 00:19:50,040
way in which you can make money
in resources.

406
00:19:50,040 --> 00:19:53,040
It was, you know, what you spoke
to was the, the combination of

407
00:19:53,080 --> 00:19:55,320
different kind of strategies
we've, we've come across and,

408
00:19:55,600 --> 00:19:57,480
and think kind of work in the
resources space.

409
00:19:57,480 --> 00:20:02,800
And one of them was broadly
recapitalizations them sort of

410
00:20:02,800 --> 00:20:05,240
fitting in this sort of umbrella
of turnarounds.

411
00:20:05,560 --> 00:20:08,000
OK.
And in a nutshell, that's when

412
00:20:08,000 --> 00:20:11,800
things have not gone well for
whatever reason, but maybe some

413
00:20:11,800 --> 00:20:14,200
of the fundamentals or enough of
the fundamentals.

414
00:20:14,640 --> 00:20:17,680
Remain intact and the changes
that you think are appropriate

415
00:20:18,080 --> 00:20:21,480
have been made and things have
been addressed and therein can

416
00:20:21,480 --> 00:20:26,000
lie an opportunity.
So I think Resolute 2022 ish as

417
00:20:26,000 --> 00:20:26,760
an example.
Free.

418
00:20:26,760 --> 00:20:29,680
You mentioned Resolute.
It is, and that's sort of pretty

419
00:20:29,680 --> 00:20:31,680
the kidnapping debacle.
But they they had a good run.

420
00:20:31,800 --> 00:20:35,280
So there's plenty of other
examples out there, but I

421
00:20:35,280 --> 00:20:38,480
thought for that reason, it's
interesting enough to to crack

422
00:20:38,480 --> 00:20:40,400
open the presentation and see
what we find.

423
00:20:40,400 --> 00:20:43,080
So I'm flicking through the
presentation and here's what

424
00:20:43,080 --> 00:20:45,520
jumps out at me.
You can see in this chart here,

425
00:20:45,520 --> 00:20:47,920
right that, you know, take it
with a grain of salts from the

426
00:20:47,920 --> 00:20:51,280
company itself, but they're
talking about US $300 million in

427
00:20:51,280 --> 00:20:55,240
free cash flow next year.
Now this is a company again in

428
00:20:55,560 --> 00:21:00,040
U.S. dollar terms, that's capped
at about like 555 hundred ish

429
00:21:00,040 --> 00:21:03,320
and that's off the back of a
little bit of a run this year.

430
00:21:03,320 --> 00:21:07,800
So it's worth digging into quite
a bit because that's sort of 300

431
00:21:07,800 --> 00:21:11,040
million as they put it is a is a
pit stop on the way to to bigger

432
00:21:11,040 --> 00:21:14,280
and better things.
So there is an ambitious plan

433
00:21:14,280 --> 00:21:17,440
here and we want to kind of see
can they, can they fill that out

434
00:21:17,440 --> 00:21:19,320
and actually achieve those
goals.

435
00:21:19,640 --> 00:21:22,080
Who the hell is Asante?
Like what do they actually own?

436
00:21:22,720 --> 00:21:26,840
So we're in Ghana for this one,
specifically in the southwest of

437
00:21:26,840 --> 00:21:30,960
the country and they own the
Bibiani project and the Toronto

438
00:21:31,600 --> 00:21:34,040
project.
So these are both decent sized

439
00:21:34,040 --> 00:21:36,560
gold mines very close to one
another.

440
00:21:36,560 --> 00:21:38,080
So they're on the, they're on
the same trend.

441
00:21:38,080 --> 00:21:41,600
The the processing plants sit
literally 15 kilometers from one

442
00:21:41,600 --> 00:21:43,600
another.
These assets were bought from

443
00:21:43,600 --> 00:21:47,080
Resolute and Kinross
respectively, again for pretty

444
00:21:47,080 --> 00:21:50,240
decent amounts of money.
Over 300 million US all up was

445
00:21:50,240 --> 00:21:52,960
spent to acquire these assets
and there's a bit of drama in

446
00:21:52,960 --> 00:21:57,200
there as well in in how they got
them, but we won't digress for

447
00:21:57,200 --> 00:22:00,480
now.
There's substantial Ghanaian

448
00:22:00,840 --> 00:22:04,680
ownership in this company, which
is an important point because

449
00:22:04,960 --> 00:22:07,960
that ties in with how they
actually got their hands on the

450
00:22:07,960 --> 00:22:10,160
asset and it gives them that
local buy in.

451
00:22:10,480 --> 00:22:13,560
At least least like in that
ownership is on like listed on

452
00:22:13,560 --> 00:22:16,480
the Ghanaian Stock Exchange.
And the Frankfurt Stock Exchange

453
00:22:16,480 --> 00:22:19,360
mate and the Canadian Stock
Exchange, that's not the TSX,

454
00:22:19,360 --> 00:22:21,360
that's the Canadian, this is the
CSA, yes.

455
00:22:21,560 --> 00:22:26,680
So they will as a condition of
the financing list on the TSXV,

456
00:22:27,000 --> 00:22:30,360
which is the kind of stepping
stone on the way to the the TSX

457
00:22:30,360 --> 00:22:33,080
if things work out.
So bit of debt 50 odd million

458
00:22:33,080 --> 00:22:36,560
from one of the transactions
with Kinross before this deal.

459
00:22:37,120 --> 00:22:40,960
They come off the back of a
disappointing 2024 a 190,000

460
00:22:40,960 --> 00:22:44,800
ounces to give you a bit of feel
for the scale at a bit over US

461
00:22:44,800 --> 00:22:50,000
$2000 all in sustaining costs.
So they had problems

462
00:22:50,120 --> 00:22:53,560
constructing the sulfide plant
at at or delays rather at

463
00:22:53,560 --> 00:22:58,760
Bibiani delays and troubles on
recoveries and instead of

464
00:22:58,800 --> 00:23:02,240
producing 300,000 oz plus you're
producing below 200,000 oz.

465
00:23:02,640 --> 00:23:05,000
Therefore, as we know, you're
all in sustaining costs just

466
00:23:05,240 --> 00:23:07,840
blown out the water.
So it wasn't wasn't a good year

467
00:23:07,840 --> 00:23:10,880
and things haven't progressed as
they would have liked.

468
00:23:10,880 --> 00:23:13,120
Hence, you're recapitalizing the
business.

469
00:23:13,720 --> 00:23:17,600
Before I ask you about the
financing, OK, I am I am curious

470
00:23:18,440 --> 00:23:22,000
the the the management of a
scientist is this like, you know

471
00:23:22,280 --> 00:23:26,600
a Ghana's local like management
expertise that has gone into

472
00:23:26,600 --> 00:23:29,880
this kind of like thinking of
like a a cement core in South

473
00:23:29,880 --> 00:23:31,920
Africa?
It's it's a bit different.

474
00:23:31,920 --> 00:23:37,160
There is a lot of local talent
that is within senior

475
00:23:37,160 --> 00:23:40,520
management, but you've got
running the company a guy called

476
00:23:40,520 --> 00:23:48,120
Dave Anthony who was the CEO of
Barrick Gold West Africa and you

477
00:23:48,120 --> 00:23:52,080
know, undertook CapEx projects
to build a host of mines across

478
00:23:52,080 --> 00:23:54,800
West Africa and in South
America.

479
00:23:55,080 --> 00:24:00,880
Previous experience as well.
And you've got ACEO, who from

480
00:24:00,880 --> 00:24:05,560
the name is of maybe Brazilian
or Portuguese heritage, South

481
00:24:05,560 --> 00:24:11,400
African fellow and yeah, Anglo
Gold experience, Harmony

482
00:24:11,600 --> 00:24:13,840
experience.
So these kind of major mining

483
00:24:13,840 --> 00:24:16,000
companies.
And then you've got a lot of,

484
00:24:16,720 --> 00:24:18,280
like I said, yeah, yeah, in
there.

485
00:24:18,280 --> 00:24:22,200
But that, that point is super
important in who who's running

486
00:24:22,200 --> 00:24:25,120
the company, given what lies
ahead, this company.

487
00:24:25,120 --> 00:24:28,760
So yeah, they're, they're a bit
of an unknown entity.

488
00:24:28,760 --> 00:24:30,280
I mean, you spoke about the
stock exchanges there.

489
00:24:30,320 --> 00:24:35,080
They're listed on there, not
much coverage, which and in

490
00:24:35,080 --> 00:24:36,760
terms of like sell side
coverage, I'm talking about

491
00:24:36,760 --> 00:24:38,600
there, which makes it enticing
for me.

492
00:24:38,680 --> 00:24:41,640
It it, it adds a layer of
potential interest because it's

493
00:24:41,920 --> 00:24:44,000
brushed under the carpet.
People don't care about it, but

494
00:24:44,400 --> 00:24:46,520
maybe they will if all of a
sudden it starts printing cash.

495
00:24:46,600 --> 00:24:51,600
So yeah, the financing. 500
million US is a lot of money.

496
00:24:51,760 --> 00:24:53,800
Yeah.
So there's a few different

497
00:24:53,800 --> 00:24:56,440
announcements all come together.
If you, if you do go through the

498
00:24:56,440 --> 00:25:00,160
weeds here and see they, they
came out with a 470 million

499
00:25:00,680 --> 00:25:04,880
dollar announcement yesterday.
And then today they pace in the

500
00:25:05,240 --> 00:25:07,680
equity placement component of
that, which was a bit over is

501
00:25:07,680 --> 00:25:11,240
what they were after.
But it's, it's a lot of money

502
00:25:11,240 --> 00:25:13,800
coming together.
And in terms of who's chipping

503
00:25:13,800 --> 00:25:17,960
in, you've got Appian big name
kind of finances sort of making

504
00:25:17,960 --> 00:25:21,440
more of a name in, in recent
times, $175,000,000.

505
00:25:21,480 --> 00:25:25,160
That's a that's a decent chick
carved up in, you know, various

506
00:25:25,280 --> 00:25:28,760
tranches to it.
And then you've got first brand

507
00:25:29,320 --> 00:25:32,920
people will know through their
subsidiary RMB as well doing

508
00:25:32,920 --> 00:25:36,240
another 170 million.
Kinross are converting.

509
00:25:36,520 --> 00:25:40,040
So they're going from a 7:00-ish
percent equity ownership up and

510
00:25:40,040 --> 00:25:42,520
they're getting some of their
debts paid out as well.

511
00:25:43,200 --> 00:25:47,720
So recapitalization, but they're
still going to be a chunk of

512
00:25:47,720 --> 00:25:50,920
senior debt and subordinated
debt in the stack, which

513
00:25:51,600 --> 00:25:54,040
obviously we're not we're not
massive fans on for for anyone

514
00:25:54,040 --> 00:25:56,640
that's listened to more than a
couple shows that there is a bit

515
00:25:56,640 --> 00:25:59,640
more resiliency in the business
given there's two assets as

516
00:25:59,640 --> 00:26:02,880
opposed to just the one.
But there's still a timeline.

517
00:26:02,880 --> 00:26:05,680
You know, you got five years on
the senior, seven years on the

518
00:26:05,680 --> 00:26:06,920
subordinated.
Yep.

519
00:26:07,440 --> 00:26:09,520
If things don't go right and
they don't go to the mine plan,

520
00:26:09,520 --> 00:26:12,040
it's it's going to be grim
regardless, but.

521
00:26:12,560 --> 00:26:16,840
And you've got a shareholder in
Kinross who probably not a

522
00:26:16,840 --> 00:26:19,280
natural shareholder has had to
convert that to equity, but

523
00:26:19,320 --> 00:26:21,000
ultimately will probably want to
sell at some.

524
00:26:21,240 --> 00:26:24,440
Point exactly, exactly.
So you've got those things to to

525
00:26:24,440 --> 00:26:28,200
contend with, but really what it
comes down to is can they

526
00:26:28,200 --> 00:26:32,040
deliver on the mine plan?
So they came out with a new

527
00:26:32,040 --> 00:26:35,400
flash five year plan for the two
assets.

528
00:26:36,160 --> 00:26:39,320
They're coming to the end of a
pretty heavy investment.

529
00:26:39,400 --> 00:26:43,400
I mean, I need this capital to
finish the investment cycle, but

530
00:26:44,400 --> 00:26:46,440
they're going underground
mostly.

531
00:26:46,640 --> 00:26:51,120
So beyond 2028, you're going to
be fully kind of underground

532
00:26:51,800 --> 00:26:54,360
mining company finishing off the
open pits.

533
00:26:54,760 --> 00:27:00,840
And here you'll like this mate.
2028 five 100,000 oz at less

534
00:27:00,840 --> 00:27:04,200
than US $1000 an ounce.
That's the that's the headline.

535
00:27:04,200 --> 00:27:08,240
Then you dig into the weeds here
and what a coincidence, 2028

536
00:27:08,680 --> 00:27:14,840
they're going to produce 501,000
oz at $999 an ounce.

537
00:27:14,840 --> 00:27:17,000
It just it just so happens to
line up with the targets

538
00:27:17,000 --> 00:27:22,040
perfectly, but you you can kind
of see they're doing mid 400 ish

539
00:27:22,280 --> 00:27:28,160
1000 oz kind of range right
26272829 over this period if

540
00:27:28,160 --> 00:27:31,640
they can pull it off.
And a history of underperforming

541
00:27:31,640 --> 00:27:33,840
over over the course of.
Yeah, OK.

542
00:27:34,040 --> 00:27:38,040
A history of underperformance.
So if we look at Bibiani, this

543
00:27:38,040 --> 00:27:39,560
is the asset they got from
Resolute.

544
00:27:39,960 --> 00:27:41,280
There have been various projects
underway.

545
00:27:41,280 --> 00:27:44,440
They've had to move a, a highway
to start with, they're adding in

546
00:27:44,440 --> 00:27:47,160
new kind of satellite pits.
They're they're going

547
00:27:47,160 --> 00:27:50,280
underground, but most
importantly, they've built a

548
00:27:50,280 --> 00:27:53,440
sulphide plant.
So they needed to improve

549
00:27:53,440 --> 00:27:57,880
recoveries that they had had
shocking results as they started

550
00:27:57,880 --> 00:28:00,240
to kind of go underground, but
they didn't have the sulphide

551
00:28:00,240 --> 00:28:03,040
plant complete yet and
recoveries were coming out in

552
00:28:03,040 --> 00:28:04,800
the 70s.
So no good.

553
00:28:05,080 --> 00:28:09,480
So this should see them hit the
hit the benchmark of 92% and

554
00:28:09,480 --> 00:28:11,840
that should be complete in a
matter of months.

555
00:28:12,200 --> 00:28:15,760
Awesome.
So 170,000 ounces is guided to

556
00:28:15,760 --> 00:28:20,520
come out of here this year. 2025
reserves run through to to the

557
00:28:20,520 --> 00:28:22,240
early twenty 30s.
So not too stressed on that

558
00:28:22,240 --> 00:28:23,840
front.
But if you then look at the

559
00:28:23,840 --> 00:28:27,960
other asset, Toronto open pit
mining has been extended three

560
00:28:27,960 --> 00:28:30,840
more years.
Mining costs were were a real

561
00:28:30,840 --> 00:28:32,520
challenge here.
So they've they've got to

562
00:28:32,520 --> 00:28:34,800
swapped out the fleet.
They bought a new fleet with

563
00:28:34,840 --> 00:28:38,040
increased equipment size.
The underground fleet is being

564
00:28:38,040 --> 00:28:40,280
rebuilt and more or less
replaced as well.

565
00:28:41,120 --> 00:28:43,680
Just like Bibiani, they're
actually installing conveyor

566
00:28:43,680 --> 00:28:49,280
systems across the various hits
that they've got here to to pull

567
00:28:49,280 --> 00:28:53,280
down costs and you've got
reserves that only run for, for

568
00:28:53,640 --> 00:28:56,880
another four years.
So there is a a good track

569
00:28:56,880 --> 00:28:59,720
record of resource to to reserve
conversion here.

570
00:29:00,280 --> 00:29:03,600
But I think investors get a bit
more confidence if you see a A5

571
00:29:03,600 --> 00:29:05,800
year kind of plus time frame on
that one.

572
00:29:05,800 --> 00:29:09,560
But they've got work cut out to
get them from over 2000 oz at

573
00:29:09,560 --> 00:29:13,160
$2000.00 an ounce, down 1000
bucks.

574
00:29:13,160 --> 00:29:15,080
Well, they're pretty confident
they're going to improve grade

575
00:29:15,400 --> 00:29:18,240
there from 1.5g per ton to 2G
per.

576
00:29:18,240 --> 00:29:20,160
Ton yeah.
And that will happen as they as

577
00:29:20,160 --> 00:29:22,320
they kind of go underground as
well.

578
00:29:22,320 --> 00:29:25,040
I mean, it's it's not out of
this world grade, but going from

579
00:29:25,040 --> 00:29:27,480
1 1/2 grams a ton to 2 grams is
a big difference.

580
00:29:27,480 --> 00:29:30,880
Big difference.
So combined business, JD, like

581
00:29:30,880 --> 00:29:31,800
what do you, what do you make of
it?

582
00:29:32,240 --> 00:29:35,640
I think this goes back to the
management point because there's

583
00:29:35,720 --> 00:29:38,720
a lot of investment that has
gone into this business.

584
00:29:38,720 --> 00:29:41,280
A lot still kind of has to be
done throughout the remainder of

585
00:29:41,280 --> 00:29:45,920
2025 and into 26.
So like firstly, you kind of

586
00:29:45,920 --> 00:29:48,200
credit the management for
getting the financing done that

587
00:29:48,200 --> 00:29:52,200
had to be done.
Businesses reset in a sense.

588
00:29:52,680 --> 00:29:55,760
But like I said, you want to
make sure you're backing the

589
00:29:55,760 --> 00:30:00,160
team that can deliver on this
because in my mind that so much

590
00:30:00,160 --> 00:30:03,120
of it hinges on whether you're
backing the right team.

591
00:30:03,600 --> 00:30:06,200
Yeah.
And you know, everyone's going

592
00:30:06,200 --> 00:30:07,920
to have to kind of do their own
work and come to their own

593
00:30:07,920 --> 00:30:12,120
assessment on who we mentioned
Dave Anthony and Adriano

594
00:30:12,120 --> 00:30:15,760
Sabrera.
That's the CEO and CEO there.

595
00:30:15,960 --> 00:30:19,160
You you can see that they've got
kind of big company pedigree in

596
00:30:19,160 --> 00:30:22,560
a sense.
But yeah, I think I think you've

597
00:30:22,560 --> 00:30:25,000
got a lot of things on your
side.

598
00:30:25,000 --> 00:30:28,120
I think the Ghanaian ownership
helps in an era of increased

599
00:30:28,120 --> 00:30:31,920
resource nationalism that we've
seen across West Africa.

600
00:30:32,280 --> 00:30:35,280
I think you're kind of thankful
that you've got a lot of the

601
00:30:36,320 --> 00:30:38,880
CapEx out the way already and
that and that's kind of done.

602
00:30:39,760 --> 00:30:41,680
They've drilled out, they've
done these things, they've spent

603
00:30:41,680 --> 00:30:44,120
the money on building the new
plant.

604
00:30:45,040 --> 00:30:47,000
They just need to make sure
things can kind of come

605
00:30:47,000 --> 00:30:49,680
together.
And to to go back to the initial

606
00:30:49,680 --> 00:30:53,520
chart that we showed on what the
free cash flow could look like,

607
00:30:53,520 --> 00:30:56,120
like these are stretch targets
if you like.

608
00:30:56,120 --> 00:30:59,000
That's kind of if everything
goes well by the gold price

609
00:30:59,000 --> 00:31:03,240
exceeding your expectations,
that's what the cash flow could

610
00:31:03,240 --> 00:31:06,720
be.
But you know, you know, a lot of

611
00:31:06,720 --> 00:31:08,880
people will know what it's like
working inside a mining company

612
00:31:08,880 --> 00:31:12,360
far more than I will.
But you understand that this is

613
00:31:12,360 --> 00:31:15,880
kind of the the bar and you need
to work your way up there like.

614
00:31:15,880 --> 00:31:18,120
Broadcasting free cash flow in
2029.

615
00:31:19,080 --> 00:31:20,360
It's a good spreadsheet task
then.

616
00:31:21,640 --> 00:31:24,040
Yeah, you, you don't know what
kind of reality that's kind of

617
00:31:24,320 --> 00:31:28,240
rounded in, but the, the, the
numbers kind of look good.

618
00:31:28,240 --> 00:31:32,320
And to, to compare with another
miner who mines in the area,

619
00:31:32,880 --> 00:31:37,200
Perseus, that, that that's one
of the golden child of ASX

620
00:31:37,200 --> 00:31:40,360
listed W African miners.
You know, W African are doing a

621
00:31:40,360 --> 00:31:42,560
great job as well.
But these guys Perseus are in

622
00:31:42,560 --> 00:31:44,000
Ghana as well.
So I thought they'd be a kind of

623
00:31:44,000 --> 00:31:48,040
relevant peer to look at.
And they came out with this five

624
00:31:48,040 --> 00:31:51,000
year plan where they want to
kind of average roughly 500,000

625
00:31:51,000 --> 00:31:54,120
oz per annum.
So Asante doing a bit less than

626
00:31:54,120 --> 00:31:56,440
that.
The Perseus have a proven track

627
00:31:56,440 --> 00:31:58,680
record.
They've got an enormous cash

628
00:31:58,680 --> 00:32:05,800
pile as well and they are kept
at 4.8 ish billion dollars.

629
00:32:05,800 --> 00:32:10,080
So with all their cash, that's
an enterprise value of over 3

630
00:32:10,080 --> 00:32:14,480
1/2 billion.
Now that's 5-6 times what Asante

631
00:32:14,480 --> 00:32:16,480
is, even more.
We'll see what it all shapes

632
00:32:16,480 --> 00:32:18,600
that once this financing comes
out.

633
00:32:18,600 --> 00:32:23,400
But you can see like investors
do do pay a good bit and the

634
00:32:23,680 --> 00:32:28,400
profiles are not massively
different like Perseus all in

635
00:32:28,400 --> 00:32:32,080
sustaining costs over that
period is mid thousands, sort of

636
00:32:32,080 --> 00:32:37,080
14-15 hundred US if Asante can
get near to what they're kind of

637
00:32:37,080 --> 00:32:40,880
forecasting there.
Again, a bit smaller and nowhere

638
00:32:40,880 --> 00:32:42,400
near with the track record
there.

639
00:32:42,400 --> 00:32:45,800
But you can get a bit of a feel
for the idea that investors will

640
00:32:45,800 --> 00:32:50,840
pay you if you can get it right
now there's jurisdictional risk

641
00:32:50,840 --> 00:32:52,560
that's sort of spread for
Perseus.

642
00:32:52,560 --> 00:32:54,560
They've got growth projects and
all these other things, but they

643
00:32:54,560 --> 00:32:57,880
also need to spend over a
billion Aussie to develop

644
00:32:58,200 --> 00:33:01,520
assets.
So there is some some

645
00:33:01,520 --> 00:33:03,760
comparability in the in the
nature of the businesses.

646
00:33:04,400 --> 00:33:09,440
Yeah, the, the yes pool of
questions I'd, I'd really want

647
00:33:09,760 --> 00:33:13,920
to know more about is in the
category of can you get the

648
00:33:13,920 --> 00:33:16,280
capital out of Ghana like you
produce free cash flow in

649
00:33:16,280 --> 00:33:17,280
country.
That's all well and good.

650
00:33:17,560 --> 00:33:18,680
What's it like to actually get
it out?

651
00:33:18,680 --> 00:33:23,440
Like is there a, is there a
realistic means to, to, to

652
00:33:23,920 --> 00:33:27,680
distribute to shareholders of
other countries in any sort of

653
00:33:27,680 --> 00:33:30,720
like tax efficient way or is
that maybe more complicated?

654
00:33:30,760 --> 00:33:33,960
I mean, there clearly was a bit
of resource nationalism from

655
00:33:33,960 --> 00:33:36,760
Ghana in the 1st place and
that's why these assets belong

656
00:33:36,760 --> 00:33:39,840
to Asante.
And and maybe having sort of 40%

657
00:33:39,840 --> 00:33:44,320
plus Ghanaian interest in on
your register is a good thing

658
00:33:44,320 --> 00:33:47,320
for that because they're less,
you know, apprehensive to

659
00:33:47,320 --> 00:33:49,640
perhaps paying a dividend or
these sorts of things knowing

660
00:33:49,960 --> 00:33:53,640
half of it's coming back into
the country, maybe open-ended.

661
00:33:53,640 --> 00:33:57,920
But yeah, that the point is
super valid on achieving all

662
00:33:57,920 --> 00:33:59,240
these things.
You want to get paid for it,

663
00:33:59,240 --> 00:34:01,240
right?
We know Perseus have preferred

664
00:34:01,240 --> 00:34:03,960
the buyback kind of method.
That's one way to go about and

665
00:34:03,960 --> 00:34:05,840
that sort of reflected what they
thought of the value of their

666
00:34:05,840 --> 00:34:09,360
stock.
But super value question,

667
00:34:09,360 --> 00:34:12,639
because we know W African as
well in Burkina have

668
00:34:13,719 --> 00:34:18,679
complexities about how they get
capital out of the country, but

669
00:34:18,679 --> 00:34:21,159
to invest in another asset in
the country.

670
00:34:21,679 --> 00:34:22,840
Awesome mate.
We could.

671
00:34:23,040 --> 00:34:25,199
Well, we've got a couple
partners to thank.

672
00:34:25,280 --> 00:34:28,920
Firstly mineral mining services
and then grounded Sandy ground

673
00:34:28,920 --> 00:34:31,880
support, K drill and last but
not least cross boundary energy

674
00:34:32,320 --> 00:34:36,560
Hoodoo Hoodoo.
Now remember, I'm an idiot.

675
00:34:36,880 --> 00:34:39,320
JD is an idiot.
If you thought any of this was

676
00:34:39,320 --> 00:34:41,840
anything other than
entertainment, you're an idiot

677
00:34:42,199 --> 00:34:43,360
and you need to read out a
disclaimer.