Uranium Goes Vertical. Overblown or Only the Beginning?

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If you're an insto investor in
the space and you sort of catch

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wind that they're going to do
like a decent raise 100.

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Million for spot for spot.
You know it's on like it's, it's

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so on when you catch wind that
there's, you know, the equities

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are just going to RIP
you dogs.

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Uranium, JD uranium, it just had
its biggest one day spike in

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years and it all started with
spotlighting the fuse.

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A surprise $100 million raise
for the financial reactor has

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been upsized to $200 million and
it sent the uranium equities

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flying.
Why we dive into this?

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Plus, copper juniors get even
hotter.

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The takeover of newer resources
is getting competitive.

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Please be a bidding war and
should gold companies hold the

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gold or generate cash?
We're going to share some

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thoughts on this.
Let's dive in JD, what the hell

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is going on in the uranium
market, mate?

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Let's.
RIP in, we've got some awesome

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stuff to talk about.
So uranium first up, I'm sure

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that's what a lot of people are
keen to here.

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So sort of seeing news come out
over late Sunday and then into

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early this week all centered
around Spot, the Mighty spot,

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spot Physical, Uranium Trust.
So that is the unit that just

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holds £66 million plus of
uranium.

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They get cash, they buy more.
So like you said, 100 million US

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raising upsize to 200 and we're
going to talk about that dynamic

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a bit also very interesting.
And you mentioned the word sort

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of surprise raising there.
It was right because they raised

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money it over $25 million just
in May.

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So a bit going on there.
And and obviously the the stocks

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just rocketed for Monday,
Tuesday like deep yellow on

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Monday was up 20% plus Boss 16
and Paladin about 15% all in on

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the Monday that was.
And then if you look at the

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Sprott Uranium Miners ETF, so
the basket of all these names

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that trades in the North
American markets, that was up

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about 7%.
So spot itself has settled a

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bit.
It it jumped up from kind of 17

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ish to to about 18 bucks and
then has come back down to the

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low seventeens.
But yeah, it's been super

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volatile the last few months.
We've had that sort of narrative

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of or maybe spot has to sell
some pounds to finance itself.

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That's sort of washed away and
it's just, it's just turned like

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that, right?
It's turned probably because of

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some opportunism from the
financial sector.

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JD, let's start with Spot
itself, because this is the the

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trust of the vehicle.
It's a Sprott unit trust, which

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is effectively accumulating
pounds of uranium.

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Yeah, typically this this
vehicle can only add more pounds

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when it trades above NAV, which
it hasn't done in quite some

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time.
However, this placement and the

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last one have have been able to
get over the line.

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Yeah.
I mean, if you, you look at the

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chart right and you can see it,
it kind of flattens off in terms

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of how many pounds they've added
to their their total

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inventories, if you like.
So that dynamic with trading at

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a discount, training to premium
kind of guides it's buying

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action.
So now prior to this raise, like

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if we look at Friday's close on
a per share, per share basis was

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17 bucks and four cents, they
last traded at 1698.

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So really close like we're we're
we're talking, you know a couple

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decimals of a percent and it had
been closer to 10% not too long

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ago.
So it had been a while since

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they'd got that close and we
knew the company had been

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itching to do a raise although.
The company?

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Well, Sprott.
It is a company of sorts, right?

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The the management team of the
trust.

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Yeah, and.
Sporting Ku Klux fees, a lot of

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fees on this this vehicle.
Yeah, exactly.

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So they needed to back in May
like quell the sort of fees in

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the market that they were going
to sell pounds because that had

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been pressing the market down
been a bit of an overhang if you

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like.
And we thought that first, if

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you like had been quenched by
doing this May raising

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25,000,000 bucks meant they had
over 30 which would at kind of

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current rates funded for a bit
over a year.

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And that was done pretty
impressively because that was

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done at a 9% premium.
So they were trading at a steep

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discount to NIV and you can't
raise at a discount because it's

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dilutive and yadda, yadda,
yadda.

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So they.
Don't I think it's explicitly

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like a rule of this trust is,
you know, there there can be no,

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no buying of pounds unless it
trades above NAB.

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So this money had to come into
that vehicle above NAB I

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believe.
And they got it done, which was,

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yeah, it, it, it was well done
on their part.

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It, it like relaxed the market,
if you like.

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We didn't seem the the same kick
up that we we saw today, which

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is kind of interesting.
But it meant they could finance

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themselves for for a while and
they wouldn't have to sell these

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pounds.
And I mean.

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Well, think of the rationale,
right?

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Why do you like, why are hedge
funds or whatever tipping in to

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buy spot above NAV doesn't quite
make a lot of sense when there's

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like there's a fair bit of
carrying costs associated

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withholding holding spot like
all of the fees that go go at

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this process.
Why are you willing to pay above

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NAV?
What's your actual position

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here?
It's actually in EU equities

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which were which had high short
interest if you get set in them

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and what the flow and
implications could be.

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Yeah, I mean, and in the wider
uranium market it it's bizarre.

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There's a lot of bizarre things
about uranium and the the

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dynamics we currently see with
financial players in this

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market.
It's kind of bizarre to think

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that the overhang over a
commodity market would be the

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thinking that a physical trust
like it's a, it's a dynamic that

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only is kind of possible right
now in uranium.

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You're not going to see it in in
many other markets when the

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physical trust is big on in the
scale of things, right?

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It's AUS 5:00-ish billion dollar
vehicle.

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So yeah, you, you put that aside
because we thought in May they

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raised this money, it's all
good.

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But now mid June, we see $100
million raising kind of hit the

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boards Sunday into Monday and
then it's upsized and being done

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at a premium to NAV as well as
to the last close, a narrow one,

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but still a premium.
And the uranium spot for us

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flew.
So it's the biggest run in like

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years, like one day jump that
we'd seen and it's kind of an

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obvious outcome, right when
spot, you know, is going to use

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this cash to go into the spot
market.

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The spot market we know is by
and large financial players and

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traders and these sorts they're
trying to get in front of the

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train and and buy it before spot
can do it.

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So but but.
Brought themselves a disciplined

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like in buying the pounds
they're not going to they're not

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going to exercise the yeah, the
amount of I suppose I'll

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discipline that we saw on in
that single day on the in the

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spot market on the spot price.
So that was.

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Hard to be disciplined right
because this is a thinly traded

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you know you see lots of 100,000
lbs here and there a few trades

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a week type of thing.
Like they they did buying back

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in 23 over like a 5 month period
and they bought like 1 1/2 ish

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£1,000,000 and that helped drive
the uranium price from 60 ish

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bucks a pound up to like 90
bucks a pound.

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So completely agree like that
they are not the same as like

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the traders in the market.
They're not as kind of short

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termed in a sense.
They're they're putting it in a

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pile and they kind of think
about the way they go about it.

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But but that.
Money is earmarked 2 by pounds.

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Now that 200 million bucks?
Yeah, earmarked 2 by pounds.

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And yeah, that that gets you
excited if you're a trader.

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I suppose there's another way of
looking at it.

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And to go back to the the
narrative framing, the narrative

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has quickly flipped from being
quite a like a depressive

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narrative in the space to like
spot is good to buy pounds.

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You've got these RFPs, these
requests for proposals coming on

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the back of the European summer.
I know what you're thinking, but

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that is what people are saying
out there.

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You got big tech bullish,
supportive of the whole thing.

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You've got all these new reactor
announcements from India to the

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Czech Republic to all over the
world.

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You've got the uncertainty
around Liberation Day kind of

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waning supply still not coming
online.

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Like you can bend all the facts
and and figures and all of a

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sudden you've got a awesome
narrative to wrap around it and.

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Narrative always follows Price,
right?

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They work in tandem, they work
hand in hand and a kind of good

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sales pitch goes goes a long way
right.

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So all of a sudden spot is
trading at a discount because

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for for a couple of reasons,
they haven't actually issued the

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the new shares.
So if you're looking on the spot

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website, you you'll see that
hasn't actually changed just

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yet.
That'll happen on the 20th of

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June and the spot price jumps.
So it it looks like they're in

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A5 six 7% discount.
Already, I think I think that

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discount is structural like even
when they did the $25 million

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placement, they didn't then
trade above NAV post doing that

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and you know here here again, I
don't I don't think you're going

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to see.
And they're they're always,

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always like ish going to trade
at a discount structural to your

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point because of the fees.
Embedded in the yeah, there's,

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well, there's certainly been
periods in the past historically

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when there's enough like retail
sentiment that has facilitated a

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spot to trade at A at a premium.
And that's why they've

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accumulated the amount of pounds
that they they have over time.

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Yeah, that stopped a while ago.
This this upsizing daily

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thoughts?
Right, A lot of thoughts on

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this, right.
So if if you're an Instore

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investor in the space and you
sort of catch wind that they're

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going to do like a a decent
raising 100 million.

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A spot.
A spot.

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Particularly if you're an
Instore who's long uranium

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equities, you know, it's on like
it's, it's so on when you catch

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wind of this.
This was done through through

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Canaccord as people would have
read.

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And you know, the equities are
just going to RIP and the

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sentiment is going to change if
you you catch wind of this.

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And you also think, you know,
particularly in Australia here

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where there's such high short
interests currently in the name.

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So those come off a little bit.
But boss still at 18% plus

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Paladin like 1516% short
interest there.

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There is an opportunity.
Here isn't that crazy.

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So the uranium juniors like I, I
look at the equities and they

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are undoubtedly like trade as
high beta to the uranium spot

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price.
Explain high beta just real

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quick for.
Yeah, high beta.

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It's just like you know what a
1% move in the in the uranium

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spot price, you will get a
larger than 1% move on average

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in the in the uranium junior
equities to the spot price,

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right, Not the not the term
price, the juniors trade is high

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beta to the spot price and the
spot price is such a thin

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market.
So the financial players can

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squeeze that spot price by a
spot, but they're getting paid

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in the equities, right?
That's the trade.

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That's in fact, the trade was to
be set in the equities before

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spot launched that placement.
And if you're paying attention,

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those equities ripped a day
before spot launched that

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placement.
That news almost certainly, you

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know, fizzled out there and
drifted out into the, into the,

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yeah, the, the financial world
and, and funds got set in the

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equities and then and then they
then they bid like crazy into

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the spot placement knowing
knowing that you get the the

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high beta RIP that comes because
spot prices, yeah, certainly go

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higher.
This is this is like a textbook

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squeeze executed to perfection
when you've got high short

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interest in those equities.
And and it's the difference

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between the retail component and
the installs as well that can

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beat into big time mechanical
and they can really push that.

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You know, they they call their
good friends at Canical and they

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say, can we get a good bit of
this and hence upsize from 100

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million to 200 million.
The thing just flies.

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Well, that's that's.
The interesting thing right this

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this the winners of this trade
are the are the instos, not not

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retail, but those instos.
They need to to like to lock in

224
00:12:17,960 --> 00:12:19,600
their lock in their wins.
What do they need?

225
00:12:19,600 --> 00:12:21,720
They need to do?
They need to sell eventually

226
00:12:21,720 --> 00:12:25,560
their equities and and they
probably need retail mania to

227
00:12:25,560 --> 00:12:28,760
return to to to lock in those
gains.

228
00:12:28,760 --> 00:12:31,680
So I, you know, I think if, if
retail kind of wraps around this

229
00:12:31,680 --> 00:12:35,200
and gets excited and buys EU
equities like that's yeah,

230
00:12:35,200 --> 00:12:37,160
you're looking in the games for
the guys that got set on the

231
00:12:37,160 --> 00:12:38,760
race.
The the retail guys, we still

232
00:12:38,760 --> 00:12:41,200
feel like they've had an awesome
win and might be back to to

233
00:12:41,200 --> 00:12:44,720
previous levels for for some.
But if you look back over the

234
00:12:44,720 --> 00:12:48,720
last year, most of these most of
these charts have gone up into

235
00:12:48,720 --> 00:12:52,720
the right now after or perhaps
even less than that after having

236
00:12:52,720 --> 00:12:54,360
a bit of a brutal year before
that.

237
00:12:54,440 --> 00:12:56,080
Well, so isn't that kind of
curious, right?

238
00:12:56,080 --> 00:12:59,320
Because, you know, you talked to
all the positive like market

239
00:12:59,440 --> 00:13:01,960
thematic stuff and the narrative
kind of I think gets wrapped

240
00:13:01,960 --> 00:13:06,680
around spot price and spot price
is thin and manipulated, yada

241
00:13:06,720 --> 00:13:08,480
yada.
But without.

242
00:13:08,480 --> 00:13:11,120
Spot without spot without spot,
Yeah.

243
00:13:11,360 --> 00:13:13,800
Where is where is like where?
Where's uranium right now?

244
00:13:13,800 --> 00:13:15,440
Where's the uranium?
Like I said, it's a bizarre

245
00:13:15,440 --> 00:13:20,360
market.
It's it's a truly wacky and kind

246
00:13:20,360 --> 00:13:23,840
of perplexing market.
And so much of this news just

247
00:13:23,840 --> 00:13:29,600
relies on a physical trust which
is not related to the the

248
00:13:29,600 --> 00:13:31,640
fundamentals.
Like it tries to piggyback off

249
00:13:31,640 --> 00:13:36,360
the fundamentals but it doesn't.
So what do you, what do you

250
00:13:36,360 --> 00:13:39,640
think of this $200 million?
What's going to what's going to

251
00:13:39,640 --> 00:13:41,440
like impact is this going to
have in the spot market?

252
00:13:41,440 --> 00:13:42,560
I.
Mean just looking at what you

253
00:13:42,560 --> 00:13:45,040
can kind of buy with it is
interesting.

254
00:13:45,040 --> 00:13:47,560
Like you can get about two and a
half million pounds ish.

255
00:13:47,560 --> 00:13:51,400
Like we said before, they've got
a bit over 66 for for context.

256
00:13:51,400 --> 00:13:55,600
And if you look at 2024 in the
spot market, we saw a bit under

257
00:13:55,600 --> 00:13:58,160
£50 million trade.
Now this is the spot market

258
00:13:58,160 --> 00:14:00,560
again.
So this could be the same pounds

259
00:14:00,960 --> 00:14:04,200
gone back and forth a couple
times between various traders

260
00:14:04,640 --> 00:14:06,760
and and the like.
So it's, it's hard to get a, a

261
00:14:07,280 --> 00:14:10,040
grasp.
But yeah, we we saw the spot

262
00:14:10,040 --> 00:14:11,960
price jump up.
So it'll be interesting to see

263
00:14:11,960 --> 00:14:17,760
over what time horizon spot use
the cash and and invest it if we

264
00:14:17,760 --> 00:14:20,160
see sort of bigger volumes start
to go through.

265
00:14:20,600 --> 00:14:24,760
But yeah, like, like we sort of
said that that earlier time

266
00:14:24,760 --> 00:14:28,560
frame in 2023, the numbers we
gave to what pushed the spot

267
00:14:28,560 --> 00:14:32,880
price up quite dramatically.
Yeah, I'm sure that's what a lot

268
00:14:32,880 --> 00:14:34,760
of brokers were kind of pushed
to now and say, hey, look what

269
00:14:34,760 --> 00:14:36,440
happened last time, get on
board.

270
00:14:36,440 --> 00:14:37,680
Here's a good trading
opportunity.

271
00:14:37,680 --> 00:14:42,760
But I don't know how you can
with any real confidence wrap

272
00:14:42,760 --> 00:14:45,520
numbers around it.
Like, yeah, you've got a a

273
00:14:45,520 --> 00:14:50,040
buyer, a buyer who looks by all
accounts like they they will go

274
00:14:50,040 --> 00:14:53,120
and buy pounds.
But people that make predictions

275
00:14:53,120 --> 00:14:55,440
of it's going to be here by the
end of the year kind of.

276
00:14:56,120 --> 00:14:59,000
I scratched my head.
We what we saw are similar sort

277
00:14:59,000 --> 00:15:02,920
of thing play out like not all
that long ago, to be fair, Like

278
00:15:02,920 --> 00:15:08,040
Remember, Remember the start of
2024 and uranium was flying and

279
00:15:08,320 --> 00:15:12,360
you know, spot was buying pounds
and and then all of the hype

280
00:15:12,360 --> 00:15:15,480
kind of fizzled out over.
It's short term stuff, right?

281
00:15:15,520 --> 00:15:18,840
Well, that's because that's
because the real demand has

282
00:15:18,840 --> 00:15:20,400
taken longer.
Things take time, right?

283
00:15:20,560 --> 00:15:23,840
This is this is financial demand
that's yeah, moving, moving in

284
00:15:23,840 --> 00:15:28,640
the traded spot market that that
that gets the equities to

285
00:15:28,640 --> 00:15:30,960
respond pretty sharply.
And you know, people are making

286
00:15:30,960 --> 00:15:33,240
very handsome like profits out
of this trade.

287
00:15:33,760 --> 00:15:37,000
Is it is it a true reflection of
like future earnings growth?

288
00:15:37,400 --> 00:15:39,320
That's the question mark.
Yeah, Yeah.

289
00:15:39,320 --> 00:15:42,760
I mean, and you'd ask a sort of
person that makes the pitch

290
00:15:42,760 --> 00:15:46,840
saying look at what happened
last time, what happened after

291
00:15:47,560 --> 00:15:49,720
spots stopped by the pounds, it
just peeled off.

292
00:15:49,760 --> 00:15:52,920
So it depends what your time
horizon is when when you look at

293
00:15:52,920 --> 00:15:54,000
this.
And your point on the, the

294
00:15:54,040 --> 00:15:56,760
earnings potential of the
companies is really interesting

295
00:15:56,760 --> 00:16:00,440
because if you look at some of
the names in the ISX now and you

296
00:16:00,440 --> 00:16:05,360
try and back out a uranium price
and you use kind of middle of

297
00:16:05,360 --> 00:16:09,000
the, the, the sort of Rd.
numbers on mining assumptions

298
00:16:09,000 --> 00:16:12,720
and these sorts of things.
And you, you let the, the

299
00:16:12,720 --> 00:16:14,920
sensitivity be or the, the
variable that moves be the

300
00:16:14,920 --> 00:16:18,120
uranium price.
Like I feel like you're, you're

301
00:16:18,120 --> 00:16:21,760
getting a, a price backed out
that's well over 100 bucks.

302
00:16:22,160 --> 00:16:26,240
Like it's you, you look at the
market caps of some of these

303
00:16:26,240 --> 00:16:30,200
businesses and the mine lives
that they've produced and the

304
00:16:30,200 --> 00:16:32,440
mining costs that they've kind
of indicated to and all these

305
00:16:32,440 --> 00:16:34,680
sorts of things.
And you try and back solve like,

306
00:16:34,680 --> 00:16:37,360
yeah, you might have
expectations on them perhaps

307
00:16:37,680 --> 00:16:42,080
being able to extend the mine
life or find new pockets and

308
00:16:42,440 --> 00:16:44,360
yeah, at a higher grade and all
these sorts of things.

309
00:16:44,360 --> 00:16:48,480
But there still needs to be a
bit a bit of back solving to be

310
00:16:48,480 --> 00:16:51,960
done or you're just you.
Still use DCFS to value these

311
00:16:52,520 --> 00:16:54,920
companies, right you're living.
In the multiples multiples.

312
00:16:54,920 --> 00:16:57,720
You're living in the old world.
We don't need those things

313
00:16:57,720 --> 00:16:59,880
anymore.
They're ancient.

314
00:16:59,880 --> 00:17:02,760
Yeah no, I see what you mean.
And like, and that's the yeah

315
00:17:02,800 --> 00:17:04,640
the overarching question
especially like if if a lot of

316
00:17:04,640 --> 00:17:06,160
the price actually is different
by short squeeze.

317
00:17:06,160 --> 00:17:08,920
That's not, not a reflection of
fundamentals, although like, you

318
00:17:08,920 --> 00:17:14,720
know, yeah, we we get a second
hand that the the term pricing

319
00:17:14,720 --> 00:17:17,880
is, you know, is, is, is is
notching up like pretty steadily

320
00:17:18,720 --> 00:17:21,599
at a decent, decent tick.
So like that's the that's the

321
00:17:21,599 --> 00:17:24,040
reflection of of earnings growth
is that's what's.

322
00:17:24,040 --> 00:17:27,760
Turning to some term price.
But the yeah, this, this the at

323
00:17:28,240 --> 00:17:31,680
the end of the day, these
equities move to the tune spot.

324
00:17:32,840 --> 00:17:33,440
Yeah.
And spot.

325
00:17:33,640 --> 00:17:36,080
Spot is an influencing spot.
Yeah, if you're in it for the

326
00:17:36,080 --> 00:17:38,920
long term, keep a keep a good
eye on what those sort of term

327
00:17:39,440 --> 00:17:42,480
contract numbers.
You start to see anything kind

328
00:17:42,480 --> 00:17:45,640
of come out after the European
summer like we always hear,

329
00:17:45,640 --> 00:17:47,760
mate.
Which European summer this this

330
00:17:47,760 --> 00:17:49,800
one coming up, or the one before
that, or the one before that?

331
00:17:49,920 --> 00:17:55,080
I'll get too skeptical.
Yeah, OK mate.

332
00:17:55,320 --> 00:17:57,640
Well, talking about uranium has
got me thinking about how mines

333
00:17:57,640 --> 00:18:00,200
are powered, and most
importantly, how they should be

334
00:18:00,200 --> 00:18:02,960
powered.
So you're thinking about how

335
00:18:02,960 --> 00:18:06,560
mines are powered today and how
they might be powered in the

336
00:18:06,560 --> 00:18:09,240
future.
Maybe I am and every time I end

337
00:18:09,240 --> 00:18:11,480
up thinking about cross boundary
energy.

338
00:18:12,040 --> 00:18:13,760
Cross boundary energy.
OK, tell me why.

339
00:18:14,120 --> 00:18:16,720
They are the first name that
comes to mind when I think of de

340
00:18:16,720 --> 00:18:20,920
risk financing solutions.
JD Hybrid Power stations you can

341
00:18:20,960 --> 00:18:24,040
rely on solutions that can save
the miners cash.

342
00:18:24,280 --> 00:18:25,800
OK, mate, you, you've got me
interested.

343
00:18:25,920 --> 00:18:27,160
It's it's pretty amazing as
well.

344
00:18:27,160 --> 00:18:31,080
So not just power supply, we're
talking fully financed turnkey

345
00:18:31,080 --> 00:18:35,080
energy solutions.
Zero CapEx, JD, zero CapEx,

346
00:18:35,080 --> 00:18:38,360
cheaper OpEx, less stress while
you build your project.

347
00:18:38,800 --> 00:18:41,120
Where do I sign?
What about?

348
00:18:42,000 --> 00:18:43,560
What about?
Does it matter where my project

349
00:18:43,560 --> 00:18:44,760
is?
It does not matter.

350
00:18:44,760 --> 00:18:45,960
It doesn't matter.
It doesn't matter, mate.

351
00:18:45,960 --> 00:18:48,920
You could be in, you'd be in WA
if you if you wanted to, but you

352
00:18:48,920 --> 00:18:51,480
could also be in Madagascar, you
could be in Sierra Leone.

353
00:18:51,480 --> 00:18:54,680
It it truly does not matter.
Cross boundary energy will go

354
00:18:54,720 --> 00:18:58,160
anywhere, all right.
Mate I'm I'm on board if you are

355
00:18:58,160 --> 00:19:01,480
after a hybrid power station
that they risky project and

356
00:19:01,480 --> 00:19:03,400
saves you money.
Sounds like I should just call

357
00:19:03,400 --> 00:19:05,600
cross boundary energy.
Reliable, affordable, clean

358
00:19:05,600 --> 00:19:09,200
energy customized for your mind.
Go cross boundary energy all

359
00:19:09,200 --> 00:19:11,640
righty.
Be honest, New world resources.

360
00:19:11,640 --> 00:19:13,160
We've got to talk a bit about
these ones, mate.

361
00:19:13,160 --> 00:19:15,600
There's been some drama.
There has been indeed.

362
00:19:16,200 --> 00:19:18,240
I'm, I'm, I've been, I've been
getting in the weeds a little

363
00:19:18,240 --> 00:19:21,560
bit the last few minutes.
M and AI thought you might have

364
00:19:21,560 --> 00:19:25,240
been mate.
May 21st New World enters A

365
00:19:25,280 --> 00:19:29,960
scheme with Central Asian
Metals, who will also call CAML

366
00:19:30,440 --> 00:19:36,040
Now that came out with an
agreement for CMACAML Camel

367
00:19:36,280 --> 00:19:41,960
Camel Mighty Camel to buy New
World at $0.05 a share, giving

368
00:19:41,960 --> 00:19:44,960
them a a rough valuation at $185
million.

369
00:19:45,040 --> 00:19:48,160
I think that things like a 96%
premium to to last.

370
00:19:48,400 --> 00:19:49,840
They've been trading in the twos
before.

371
00:19:49,840 --> 00:19:53,160
That big, big, big, big premium,
Yeah, great, great outcome for

372
00:19:53,160 --> 00:19:56,600
New World shareholders.
And on top of that, New World's

373
00:19:56,680 --> 00:19:58,760
currently in a trading halt
right now.

374
00:19:59,000 --> 00:20:02,800
That trading halt references a
bump in consideration on its way

375
00:20:03,000 --> 00:20:05,520
for shareholders, those lucky
shareholders.

376
00:20:06,040 --> 00:20:08,360
But why the increase?
Wasn't it already a giant

377
00:20:08,360 --> 00:20:10,600
premium?
They are licking their lips,

378
00:20:10,600 --> 00:20:12,880
right.
So we see that announcement and

379
00:20:12,880 --> 00:20:15,680
then we see a change in
substantial come out, right

380
00:20:16,080 --> 00:20:19,040
Canterra Capital.
So these guys have emerged as a

381
00:20:19,040 --> 00:20:23,680
12% shareholder and they've paid
up at a bit over $0.05 a share

382
00:20:23,680 --> 00:20:24,880
on average.
They've been, yeah, they've

383
00:20:24,880 --> 00:20:27,320
bought in the high fours and you
can see that the highest price

384
00:20:27,320 --> 00:20:30,440
they've paid so far, 5.1 cents a
share.

385
00:20:30,560 --> 00:20:32,000
Yeah.
And and the quick one O 1 on

386
00:20:32,000 --> 00:20:35,520
Quintero, these are Canada based
private equity groups.

387
00:20:35,520 --> 00:20:38,720
So they've got a mandate for
critical minerals projects as

388
00:20:38,720 --> 00:20:41,320
well as kind of related
infrastructure.

389
00:20:41,600 --> 00:20:44,800
They previously actually wrapped
up Southwest Critical Minerals,

390
00:20:44,800 --> 00:20:48,240
and this one's particularly
interesting because they were

391
00:20:48,240 --> 00:20:51,640
the owners of the Pumpkin Hollow
project in Nevada as well,

392
00:20:51,640 --> 00:20:57,280
Copper project, US $128 million.
So it's a very similar style of

393
00:20:57,400 --> 00:21:00,520
project in a sense, you know?
I can try and piece together

394
00:21:00,520 --> 00:21:02,200
what, what's going on here and
what's happened.

395
00:21:02,200 --> 00:21:04,240
So Camel, Camel has a matching,
right.

396
00:21:04,360 --> 00:21:08,720
So if Quintera was buying stock
on on market all the way up to

397
00:21:08,720 --> 00:21:13,760
5.1 cents, then maybe Quintera's
prepared to, to lob a, a bid for

398
00:21:13,760 --> 00:21:17,480
100% of, of New World themselves
for say call it 5.2 cents or

399
00:21:17,480 --> 00:21:19,680
higher.
You can't make a takeover offer

400
00:21:19,840 --> 00:21:23,000
at a lower price than you've
bought shares in the last four

401
00:21:23,000 --> 00:21:24,240
months.
So you know when the offer is

402
00:21:24,240 --> 00:21:27,000
going to be, you know, north of
north of that last price they've

403
00:21:27,000 --> 00:21:30,040
paid.
And Camel, they've signed this

404
00:21:30,040 --> 00:21:32,760
scheme implementation deed with
that matching right now.

405
00:21:32,760 --> 00:21:35,920
I don't actually think Quintero
has submitted a bid yet.

406
00:21:35,960 --> 00:21:41,160
I, I think the flagged increase
in consideration from camel is

407
00:21:41,160 --> 00:21:43,600
actually just pre emptive.
They're, they're trying to, you

408
00:21:43,600 --> 00:21:46,400
know, get on top of this before
they, before there's actually a

409
00:21:46,600 --> 00:21:49,000
competing bid in place.
But this is, this is still

410
00:21:49,000 --> 00:21:51,680
awesome.
You know, there's live bidding

411
00:21:51,680 --> 00:21:55,000
effectively happening out here
in the open, all to the benefit

412
00:21:55,240 --> 00:21:59,880
of the New World shareholders.
That 12% stake to Quintera right

413
00:21:59,880 --> 00:22:02,720
now is very strategic.
I hear that they're trying to

414
00:22:02,720 --> 00:22:08,680
get their hands on 19.9% and the
fact that Quintera is freely

415
00:22:08,680 --> 00:22:13,000
buying shares on market here
tells me a very important piece

416
00:22:13,000 --> 00:22:14,080
of information.
JD.

417
00:22:14,360 --> 00:22:16,960
What's that mate?
I want to draw your attention

418
00:22:16,960 --> 00:22:20,920
first to this this quote in the
New World announcement, the day

419
00:22:20,920 --> 00:22:23,880
the deal with Camel was
announced, it says the Board of

420
00:22:23,880 --> 00:22:25,800
New World has entered into this
transaction following the

421
00:22:25,800 --> 00:22:28,080
completion of a highly
competitive financing and

422
00:22:28,080 --> 00:22:30,400
strategic partnering process
during which the company

423
00:22:30,400 --> 00:22:32,640
attracted strong interest from
multiple Tier 1 counterparties,

424
00:22:32,640 --> 00:22:34,720
including precious metal
streamers, specialist mine

425
00:22:34,720 --> 00:22:36,280
financiers and strategic
partners.

426
00:22:36,560 --> 00:22:39,640
Notwithstanding the compelling
proposals received as part of

427
00:22:39,640 --> 00:22:42,680
that process, the Board, in
consultation with its advisers

428
00:22:42,680 --> 00:22:45,360
carefully assessed the
valuation, funding, timing and

429
00:22:45,360 --> 00:22:49,480
execution certainty of the
transaction compared with all

430
00:22:49,640 --> 00:22:53,720
available alternatives.
Now that there tells me two

431
00:22:53,720 --> 00:22:55,600
things.
One, a process has clearly been

432
00:22:55,600 --> 00:22:59,600
run. 2, the word from that
wording, I get the impression

433
00:23:00,000 --> 00:23:03,200
the bid from Camel wasn't the
highest bid in that process.

434
00:23:03,520 --> 00:23:05,000
They're they're saying they
weighed up all of these

435
00:23:05,000 --> 00:23:06,680
different things.
So to me, it comes across as the

436
00:23:06,680 --> 00:23:10,520
most certain, like the most
execution certainty, but I don't

437
00:23:10,520 --> 00:23:12,560
think it was the highest price
that they received.

438
00:23:13,120 --> 00:23:16,320
And, and so now, now we know
that New World ran a competitive

439
00:23:16,320 --> 00:23:19,040
process because they, they tell,
they tell that, well, when you

440
00:23:19,040 --> 00:23:22,040
run a process, what you do is
you have the participants in

441
00:23:22,040 --> 00:23:24,480
that process that want access to
your data room, They've got to

442
00:23:24,480 --> 00:23:26,840
sign a confidentiality agreement
or ACA.

443
00:23:27,480 --> 00:23:31,080
Those CAS include customary
standstill agreements.

444
00:23:31,080 --> 00:23:33,960
If you're a public company and
the standstill agreement

445
00:23:34,160 --> 00:23:37,720
prevents the, you know, the the
participant from buying any

446
00:23:37,720 --> 00:23:42,400
stock in New World on market for
a period of time, you know, call

447
00:23:42,400 --> 00:23:45,920
it 12 to 24 months is is kind of
standard, but you, you know that

448
00:23:45,960 --> 00:23:47,400
buy any more shares, it stands
still.

449
00:23:47,400 --> 00:23:49,480
You're stuck at whatever you're
on at that point in time.

450
00:23:50,280 --> 00:23:53,720
And you can see in the scheme
implementation date that Camel

451
00:23:54,000 --> 00:23:56,560
executed that was signed on the
20th of December.

452
00:23:56,640 --> 00:24:00,600
So that process is being run CA
sign 20th of December.

453
00:24:00,600 --> 00:24:03,600
It's a Christmas present.
Nasty DD over the Christmas

454
00:24:03,600 --> 00:24:07,200
period, but but OK, so, so this,
you know, that's, that's when

455
00:24:07,200 --> 00:24:08,480
the strategic process is being
run.

456
00:24:08,480 --> 00:24:11,080
We can introduce that.
So if Quintero is freely buying

457
00:24:11,080 --> 00:24:15,880
stock on market, what that tells
me is that they weren't a part

458
00:24:15,880 --> 00:24:18,840
of that formal process.
They didn't sign ACA.

459
00:24:19,440 --> 00:24:21,560
Importantly, there's no
standstill preventing them from

460
00:24:21,560 --> 00:24:23,320
buying stock right now.
They're buying stock without

461
00:24:23,320 --> 00:24:25,960
having done due diligence.
They haven't been in the data

462
00:24:25,960 --> 00:24:27,760
room.
They're coming in hot.

463
00:24:28,000 --> 00:24:31,360
This is a This is a rare sight.
That's that's pretty

464
00:24:31,360 --> 00:24:34,200
fascinating.
And we know that they they're a

465
00:24:34,200 --> 00:24:38,840
relatively recent PE group and
the second fund hadn't even been

466
00:24:38,840 --> 00:24:40,640
finalized yet.
Obviously that they had their

467
00:24:40,640 --> 00:24:44,760
first fund which was finalized
late 23, but they hadn't put the

468
00:24:44,760 --> 00:24:48,640
final touches on fund 2, which
is what they have bought the

469
00:24:48,640 --> 00:24:51,440
stock in at that date yet
either.

470
00:24:51,440 --> 00:24:53,200
So it's.
So interesting, right?

471
00:24:53,200 --> 00:24:55,440
Like you've got, I mean,
they're, they're, they're

472
00:24:55,440 --> 00:24:59,720
prepared to write this cheque
well, for at least 2019.9% not

473
00:24:59,720 --> 00:25:01,800
having done, not having had
access to the data.

474
00:25:01,800 --> 00:25:03,800
And maybe they've got synergies.
And so that's letting them kind

475
00:25:03,800 --> 00:25:06,360
of bid up confidently on the
publicly available information.

476
00:25:06,360 --> 00:25:10,720
But, and already you're getting
the, the camel kind of just

477
00:25:10,720 --> 00:25:12,960
lifting consideration in
preparation to be like, hey,

478
00:25:13,080 --> 00:25:15,600
hey, we're gonna wait.
This is ours, not yours.

479
00:25:15,600 --> 00:25:17,720
Go away.
So I, I just, I hope it gets

480
00:25:17,720 --> 00:25:18,840
juicy.
I hope it gets interesting.

481
00:25:18,840 --> 00:25:21,200
I hope shareholders just have a
have a tremendous win here

482
00:25:22,080 --> 00:25:24,560
because yeah, that like that's
this stuff just gets gets

483
00:25:24,560 --> 00:25:25,880
excited.
It's awesome, Yeah.

484
00:25:25,880 --> 00:25:29,160
I think there's more to be kind
of said, maybe even like a whole

485
00:25:29,160 --> 00:25:30,920
episode needs to be had on
mining private equity.

486
00:25:30,920 --> 00:25:35,240
I know we've sort of spoken
about it a bunch, but yeah, not

487
00:25:35,240 --> 00:25:37,080
totally convinced it's the right
approach.

488
00:25:37,080 --> 00:25:40,880
But we see, we, we do keep
seeing a lot of these funds pop

489
00:25:40,880 --> 00:25:43,800
up, particularly like North
American oriented because the

490
00:25:43,800 --> 00:25:47,480
endowments and stuff understand
private equity, not mining, but

491
00:25:47,480 --> 00:25:49,280
they understand private equity
and it's something they can

492
00:25:49,280 --> 00:25:52,800
allocate to.
So, yeah, these guys, like I

493
00:25:52,800 --> 00:25:54,920
said, just wrapped up another US
$1 billion.

494
00:25:54,920 --> 00:25:59,440
They they came from another
mining private equity Canadian

495
00:25:59,520 --> 00:26:02,400
group as well and started this
just recently.

496
00:26:02,680 --> 00:26:05,880
So yeah, there's something more
to be said there, as well as the

497
00:26:05,880 --> 00:26:09,760
fact that the copper names are
just disappearing off the ASX.

498
00:26:09,960 --> 00:26:13,000
The juniors in particular, yeah.
There's not that many seniors

499
00:26:13,080 --> 00:26:15,280
either.
So yeah, Black Underbeard

500
00:26:16,120 --> 00:26:19,080
Xanadu, who we've spoken about
recently, New world here.

501
00:26:21,040 --> 00:26:23,640
This breaks last year.
We a bunch of them.

502
00:26:23,640 --> 00:26:26,960
It's.
And yet the the there's there's

503
00:26:26,960 --> 00:26:28,960
new entrants coming on too.
I don't know if you've noticed

504
00:26:28,960 --> 00:26:30,240
it.
Marry Marker debuted.

505
00:26:30,480 --> 00:26:30,960
Yeah.
And.

506
00:26:31,120 --> 00:26:34,280
They they did a raising too and
obviously we saw capstone coming

507
00:26:34,520 --> 00:26:36,280
list a bit down here.
Well marry marker might be

508
00:26:36,280 --> 00:26:39,160
disappearing soon too.
See, I think it's attack over

509
00:26:39,160 --> 00:26:42,400
targets.
Yeah, I think there's a a bit to

510
00:26:42,400 --> 00:26:43,840
be seen there.
Yeah.

511
00:26:44,120 --> 00:26:46,520
All right, mate.
Underground mining commodities

512
00:26:46,520 --> 00:26:50,360
like copper, zinc, silver, all
vital for our future.

513
00:26:51,120 --> 00:26:53,920
That's the type of project in
this case at New World that is

514
00:26:54,000 --> 00:26:56,000
only made possible by ground
support.

515
00:26:56,240 --> 00:27:00,120
And when I think ground support,
I think Sandvik ground support.

516
00:27:00,680 --> 00:27:03,360
And I want to share some more
wise words from the man who has

517
00:27:03,680 --> 00:27:06,520
LED Sandvik ground support in
nearly 20 years.

518
00:27:06,520 --> 00:27:09,240
Here is Derek heard money miners
had.

519
00:27:09,320 --> 00:27:12,920
Four years in Mount Isa with
work, it was that company called

520
00:27:12,920 --> 00:27:16,280
A and I back then I started as
the R&D engineer, yeah, back

521
00:27:16,280 --> 00:27:18,080
then.
This is what ultimately became

522
00:27:18,320 --> 00:27:19,720
Sandy Ground Support.
Yeah, correct.

523
00:27:19,720 --> 00:27:23,080
So, yeah, the A and I business
got bought by the DSI business

524
00:27:23,080 --> 00:27:26,240
and the that that time the DSI
business was Divvy DAG and

525
00:27:26,560 --> 00:27:28,880
that's DVDAC Systems
International.

526
00:27:28,880 --> 00:27:30,600
That's what the DSI.
Yeah, exactly What a.

527
00:27:30,800 --> 00:27:32,360
Name.
So DSI actually goes back to

528
00:27:32,360 --> 00:27:36,000
like the the mid 1800s, yeah.
Absolutely back.

529
00:27:36,000 --> 00:27:38,440
In German firm as well.
Exactly strong lineage.

530
00:27:38,960 --> 00:27:42,600
Yeah, so like 1865 I think it.
Was and so you studied

531
00:27:42,920 --> 00:27:44,920
engineering and mechanical
engineering before.

532
00:27:45,120 --> 00:27:47,400
Correct.
So I'm a mechanical engineer, so

533
00:27:47,400 --> 00:27:51,320
through Newcastle University,
but pretty quickly realized

534
00:27:52,160 --> 00:27:55,280
there's not too many people that
stay true engineers and went off

535
00:27:55,280 --> 00:27:56,600
and did a business degree as
well.

536
00:27:56,800 --> 00:28:00,200
So I had a career through the
business that started as an RNA

537
00:28:00,200 --> 00:28:03,800
engineer, moved into a sales
role and then sort of a bigger

538
00:28:03,800 --> 00:28:06,560
sales role and went to Mount Isa
and lived up there for four

539
00:28:06,560 --> 00:28:08,960
years and managed that region.
And then came back and started

540
00:28:08,960 --> 00:28:12,240
managing the export business and
then sort of the national

541
00:28:12,240 --> 00:28:15,400
business, then became sort of
what they called a business unit

542
00:28:15,400 --> 00:28:17,680
manager and then progressed into
the CEO role.

543
00:28:17,760 --> 00:28:20,640
Go Sandvik grant support.
All right mate.

544
00:28:20,800 --> 00:28:25,080
Last bit of last bit of chatter
for today.

545
00:28:25,080 --> 00:28:27,160
This is an interesting one.
Tell me, Cat.

546
00:28:27,440 --> 00:28:28,800
Tell me.
Tell me what you tell me what

547
00:28:28,800 --> 00:28:31,800
you uncovered.
So black cat have come up with

548
00:28:31,800 --> 00:28:35,360
these strategy names in past and
they crack me up.

549
00:28:35,360 --> 00:28:38,920
I I love them no knock on them
they're they're hilarious, but

550
00:28:38,920 --> 00:28:41,880
they are, you know, to the point
they get your attention.

551
00:28:41,880 --> 00:28:45,800
So the previous one they had was
all gold sooner.

552
00:28:46,440 --> 00:28:48,600
It's effective, you know,
there's no confusion about it.

553
00:28:48,600 --> 00:28:51,440
You know what they want, but
they came out with an

554
00:28:51,440 --> 00:28:54,080
announcement earlier this week
and they've added to it.

555
00:28:54,360 --> 00:29:00,720
So more gold sooner to be held
longer is the new strategy name.

556
00:29:00,720 --> 00:29:04,160
And I don't think you need a
marketing professional to tell

557
00:29:04,160 --> 00:29:06,920
you that doesn't roll off the
tongue as perhaps easy as it

558
00:29:07,200 --> 00:29:09,400
could have, but.
That's no, no man, I reckon you

559
00:29:09,400 --> 00:29:12,360
couldn't have asked that deputy
for a more succinct like like

560
00:29:12,400 --> 00:29:15,360
more goals to be held long.
I get your strategy in six

561
00:29:15,360 --> 00:29:16,520
words.
Like, yeah, that's it.

562
00:29:16,520 --> 00:29:18,680
They vowed it.
Don't have to read it as little

563
00:29:18,680 --> 00:29:20,840
words as possible.
So credit to them for that.

564
00:29:20,840 --> 00:29:24,240
And we're talking about it.
We're talking about it because

565
00:29:24,320 --> 00:29:27,680
the strategy itself is
interesting, so.

566
00:29:27,760 --> 00:29:31,360
What are they doing?
Goldie's wanting to hold more of

567
00:29:31,360 --> 00:29:36,920
their liquid assets in the form
of gold bullion as opposed to

568
00:29:36,920 --> 00:29:38,520
cash and.
That's what Blackout's saying.

569
00:29:38,520 --> 00:29:40,120
They're they're they're came to,
Yeah.

570
00:29:40,440 --> 00:29:43,040
And they've already got $24
million worth of bullion.

571
00:29:43,280 --> 00:29:44,320
Yeah.
They want to keep as much

572
00:29:44,360 --> 00:29:46,720
bullion as as possible and only
sell what they need to.

573
00:29:46,760 --> 00:29:48,200
Yeah.
And in their case, they've sort

574
00:29:48,200 --> 00:29:52,680
of given it a, a buffer like a a
#20 million equivalent.

575
00:29:52,680 --> 00:29:54,440
But I think it's worth
discussing.

576
00:29:54,440 --> 00:29:57,240
I think it's a really
interesting strategy that that

577
00:29:57,240 --> 00:30:00,400
they're doing and there's a few
different features of it that

578
00:30:00,400 --> 00:30:03,120
need to be discussed, right.
So there's something to be said

579
00:30:03,120 --> 00:30:10,040
for the taps tax implications of
this because gold, when you're a

580
00:30:10,040 --> 00:30:14,800
gold miner that you haven't yet
sold is unrealized revenue,

581
00:30:15,000 --> 00:30:16,960
right?
Yeah, yeah, yeah.

582
00:30:17,120 --> 00:30:19,760
In many jurisdictions, income
tax is only triggered when the

583
00:30:19,760 --> 00:30:22,240
revenue is realized.
In Australia, that unsold gold

584
00:30:22,400 --> 00:30:25,480
is inventory, not not revenue on
your balance sheet.

585
00:30:25,480 --> 00:30:29,560
Therefore, no assessable income
is is recognized until that sale

586
00:30:29,560 --> 00:30:33,120
actually occurs, which means a
natural deferral of your Income

587
00:30:33,120 --> 00:30:35,280
Tax Act that has an impact on
your on your cash flow.

588
00:30:36,080 --> 00:30:39,440
Metrics as well.
So the gold that stays on the

589
00:30:39,440 --> 00:30:43,320
minus balance sheet, here's a
bit of a catch though.

590
00:30:43,680 --> 00:30:47,640
It'll be valued typically at the
at the lower of cost price and

591
00:30:47,680 --> 00:30:50,760
market value.
And because the, the market

592
00:30:50,760 --> 00:30:54,600
value of gold typically tends to
go up over time, in reality,

593
00:30:54,600 --> 00:30:57,000
it's it's held on your balance
sheet at cost price.

594
00:30:57,760 --> 00:31:01,480
And so in a rising gold market
like these miners that choose to

595
00:31:01,480 --> 00:31:04,880
do this from time to time, they
will avoid recognizing a, a

596
00:31:04,880 --> 00:31:07,080
high, a high book profit on
that.

597
00:31:07,080 --> 00:31:09,320
They just keep keep it on their
balance sheet of cost.

598
00:31:10,400 --> 00:31:12,280
One for the accountants out
there.

599
00:31:13,080 --> 00:31:16,040
I don't mind it though.
Like I don't mind the strategy.

600
00:31:16,120 --> 00:31:17,760
I don't, I don't mind it at all,
right.

601
00:31:17,760 --> 00:31:22,800
I, I think if you're of the
philosophy that that gold is

602
00:31:22,800 --> 00:31:26,520
money, which clearly a lot of
your investor base will be kind

603
00:31:26,520 --> 00:31:29,560
of partial to given you're
investing in a gold mining

604
00:31:29,560 --> 00:31:31,640
company.
And I think it's too much of A

605
00:31:31,640 --> 00:31:35,800
stretch to, to think that then
it, it makes perfect sense.

606
00:31:35,800 --> 00:31:39,160
It's kind of interesting yet,
yet your market in, in dollars,

607
00:31:39,160 --> 00:31:41,320
but you kind of got a market in
something right.

608
00:31:41,680 --> 00:31:47,000
But I it, it, it makes total
sense if if you are wanting to

609
00:31:47,000 --> 00:31:50,120
compete against inflation and
all these sorts of things.

610
00:31:51,000 --> 00:31:52,960
I kind of like it.
The market would hate you for

611
00:31:52,960 --> 00:31:56,200
just like accrue like building
up cash only on your balance

612
00:31:56,200 --> 00:31:59,720
sheet and having no plans to to
distribute that to shareholders

613
00:31:59,720 --> 00:32:02,960
or no way to reinvest it or
organically.

614
00:32:02,960 --> 00:32:05,520
Like, I do think, you know, the
market would prefer to see

615
00:32:05,760 --> 00:32:10,960
reinvestment for growth with the
proceeds of the profits of a

616
00:32:10,960 --> 00:32:14,200
Gold Bond for sure, or or
distributions to shareholders

617
00:32:14,200 --> 00:32:16,320
for sure.
But you've got something

618
00:32:16,320 --> 00:32:19,200
leftover at the end of that and
you decide to keep it in gold or

619
00:32:19,400 --> 00:32:21,040
you've got your available
liquidity in gold.

620
00:32:21,200 --> 00:32:22,920
I don't hate it.
I don't think the market is

621
00:32:22,920 --> 00:32:25,800
going to love it or value it in
general, though.

622
00:32:26,000 --> 00:32:29,440
And there's a couple of like,
there's one big precedent I can

623
00:32:29,600 --> 00:32:32,160
point to that it's a very
peculiar case and maybe not the

624
00:32:32,160 --> 00:32:35,520
best precedent to talk about.
JD, please, you know, do you

625
00:32:35,520 --> 00:32:36,840
know who I'm talking about?
I do.

626
00:32:39,840 --> 00:32:43,200
One of our favorite companies.
Yeah, it's, it's actually two

627
00:32:43,200 --> 00:32:47,960
companies Tribune and Rand.
So these are the JV partners E

628
00:32:47,960 --> 00:32:51,320
Kendana joint venture to, to
Evolution mining previously was

629
00:32:51,320 --> 00:32:52,960
it was Northern star of the JV
partners.

630
00:32:53,200 --> 00:32:56,400
Now, now Tribune if you look at
their books, they equity account

631
00:32:56,720 --> 00:32:59,000
Rand.
So all you've got to look at is

632
00:32:59,000 --> 00:33:04,080
the inventories on the balance
sheet of of of Tribune as it's

633
00:33:04,080 --> 00:33:09,720
31 December in their accounts.
You can you can see gold on hand

634
00:33:10,440 --> 00:33:17,120
at cost 177 million of gold
bullion, but it's valued at cost

635
00:33:17,200 --> 00:33:22,160
JD and neither Tribune nor Rand
will tell you anywhere how many

636
00:33:22,280 --> 00:33:26,080
ounces they actually have
bullion.

637
00:33:26,080 --> 00:33:28,480
You you're just left with that
number trying to figure it out.

638
00:33:28,480 --> 00:33:30,280
But if you do your homework and
Perth.

639
00:33:30,280 --> 00:33:32,680
Means it's just their fault.
Mate, if you.

640
00:33:33,600 --> 00:33:36,360
If you can't trust it.
I haven't done this homework

641
00:33:36,360 --> 00:33:38,880
myself, but I trust the people
that that did do this homework.

642
00:33:39,720 --> 00:33:43,560
Go through the history and you
can deduce what's been produced

643
00:33:43,560 --> 00:33:45,960
and what's been sold over time
and you can back out.

644
00:33:46,640 --> 00:33:49,320
The Tribune and Rand
collectively have about 130,000

645
00:33:49,320 --> 00:33:55,120
ounces of gold in the accounts.
At the Perth Mint, 130,000

646
00:33:55,120 --> 00:33:58,520
ounces of gold, while it might
be be valued on the books at

647
00:33:58,520 --> 00:34:05,120
$177 million, is actually worth
$680 million a current process.

648
00:34:05,120 --> 00:34:09,080
That's a staggering amount of of
bullion and I I'm pretty sure

649
00:34:09,080 --> 00:34:12,600
that that this is the single
largest account of gold on hand

650
00:34:12,600 --> 00:34:14,639
at the Perth Mint.
Crazy.

651
00:34:14,639 --> 00:34:19,520
And what gets weirder, mate, if
you just add the market caps of

652
00:34:19,520 --> 00:34:24,560
Rand and Tribune together,
you'll get $370 million.

653
00:34:24,560 --> 00:34:28,440
Now that is, that's like half
the value of the, the gold alone

654
00:34:28,440 --> 00:34:32,080
that they have on hand, not
least of which they still

655
00:34:32,360 --> 00:34:35,000
clearly have an, an economic
interest in a joint venture that

656
00:34:35,000 --> 00:34:37,560
is still producing a lot more
gold that should be worth a fair

657
00:34:37,560 --> 00:34:39,760
bit of money.
So this is like as negative EV

658
00:34:40,440 --> 00:34:44,280
as they get.
Granted, you can't quite figure

659
00:34:44,280 --> 00:34:47,239
out when you're going to get
paid here because because

660
00:34:47,239 --> 00:34:50,120
there's, you know, kind of a, a
complicating share shareholder

661
00:34:50,120 --> 00:34:53,199
dynamic and structure and a few
obstacles in the way to A, to A,

662
00:34:53,199 --> 00:34:54,560
to an outcome if you were an
activist.

663
00:34:55,000 --> 00:34:56,760
One or two.
One or two, One or two.

664
00:34:56,760 --> 00:35:00,600
Fascinating example nonetheless,
but really it's a ballsy

665
00:35:00,600 --> 00:35:02,640
strategy.
Kind of admire the strategy to

666
00:35:03,120 --> 00:35:06,200
to do it and to not really give
a crap about what people think

667
00:35:06,200 --> 00:35:10,280
and just just a cream like gold.
I hope the Mint still has that

668
00:35:10,280 --> 00:35:11,400
gold.
Yeah, I'd, I'd probably

669
00:35:11,400 --> 00:35:15,600
diversify the mints that I hold
the the the bars with it's a

670
00:35:15,600 --> 00:35:16,480
lot.
Of faith in the Mint.

671
00:35:16,840 --> 00:35:19,960
Is a tremendous amount of faith
in the in the Perth Mint.

672
00:35:19,960 --> 00:35:23,640
So, yeah, I, I think it's really
interesting if we go back to the

673
00:35:23,640 --> 00:35:27,640
the strategy again, looking at
like parallels, we've seen this

674
00:35:27,640 --> 00:35:30,880
in uranium, but it's kind of
weird.

675
00:35:30,880 --> 00:35:32,840
Like you don't see it in any
other and it just wouldn't

676
00:35:32,840 --> 00:35:35,920
really be OK in any other
commodities.

677
00:35:35,920 --> 00:35:38,560
So yeah.
Why is that?

678
00:35:40,280 --> 00:35:42,760
It's because it's because like
obviously the dollar is clearly.

679
00:35:43,240 --> 00:35:45,280
Yeah, and.
The value that arose over time

680
00:35:45,280 --> 00:35:48,880
and gold is seen as like a a
clear and proven way of

681
00:35:49,200 --> 00:35:51,040
circumnavigating that, whereas
other commodities aren't as

682
00:35:51,040 --> 00:35:52,040
inflation resistant.
Yeah.

683
00:35:52,040 --> 00:35:53,880
I mean, a lot of people point to
commodities being the good

684
00:35:53,960 --> 00:35:57,760
inflation hedge, but not all
commodities are equal, right?

685
00:35:57,760 --> 00:36:01,040
So yeah, it wouldn't be chuffed
if like a zinc producer is going

686
00:36:01,040 --> 00:36:04,960
to start doing this, but gold,
maybe it's OK given the many

687
00:36:04,960 --> 00:36:07,400
thousand year track record.
So yeah, I think they could have

688
00:36:07,600 --> 00:36:10,560
put a slightly better chart than
just going back 20 years to to

689
00:36:10,560 --> 00:36:14,400
prove their point.
But I think the the strategy is

690
00:36:14,400 --> 00:36:16,400
interesting nevertheless and I
don't mind it.

691
00:36:16,400 --> 00:36:18,840
What?
Do you think money minus let us

692
00:36:18,840 --> 00:36:22,760
know Ford gold or what cash or
none of you above.

693
00:36:22,920 --> 00:36:25,000
Or what else?
All righty mate.

694
00:36:25,280 --> 00:36:28,160
Let's thank our wicked partners
for today's episode.

695
00:36:28,160 --> 00:36:30,360
Mineral Mining Services,
Grounded Sand, Vic Ground

696
00:36:30,360 --> 00:36:33,800
Support, Adriel and Boss
Boundary Energy, Buduru.

697
00:36:34,040 --> 00:36:38,400
Buduru.
Now remember, I'm an idiot.

698
00:36:38,680 --> 00:36:41,120
JD is an idiot.
If you thought any of this was

699
00:36:41,120 --> 00:36:43,640
anything other than
entertainment, you're an idiot

700
00:36:44,000 --> 00:36:45,200
and you need to read out a
disclaimer.