We unpack 2 North American Deals

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Alright, buddy, borders, we're
going to bloody North America,

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Canada, we've.
Got 2 fields in North Korea.

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Today, Oh yeah, go go the Maple
syrup.

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Today, we're on fire.
That's it.

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I'd pancakes on the weekend too
it.

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Was.
I did too.

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There you go.
Oh.

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Well, there we go.
Alright, so big deal coming out

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of bloody Newmont divesting one
of their non core assets to a

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company I've never heard of, but
we'll know sheet loads of out of

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them today after today.
Ola, Ola Mining Ola, they've got

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a bit of a brand reputation out
in North America.

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They've got a bit of a
management premium associated

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with the money.
They're well, they're they're

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obviously not big enough to buy
all the new Mons non core

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assets.
They've just bought one of them

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Ahead.
We've got Spartan met results.

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Why not go into a bit of
metallurgy and Sayona Piedmont?

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That's it walking down the
aisle.

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Take it away, boys.
We'll start with Ola like you

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said, Maddie scooping up an
asset muscle white from Newmont.

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So up in up in North America
headline was up to an $850

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million U.S. dollar deal 800 and
few 810 rather being upfront

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with 40 contingents.
So everyone knows Newmont, but

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why not share a bit of colour on
all?

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I think to our North American
audience, like you say, Trev

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might be quite familiar, but
down under they're a bit of an

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unknown entities.
So they've got a producing

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asset, the Camino Rojo mine in
Mexico and a development asset

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in the States, currently just
producing about 135 oz per

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annum.
Market cap 1.9 billion, actually

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bounced a bit on this deal.
So the market kind of liked it.

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And like you say again, Trev,
supported by the market, bit of

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a premium in terms of
shareholders, peerless on about

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10% of the company personally.
Then you've got Fairfax, not the

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Aussie Media Group.
Thank you for answering my

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question I was about to ask.
You also got Newmont as big

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shareholders and Agnico and then
there's they're all pretty

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chunky shareholders and then
there's a sort of trailing list

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of single digit percentage.
That's a that's an attractive

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list of shareholders to have,
which you imagine kind of, yeah,

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it gives them a bit of firepower
when, when it comes to wanting

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to do a deal.
Not that they raised equity

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here, but yeah, nonetheless.
Definitely mate and the last fun

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fact about Orla is that their
non exec chair Chuck jeans.

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He ran Goldcorp from 2009 to
2016 so he would be quite

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familiar.
That's a period in which

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Goldcorp was the owners of the
Muscle White mine.

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So, so tell us about the muscle
white mine.

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What are the metrics?
The metrics, so Canadian

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Underground goldmine 6 point 2-3
grammes per tonne reserve grade.

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The acquisition is based upon a
reserve life that runs out to

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2030.
They're talking about an all in

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sustaining cost of a bit under
US 1300.

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So 1270 is the the price that
sort of quote there 200,000 oz

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per annum.
In terms of the the processing

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plant, maybe 1.5 million tonnes
per annum, although it currently

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only runs at 1,000,000 tonnes
per annum and decent recoveries,

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not unexpected given the, the
high grade we're talking about

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96% historically is what they
talk up.

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It's also a FIFO operated mine,
which is interesting in lot of

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comments you've made previously
with regards to mining towns

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having sort of somewhat
different cultures about how

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long they want the the mine to
you know operate for and they

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these sorts of things.
So it kind of it stands out

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culturally as quite a a positive
type operation where you're not

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maybe entrenched with unions and
other type of things like that.

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Are they?
So is it firefighters in as in

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expats or is it firefighter for
Canada and America?

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Canada, Canada and US.
Yeah, I'd imagine the majority

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just fly from other Canadian
cities.

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Yeah, I did.
I I I was watching one of the

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videos regarding the firefighter
on the camp aspect to Australia.

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We're in the process of doing a
camp upgrade right now.

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Sounds like that camp upgrade
needs to be a bloody grounded

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camp upgrade, boys.
The only way to go.

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He's a no brainer right If
you've got an old shit ass camp

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like I don't know if muscle ward
have got mate if grounded do the

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upgrade.
It's then considered a grounded

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camp.
One of the best camps beyond a

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Newmont standard.
You can't acquire, you know, an

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asset from a major like new
Modern.

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They're not not give it a Tier 1
camp.

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No, mate, you got to put a bit
of love into it.

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You got to put a bit of a
Sicilian feel into the into the

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camp.
And look, Paul Natali, if you're

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listening mate, I've done a bit
of digging for you in terms of

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Ontario builder recruitment if
you do get.

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This gig, what did you?
Find as of 2021 Canadian census,

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approximately 905,000
individuals in Ontario reported

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Italian ancestry.
So about 6 1/2 percent of the

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population.
And then of that there is

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estimated 10% of them are from
the southern regions of Italy,

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notably Sicily.
So there is potentially 90,000

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Sicilians in Ontario right now.
The grounded construction group

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could pick from to help build
this camp.

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So anyone in Ontario that's just
finished their building

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apprenticeship, give Paul
Natalie an email.

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He's in the show.
It'll give you a gig straight

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away.
Grounded to go on International.

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Grounded straight, Ontario.
Get on board.

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Can't wait, right?
So what about the ore body, JD?

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So the ore is mined from a
couple main sources.

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The ore the the mine rather is,
is pretty old now 28 years.

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So it's been going a while.
Obviously you're getting a bit

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deeper and deeper, like a lot of
these in Canada sits under a

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lake, uses a conveyor to get the
order surface, which is the the

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the cause of a fire in 2019.
That sort of happened early

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2019, which was the same year
that Newmont took over Gold

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Corp.
That was a sort of $10 billion

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script deal.
So came into the the fold with

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Newmont, but the the mine was
out of action for about a year

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and then it was actually
disrupted quite a bit in 2020

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due to COVID restrictions as
well.

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So yeah, the company talks up
that they use that time to work

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on other improvements, improve
the infrastructure at the site.

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But yeah, what was out of action
for a little while there, but

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6,000,000 oz been mined here
over its history, 1.5 million

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ounces in reserve.
So I got a bit to bit to work

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with.
It's funny when you talk about

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the reserves and yeah, yeah,
look at this one like it's

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actually not that deep.
Looking at they'll bring up the

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cross section, the long section
of the ore body like it's what

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friggin.
Not steeply dipping at all.

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What is a bit about 12-13
hundred, I think.

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Oh, no, sorry, that's, that's
not a it's only mine down to

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about 1000.
But you look at that plunge,

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that's what we refer to as the
plunge.

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Like it's freaking flat.
Like if you put it, compare it

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to, I'll show you the picture of
Tanamoi.

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Like Tanamoi plunges at about
45°.

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This one plunges at like 30.
So it presents a massive

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challenge for determining your
reserves because what happens is

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as when your decline gets down
to a certain point and the the

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all bodies plunging away from
you.

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I'll try to keep your hands
close so the camera remains

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focused.
It's not going in and out when

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it plunges away.
You can't just fucking drill

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over there and get a good angle
on the ore body to properly

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define it.
They're long and they're

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intersecting at a freaking
shitty angle.

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It's part of the reason it's
always had a sort of six year,

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seven year, yeah.
Which is 6-7 years and that's

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probably a function.
Of course it's plunging.

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So much like the, the, the gold
or per vertical metre is a lot

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higher, like 'cause it's like
your body's gone that way

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instead of that way.
So what, So what they've got,

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what you've got to do with these
cases to prove up your reserves

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is like pretty much put these
massive fucking ven exploration

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drives out away from where you
are to then get over the top of

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the ore body down there and get
a better, a better angle.

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But it's a, it's a lot of
development, those exploration

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drives, especially once you get
to a kilometre deep and you got

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the, the, you know, thermal side
of things and the auto

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compression.
So it's getting hot.

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They're a single head.
And that's but and it's a lot of

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unnecessary capital to explore.
But then your couple, you can

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kill two birds with one stone in
terms of like another challenge

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with these plunging ore bodies
is the ventilation.

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So and they do mention it in one
of the causes like maintaining

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the ventilation to death because
one, it's under a like so you

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can't just punch a rise bore up
through the surface to for your

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return airway system because
there is water.

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And so you've got to keep
linking your return airway up.

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But as as the mine gets deeper,
so you go down the level.

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So you're over here and the
bottom of your return Airways

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over here.
You've then got to drive back

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that way to link that return
airway up.

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00:09:02,800 --> 00:09:06,760
So it's a lot of ventilation Dr
development, but I'm not sure if

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they do this.
But what you what they could do

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is that with those big long
exploration drives you use, you

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could then once you've finished
exploring and then you go down

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to the bottom.
You're then below then you could

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punch a rise bore up and use
that exploration drive as you

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return airway later on.
So like there, there is options

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to to do that, but it's just a
lot different to a verdict.

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A dead vertical.
I remember at Warrunga Agnew,

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which was gold fields like it is
fucking vertical.

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Like it is that day going down
that decline.

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It is just a spiral and you'd be
driving down there and just like

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fucking hundreds and kilometres
it just it just a dead vertical

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spiral.
Oh God, it would have been a

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00:09:52,400 --> 00:09:54,440
pint.
You imagine being on the decline

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00:09:54,440 --> 00:09:57,680
Jambo, you block and I just get
a fucking straight cut would be

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nice.
I'd be doing you'd get good at

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00:09:59,880 --> 00:10:02,120
doing turns.
So yeah.

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00:10:02,120 --> 00:10:04,840
So I think ventilation keep
maintaining that ventilation.

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00:10:04,840 --> 00:10:10,080
I think they said with the
conveyor it sounds like it was a

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00:10:10,080 --> 00:10:15,400
crusher, so there was a hoist.
There's winds, they call it a

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00:10:15,400 --> 00:10:18,360
winds, but that's a hoist.
So it sounds like there's a

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00:10:18,600 --> 00:10:23,840
crusher with a shaft at some
point that goes up from the

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00:10:23,840 --> 00:10:27,440
bottom levels, hoist it up to
where then the conveyor starts.

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00:10:27,440 --> 00:10:29,880
So I think the conveyor is like
a fixed starting point.

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00:10:30,240 --> 00:10:34,360
They crush it underground
further down up to the conveyor,

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00:10:34,360 --> 00:10:36,040
which it might be halfway up the
mine or.

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00:10:36,040 --> 00:10:37,360
Something I think I saw that in
old pressure.

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00:10:37,360 --> 00:10:39,480
And then it goes up the
conveyor.

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00:10:39,480 --> 00:10:41,720
So I think it sounds like they
did a lot of work to.

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00:10:42,680 --> 00:10:45,800
So then once I go below that,
they would then track up to the

200
00:10:45,800 --> 00:10:48,320
crusher, crush it hoisted up to
the conveyor.

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00:10:48,320 --> 00:10:51,960
At least they're not tracking it
out frigging from shit loads

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00:10:51,960 --> 00:10:56,800
underground.
And cause let me get this right

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00:10:56,800 --> 00:10:58,120
now.
Even though even though it's

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00:10:58,120 --> 00:11:01,160
plunging, it'd be still the same
vertical distance up one in

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00:11:01,160 --> 00:11:03,040
seven.
Even if it's plunging, it's just

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00:11:03,040 --> 00:11:07,280
a different direction.
So yes, it's just the joys of a

207
00:11:07,280 --> 00:11:09,280
shot.
But as I said, shallow plunging

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00:11:09,280 --> 00:11:13,680
ore bodies, you've got a you
don't have to do as much

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00:11:13,680 --> 00:11:16,840
vertical development to get as
much level development done

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00:11:16,920 --> 00:11:20,280
because you because it's there's
it looks like there's over a

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00:11:20,280 --> 00:11:25,320
kilometre or so bloody or more
of strike of all there.

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00:11:25,320 --> 00:11:27,400
So you get a shit load more
level development done.

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00:11:27,400 --> 00:11:30,160
You don't have to go as deep as
quick, but it's very hard to

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00:11:30,160 --> 00:11:33,000
define your body.
I'll say they are assuming that

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00:11:33,000 --> 00:11:34,680
it's just going to keep fucking
going that way.

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00:11:34,680 --> 00:11:38,640
I think Olympic Games the same.
I think it's like, I reckon it's

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00:11:38,640 --> 00:11:41,080
like a big friggin shape of a
saucepan.

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00:11:41,080 --> 00:11:43,880
It's just this handle and then
this big thing and it's just

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00:11:43,960 --> 00:11:47,040
flat and just goes for whatever.
I think you're dead, right.

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00:11:47,040 --> 00:11:50,400
I think they're poked in a
couple holes that sort of show

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00:11:50,560 --> 00:11:52,440
strike could continue 3
kilometres.

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00:11:52,440 --> 00:11:55,120
But again, it's a sort of cost
thing of proving that out and

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00:11:55,120 --> 00:11:56,880
they'll do that in in time,
won't they?

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00:11:56,920 --> 00:11:58,600
Yeah.
So don't don't get too deterred

225
00:11:58,600 --> 00:12:02,760
by reserves with these gold ore
bodies, especially a bloody

226
00:12:02,760 --> 00:12:05,160
shallow plunging 1.
I think that'll tie in perfectly

227
00:12:05,160 --> 00:12:08,480
with a bit of valuation chat
later on and what what the

228
00:12:08,480 --> 00:12:11,640
management team is kind of
thinking with a A6 year reserve

229
00:12:11,640 --> 00:12:12,920
and how they kind of think about
that.

230
00:12:13,400 --> 00:12:17,160
Another thing I I watched a
snippet from a presentation, It

231
00:12:17,160 --> 00:12:20,360
was done last year and it was
about muscle white from

232
00:12:20,520 --> 00:12:22,800
obviously when Newmont owned it
before today.

233
00:12:23,920 --> 00:12:26,480
Yeah, it's just, I'll, I'll play
the whole snippet and it's just

234
00:12:26,480 --> 00:12:30,800
something you can see how
different underground mining

235
00:12:31,160 --> 00:12:37,040
methods, culture advancements
are in North America to what we

236
00:12:37,040 --> 00:12:38,880
know in Australia.
I'll play it all for you.

237
00:12:38,880 --> 00:12:43,080
Let's do it.
So some of those improvements we

238
00:12:43,080 --> 00:12:45,760
implement the jumbo bolting at
Muscle White, that's been a big

239
00:12:45,760 --> 00:12:47,800
transition for us.
We're in the process right now,

240
00:12:47,800 --> 00:12:50,000
but we've got we're getting a
rid of the McLean bolters and

241
00:12:50,000 --> 00:12:53,640
we're using one tool, the jumbo
to allow us to drill and bolt

242
00:12:54,120 --> 00:12:57,080
and advance the mine.
That's unlocking a lot of

243
00:12:57,080 --> 00:13:00,040
potential for us and it
eliminates pieces of equipment

244
00:13:00,040 --> 00:13:03,040
going in and out of the in and
out of the headings.

245
00:13:03,800 --> 00:13:07,680
We moved our blasting, we moved
blasting to shift change.

246
00:13:07,680 --> 00:13:10,320
So we were doing a lot of
blasting on shift, not very

247
00:13:10,320 --> 00:13:12,560
efficient.
So we move that to to shift

248
00:13:12,560 --> 00:13:14,640
change.
We're much more efficient and

249
00:13:14,640 --> 00:13:17,800
safer in our blasting processes.
We're not having to move people

250
00:13:17,800 --> 00:13:20,760
in and out of the operation.
And then we implemented early

251
00:13:20,760 --> 00:13:25,080
mine entry.
We were losing probably 2 1/2

252
00:13:25,080 --> 00:13:28,920
hours at every shift change.
And so we implemented longer

253
00:13:28,920 --> 00:13:32,000
shifts, but we implemented early
mine entry so we could get the

254
00:13:32,040 --> 00:13:34,760
mine ventilated out faster and
get people working and get

255
00:13:34,840 --> 00:13:39,160
people the working face quicker.
On the production side, we

256
00:13:39,160 --> 00:13:43,880
implemented Tele remote mucking.
So no longer are we using line

257
00:13:43,880 --> 00:13:47,080
of sight mucking to to extract
or out of the stoves.

258
00:13:47,080 --> 00:13:50,920
We're using Tele remote and
we're looking to advance that to

259
00:13:50,920 --> 00:13:55,480
potentially some automation.
That now remember this is this

260
00:13:55,480 --> 00:14:00,440
is the world's biggest gold
miner, Newmont and this was from

261
00:14:00,600 --> 00:14:03,040
the stuff they were doing from
2019 onwards.

262
00:14:03,040 --> 00:14:05,600
So they only just started
balding and meshing with the

263
00:14:05,600 --> 00:14:08,560
twin boob jumbo.
They were using the McClain Bolt

264
00:14:08,560 --> 00:14:12,200
rigs, I think they said McClain
and I'll assume then a twin boom

265
00:14:12,200 --> 00:14:17,000
jumbo to separately bore with.
So that's obviously never how

266
00:14:17,000 --> 00:14:20,760
it's been done in Australia.
Like it's always just been

267
00:14:20,760 --> 00:14:23,440
balding and meshing with the
twin boom jumbo and then that

268
00:14:23,440 --> 00:14:26,440
bore and you're just getting
more out of the one machine.

269
00:14:27,000 --> 00:14:29,480
So they've already just started
sort of transitioning that in

270
00:14:29,480 --> 00:14:33,120
the past few years.
Sounds like they were mid shift

271
00:14:33,120 --> 00:14:35,480
blasting, which for the
development.

272
00:14:35,480 --> 00:14:38,840
So it's and for if that's
happening and remember you got a

273
00:14:38,840 --> 00:14:41,160
deep spread out mind.
So it takes ages for people to

274
00:14:41,160 --> 00:14:45,360
get to work.
So they'd probably knock off, go

275
00:14:45,360 --> 00:14:47,800
to like a crew broom, they'd
blast everyone would have a

276
00:14:47,800 --> 00:14:51,320
feed, play cards and fuck around
mid shift while they blast, wait

277
00:14:51,320 --> 00:14:55,280
for re entries to complete, then
go back to work and then

278
00:14:55,960 --> 00:14:58,320
probably a few hours later knock
off, go to the surface, do a

279
00:14:58,320 --> 00:15:01,360
handover on the surface, get the
other shift down, then that mid

280
00:15:01,360 --> 00:15:04,560
shift blast and it's just a lot
of time doing nothing.

281
00:15:04,840 --> 00:15:07,480
So they finally got it to the
stage where it sounds like the

282
00:15:07,480 --> 00:15:13,320
end of shift blasting, working
through the whole shift and

283
00:15:14,320 --> 00:15:16,440
effectively probably double on
the time down the hole.

284
00:15:16,440 --> 00:15:19,480
Because the only the only reason
you would mid shift blast for

285
00:15:19,480 --> 00:15:22,920
development is if you have
absolutely minimal headings in a

286
00:15:22,920 --> 00:15:27,480
mine and you've got one jumbo
effective like and you just need

287
00:15:27,480 --> 00:15:30,160
to fire those heading straight
away so you can get bogging so

288
00:15:30,160 --> 00:15:32,240
you can keep the development
cycle going.

289
00:15:32,240 --> 00:15:36,160
It's and you need to have a
sometimes they do it in

290
00:15:36,160 --> 00:15:39,280
production mines when you've got
you're trying to push an area

291
00:15:39,280 --> 00:15:41,280
down the bottom.
You have an independent firing

292
00:15:41,280 --> 00:15:43,280
zone.
So you'll have say your

293
00:15:43,280 --> 00:15:45,760
productions up here.
Then you go down the decline,

294
00:15:45,760 --> 00:15:48,720
there'll be A tag board.
And so to be down that bottom of

295
00:15:48,720 --> 00:15:51,200
the mine where all the
developments going on, your tag

296
00:15:51,200 --> 00:15:53,080
on, there's a second tag you put
on.

297
00:15:53,080 --> 00:15:54,720
You boys don't remember tagging
on.

298
00:15:54,920 --> 00:15:56,800
Yeah, mate.
So you'd have two tags you tag

299
00:15:56,800 --> 00:15:58,560
on to that.
And then if they want to fire

300
00:15:58,560 --> 00:16:01,880
that everyone has to tag off.
So they can still be doing

301
00:16:02,000 --> 00:16:03,600
mining the Stopes and everything
up here.

302
00:16:03,600 --> 00:16:05,760
But then you can independently
fired down there.

303
00:16:05,760 --> 00:16:10,360
So you take a couple, but
they're like mid shift blasting

304
00:16:10,360 --> 00:16:12,440
is what you do on portal jobs.
So I like it.

305
00:16:12,440 --> 00:16:15,080
Spartan, for instance, they're
punching those 3.

306
00:16:15,080 --> 00:16:16,920
The expiration declines at the
moment.

307
00:16:17,160 --> 00:16:21,400
Soon as that finished charging
one, they're like, well, we can

308
00:16:21,800 --> 00:16:24,800
wait till end of shift or we go
far right now, start bogging and

309
00:16:24,800 --> 00:16:26,960
that's when mid shift.
So the fact you'd never do it in

310
00:16:26,960 --> 00:16:30,480
a in a big mine unless you've
got it fully.

311
00:16:31,560 --> 00:16:32,880
So unless you've got no
headings.

312
00:16:32,880 --> 00:16:35,360
So I would imagine a mine this
big, you would have a, you

313
00:16:35,360 --> 00:16:39,800
should have a lot of headings
because otherwise the mine just

314
00:16:39,800 --> 00:16:41,480
has to stop work.
So.

315
00:16:41,480 --> 00:16:44,160
It's like it's these
productivity kind of losses

316
00:16:44,160 --> 00:16:46,960
relative to the Australian
mining way, which was like the

317
00:16:47,000 --> 00:16:50,560
appeal for like the Northern
Stars and the the evolutions to

318
00:16:50,680 --> 00:16:53,920
to to acquire assets over there,
thinking they could just just

319
00:16:53,920 --> 00:16:57,200
easily kind of replicate the
methods in Australia over there,

320
00:16:57,200 --> 00:16:58,520
right?
But it just proved harder.

321
00:16:58,520 --> 00:17:03,400
Easy to replicate the methods,
but to workforce to go and tell

322
00:17:03,800 --> 00:17:07,319
mining culture that, oh, we're
doing it this way now, we know

323
00:17:07,319 --> 00:17:10,599
you've been doing it this way
for 30 years, You're wrong.

324
00:17:10,960 --> 00:17:15,319
We're right, doesn't that takes
years and years to transition

325
00:17:15,319 --> 00:17:19,560
that and delicately to get them
to come on board with that

326
00:17:19,560 --> 00:17:23,520
method that they think is oh
fuck that we do it this way.

327
00:17:23,520 --> 00:17:26,720
And unions you're dealing with
in places as well.

328
00:17:26,720 --> 00:17:31,000
Yeah, yeah.
And so it's, and it's not that

329
00:17:31,400 --> 00:17:33,960
when you're on the other side of
the fence, it's like it's very

330
00:17:33,960 --> 00:17:36,960
hard to acknowledge that, oh
shit, we are wrong.

331
00:17:37,000 --> 00:17:40,040
You guys are heaps better at
this than us.

332
00:17:40,200 --> 00:17:43,840
It just doesn't work that way.
So it takes years and years and

333
00:17:43,840 --> 00:17:45,680
years to get to change that
culture.

334
00:17:46,320 --> 00:17:48,160
Another one was like that
because I was talking about they

335
00:17:48,160 --> 00:17:51,280
were losing 2 1/2 hours every
shift change.

336
00:17:51,520 --> 00:17:55,200
So I assume they're firing at
ender shift 2 probably the

337
00:17:55,200 --> 00:17:59,000
production stuff.
And it says though they started

338
00:17:59,040 --> 00:18:01,760
early mine entry so it sounds
like they weren't even getting

339
00:18:01,760 --> 00:18:03,520
lot the re entry crews to go
down.

340
00:18:03,520 --> 00:18:07,040
Like usually you go you fire,
then you'll go down half an hour

341
00:18:07,040 --> 00:18:10,320
after that and start checking
all the gas levels and as soon

342
00:18:10,320 --> 00:18:14,360
as the gas levels are below the
acceptable limits for the I

343
00:18:14,360 --> 00:18:17,840
think it's COI think it was
Jesus, I forgot my gases carbon

344
00:18:17,840 --> 00:18:22,520
monoxide.
I think they then you open that

345
00:18:22,520 --> 00:18:25,320
area, then you go deeper make
sure and you gradually do it.

346
00:18:25,680 --> 00:18:29,080
So like 2 and it like 2 1/2
hours plus mid shift blasting

347
00:18:29,080 --> 00:18:32,480
lot sounds like it wasn't much.
The productivity was very low

348
00:18:32,480 --> 00:18:36,720
and that only sounds like I only
recently introduced telly remote

349
00:18:36,720 --> 00:18:39,160
bogging.
So they were using line of sight

350
00:18:39,600 --> 00:18:44,000
bogger race like before that.
So line of sights effectively

351
00:18:45,440 --> 00:18:48,040
you're looking at the bogger
from a distance on the drive

352
00:18:48,040 --> 00:18:50,600
sitting on like a Turkey's nest
or and you got a little hidey

353
00:18:50,600 --> 00:18:54,160
hole you can get into with a
remote control watching it

354
00:18:54,160 --> 00:18:59,200
listening to it and then bogging
it visually from could be bloody

355
00:18:59,200 --> 00:19:02,280
a long way away.
So it's like it's bloody it's a

356
00:19:02,280 --> 00:19:06,160
fine art for people to do it.
But that I don't even know if

357
00:19:06,160 --> 00:19:08,840
that's even done in Australia
anymore because there's been

358
00:19:08,880 --> 00:19:12,680
fatal incidents where people
have been squashed by boggers

359
00:19:12,680 --> 00:19:15,520
because they're like there and
might have been standing

360
00:19:15,520 --> 00:19:18,560
somewhere they didn't bogger
might have got out of control or

361
00:19:18,880 --> 00:19:19,960
malfunction.
I'm not sure.

362
00:19:19,960 --> 00:19:22,960
But there has been so pretty I
don't even think it happens in

363
00:19:22,960 --> 00:19:25,960
Australia anymore.
Telly line of sight bogging my

364
00:19:25,960 --> 00:19:29,480
own small operations.
I'm not sure so and the the

365
00:19:29,680 --> 00:19:31,840
telly remote, because telly
remote bargains where you're in

366
00:19:31,840 --> 00:19:36,280
a Hut either underground or on
the surface watching a bloody TV

367
00:19:36,280 --> 00:19:40,240
screen and you essentially got a
little bogger simulator there

368
00:19:40,240 --> 00:19:43,000
and operating from there.
And the the technology with that

369
00:19:43,000 --> 00:19:47,360
now is like I'll bring I'll show
you the video here of the one of

370
00:19:47,360 --> 00:19:49,880
the it's the that's the same big
order I'm on.

371
00:19:49,880 --> 00:19:53,360
It's one of one of the systems
like you can map the path of the

372
00:19:53,360 --> 00:19:54,880
bogger.
So like they pretty much get the

373
00:19:54,880 --> 00:19:58,280
bucket, turn it, click a button
and it automatically goes back

374
00:19:58,280 --> 00:20:01,240
to the stock pile based on the
map that you've shown.

375
00:20:01,240 --> 00:20:06,160
So it doesn't hit the wall, just
flies along in second gear and

376
00:20:06,160 --> 00:20:08,360
the operator just has to get the
bucket and tip the bucket.

377
00:20:08,400 --> 00:20:11,240
I think you can even order do
that now and then they can

378
00:20:11,240 --> 00:20:16,080
operate multiple boggers in.
Using one operator or they can

379
00:20:16,080 --> 00:20:18,760
have like, and then you can
operate over shift change

380
00:20:18,760 --> 00:20:21,120
because when you're far and you
can keep the remote boggers

381
00:20:21,120 --> 00:20:23,240
down.
Yeah, so all that technology's

382
00:20:23,960 --> 00:20:27,000
been pretty common over here,
but it sounds like it's just

383
00:20:27,000 --> 00:20:32,000
even at a Newmont mine in North
America, it's only just started

384
00:20:32,000 --> 00:20:36,080
really coming in.
So just shows how different the

385
00:20:36,080 --> 00:20:39,120
mining cultures are underground
from here and over there.

386
00:20:39,200 --> 00:20:42,800
So there is some.
Don't mean to sound like a Dick,

387
00:20:43,320 --> 00:20:45,360
but just highlighting the
obvious.

388
00:20:46,080 --> 00:20:49,120
Room for room for improvement
everywhere where and that'll in

389
00:20:49,120 --> 00:20:51,360
the long run make them a bit
more money if they can sort of

390
00:20:52,080 --> 00:20:53,400
capitalise on those things.
Hey, yeah.

391
00:20:53,800 --> 00:20:55,840
Just just do it our way, it's
quicker.

392
00:20:57,440 --> 00:21:00,960
So let's talk about how they are
paying for the deal.

393
00:21:01,040 --> 00:21:03,280
It's a pretty interesting
financing, Trev.

394
00:21:03,640 --> 00:21:07,320
We sort of dug into this one.
So like I said, US 810 upfront

395
00:21:07,320 --> 00:21:12,080
plus 20 million each if gold
averages over 2900 over the the

396
00:21:12,080 --> 00:21:16,080
first year afterwards and over
3000 bucks an ounce over that

397
00:21:16,080 --> 00:21:18,880
second year after Closings up to
850.

398
00:21:18,880 --> 00:21:22,160
But we're now flash the sources
of cash.

399
00:21:22,160 --> 00:21:26,040
So how they're going to fund the
transaction First up is 350

400
00:21:26,040 --> 00:21:29,080
million, all US I'm talking
about here a three year term

401
00:21:29,360 --> 00:21:33,000
gold prepayment.
So essentially every month they

402
00:21:33,000 --> 00:21:37,080
will deliver gold to the
facilitators of this gold

403
00:21:37,360 --> 00:21:41,280
prepayment, IE you're paying
your principal down in gold, not

404
00:21:41,280 --> 00:21:44,760
cash.
They call it roughly 150,000 oz

405
00:21:44,800 --> 00:21:49,160
or to go down and it's based
upon the prevailing gold forward

406
00:21:49,160 --> 00:21:53,240
curve at the date.
So imagine this is locked in

407
00:21:53,240 --> 00:21:56,000
when the transaction is agreed
needs to be voted upon.

408
00:21:56,520 --> 00:22:02,240
They want to execute this by Q1
of next year, next calendar year

409
00:22:02,240 --> 00:22:06,600
that is so the the prevailing
forward price It will you know

410
00:22:07,000 --> 00:22:09,480
it's always sort of where the
gold price is now and then goes

411
00:22:09,480 --> 00:22:12,920
up a couple 100 bucks right now
it's sort of approaches kind of

412
00:22:12,920 --> 00:22:16,440
steadily 3000 ish dollars come
three years time.

413
00:22:16,440 --> 00:22:19,880
So they call that about 16% of
their annual production over the

414
00:22:19,880 --> 00:22:23,080
next three years.
You've then got a con note that

415
00:22:23,080 --> 00:22:27,440
makes up to $100 million of the
financing that is convertible at

416
00:22:27,520 --> 00:22:31,080
Canadian 7 bucks 90.
Their stock closed after that

417
00:22:31,080 --> 00:22:35,600
bump on the announcement at $6.
This has a five year term 4 1/2%

418
00:22:35,640 --> 00:22:37,880
+ a a bit of an attaching
warrant.

419
00:22:38,200 --> 00:22:43,040
You've also then got a revolver
for $150 million and a term loan

420
00:22:43,040 --> 00:22:47,040
for 100 million, both actually
paying, you know, relatively

421
00:22:47,040 --> 00:22:50,280
little compared to some of the
other smaller, riskier mining

422
00:22:50,280 --> 00:22:52,520
companies we've seen.
They're paying Sofa plus a

423
00:22:52,520 --> 00:22:56,200
margin which is about 3%
depending on the leverage ratio

424
00:22:56,360 --> 00:22:58,320
at the time.
Actually, I actually quite like

425
00:22:58,320 --> 00:23:02,000
how they they financed the deal.
There's no, no equity collusion

426
00:23:02,240 --> 00:23:05,720
here, OK, maybe maybe the
converts convert in an upside

427
00:23:05,840 --> 00:23:09,320
scenario, but yeah, no upfront
equity dilution that's, you

428
00:23:09,320 --> 00:23:12,440
know, positive.
So if we're if we assume they're

429
00:23:12,440 --> 00:23:15,240
kind of paying fair value for
the asset, right, Look at the

430
00:23:15,240 --> 00:23:17,280
look at the instrument doing the
bulk of the heavy lifting and

431
00:23:17,280 --> 00:23:19,880
the financing, it's that gold
prepaid where they're going to

432
00:23:19,880 --> 00:23:23,720
be locking in an implied kind of
gold price for future deliveries

433
00:23:23,720 --> 00:23:25,440
based on the forward curve at
that time.

434
00:23:25,440 --> 00:23:28,760
Like you said, JD, the forward
curve is sort of, you know, it's

435
00:23:29,280 --> 00:23:33,000
sitting above spot, it's well
above consensus and and they're

436
00:23:33,000 --> 00:23:35,280
effectively locking in those
prices with this instrument for

437
00:23:35,280 --> 00:23:37,400
the quantity of gold to be
delivered into that prepaid.

438
00:23:37,400 --> 00:23:40,960
And I like that because none of
the gold mining equities all are

439
00:23:41,280 --> 00:23:44,000
included here.
You know, the market's not

440
00:23:44,000 --> 00:23:48,320
paying Spot gold price for them.
They're paying kind of consensus

441
00:23:48,320 --> 00:23:50,880
gold price or, or you know, or
maybe a little bit above that.

442
00:23:50,880 --> 00:23:53,480
But it's a bit over 2000.
Yeah, ish.

443
00:23:54,280 --> 00:23:56,520
They're not, they're not, you
know, these the equities aren't

444
00:23:56,520 --> 00:23:59,080
reflecting Spot gold, they're
reflecting a, a curve which

445
00:23:59,080 --> 00:24:01,840
trends sort of lower over time
from a gold price perspective.

446
00:24:01,840 --> 00:24:05,600
But the financing arrangement
here gets to lock in closer to,

447
00:24:05,640 --> 00:24:08,000
you know, higher prices spot
future forward curve.

448
00:24:09,560 --> 00:24:11,760
So they, they get, they get,
they get the benefit of locking

449
00:24:11,760 --> 00:24:13,960
in high prices despite the fact
that, you know, the, the

450
00:24:13,960 --> 00:24:15,960
market's not paying back for the
equities.

451
00:24:16,840 --> 00:24:19,240
So I just, I quite like it.
I'll play this, this snip to

452
00:24:19,240 --> 00:24:21,000
elaborate a bit from the M&A
call.

453
00:24:21,240 --> 00:24:30,920
NPV on reserves only is $760
million at 2150 per oz gold and

454
00:24:30,920 --> 00:24:35,800
almost $1 billion at $2500 per
oz gold.

455
00:24:36,720 --> 00:24:39,520
So if you if you take their word
for it, they're paying $850

456
00:24:39,880 --> 00:24:43,840
million including the
contingents, which is probably

457
00:24:43,840 --> 00:24:46,920
about 0.8 times naval on their
own kind of reserves.

458
00:24:46,920 --> 00:24:52,880
Only scenario at Spot gold price
of US 2600 ish today, the

459
00:24:52,880 --> 00:24:56,240
prepaid, you know they get to
lock in some of the value upside

460
00:24:56,240 --> 00:24:58,880
from paying less than spot NAV
and and they also get the

461
00:24:58,880 --> 00:25:01,920
benefit from Oz not in reserves
like you talk about Maddie, if

462
00:25:01,920 --> 00:25:04,680
it just kind of keeps on
continuing which you sort of

463
00:25:04,680 --> 00:25:06,400
expect your body to do.
Fuck it up so.

464
00:25:07,840 --> 00:25:10,120
We should probably check in
there is financing costs, it's

465
00:25:10,120 --> 00:25:12,480
not purely.
By all accounts, the prepaid

466
00:25:12,480 --> 00:25:14,920
looks expensive like from the
financing cost perspective.

467
00:25:15,120 --> 00:25:17,560
It's just that, yeah, the
utilisation of the instrument I

468
00:25:17,560 --> 00:25:20,840
quite like given what gold price
has done in a short period of

469
00:25:20,840 --> 00:25:23,320
time and and what what kind of
now you're always caught

470
00:25:23,400 --> 00:25:28,200
apprehensive in are doing pro
cyclical M and AI think by kind

471
00:25:28,200 --> 00:25:31,320
of, you know, locking in the
forward price via the prepaid

472
00:25:31,320 --> 00:25:34,320
instrument They're yeah
protecting themselves from

473
00:25:34,320 --> 00:25:37,000
looking silly doing pro cyclical
M&A, Yeah and not issuing a

474
00:25:37,000 --> 00:25:39,320
bunch of equity too.
So the gold price is sort of

475
00:25:39,320 --> 00:25:41,600
run, you think about what you
can kind of utilise.

476
00:25:41,600 --> 00:25:43,960
The first thing you kind of
think about is your equity if

477
00:25:43,960 --> 00:25:46,360
that's also run on the back of
the gold price run.

478
00:25:46,360 --> 00:25:49,520
But this is a bit of a a
creative way to to tap into that

479
00:25:49,960 --> 00:25:53,400
without diluting, yeah.
We'll have to say, what do you

480
00:25:53,440 --> 00:25:58,160
think about the is it a bloody?
Is it a good bang for buck?

481
00:25:58,320 --> 00:26:00,560
What sort of valuation they're
putting on it?

482
00:26:01,320 --> 00:26:06,160
So it depends what you flash.
Like Trev said .8 times NAV if

483
00:26:06,160 --> 00:26:11,440
you use 2600, if you use which
is the prices that Chuck down

484
00:26:11,440 --> 00:26:16,720
the model 2150 U.S. dollars,
you're paying a bit over one

485
00:26:16,720 --> 00:26:20,760
times NAV.
So you're paying pretty full

486
00:26:20,760 --> 00:26:22,920
value.
Although the upside is that that

487
00:26:22,920 --> 00:26:27,000
is only on reserves and that is
on a gold price 500 bucks ish

488
00:26:27,000 --> 00:26:29,360
lower than than where we are
today.

489
00:26:29,400 --> 00:26:32,360
So if if you're confident that
and I'm sure the management team

490
00:26:32,360 --> 00:26:35,920
is confident that this mine is
not going to stop in 20-30, it's

491
00:26:35,920 --> 00:26:39,320
going to it's going to keep
going for a good while longer.

492
00:26:39,840 --> 00:26:42,000
And you're also, I mean, why
would you be managing a gold

493
00:26:42,000 --> 00:26:44,480
company if you're not thinking
the gold price is going to tick

494
00:26:44,480 --> 00:26:47,200
along?
Then if those things hold and

495
00:26:47,200 --> 00:26:49,960
importantly if those things, if
that, you know, gold price holds

496
00:26:49,960 --> 00:26:53,480
true over the next few years,
importantly as it sort of ties

497
00:26:53,480 --> 00:26:56,840
in with your financing, then you
will see a bit of value.

498
00:26:57,040 --> 00:27:01,040
And then cream on top of that is
all the other flows of being one

499
00:27:01,040 --> 00:27:04,200
of the standout bunch of names
in in your jurisdiction and all

500
00:27:04,200 --> 00:27:06,840
those other things that you get.
Yeah, jumping ahead a bit,

501
00:27:07,040 --> 00:27:09,920
Maddie, this is to that exact
question.

502
00:27:10,680 --> 00:27:13,880
I asked a a North American
correspondent what what he

503
00:27:13,880 --> 00:27:15,160
thought and he told me these
points.

504
00:27:15,400 --> 00:27:20,200
Definitely very full price at
1.1 times NPV at 5% discount

505
00:27:20,200 --> 00:27:22,600
rate at 2150 per oz.
Is that the right number to use?

506
00:27:22,600 --> 00:27:25,560
I don't know, but he reckons
that was expected because

507
00:27:25,760 --> 00:27:28,800
Newmont apparently had over 100
CAS signed for this sale

508
00:27:28,800 --> 00:27:29,800
process.
So it was, you know, an

509
00:27:29,800 --> 00:27:32,560
attractive sale process.
Yeah, all there is a midcap

510
00:27:32,560 --> 00:27:34,480
dialling here.
Given how well they delivered

511
00:27:34,600 --> 00:27:37,520
low cost Camino Rojo and asset
they picked up for peanuts from

512
00:27:37,520 --> 00:27:40,560
Gold Corp.
He reckons that all the guys

513
00:27:40,680 --> 00:27:44,200
will likely push for that.
You know, my life out from a six

514
00:27:44,200 --> 00:27:46,680
years to 10 years in the in the
next year or so.

515
00:27:47,080 --> 00:27:48,960
And he reckons, you know, full
price paid.

516
00:27:48,960 --> 00:27:53,080
But if if they can manage the
grade decline and the sustaining

517
00:27:53,080 --> 00:27:55,080
CapEx, he reckons, you know
they'll do, they'll do well out

518
00:27:55,080 --> 00:27:56,680
of it.
The grade decline is an

519
00:27:56,680 --> 00:27:59,200
interesting one because I looked
back 20 years to see what the

520
00:27:59,200 --> 00:28:02,520
reserve was back then and the
the grade was a bit lower.

521
00:28:02,560 --> 00:28:07,080
It was 5.5 ish grammes per
tonne, very, very hard to to

522
00:28:07,080 --> 00:28:08,680
find what the cut off grade
being used.

523
00:28:08,680 --> 00:28:13,400
But today like I said before,
6.2 roughly grammes per tonne

524
00:28:13,400 --> 00:28:17,320
using a 3.8 grammes per tonne
cut off grade going going deeper

525
00:28:17,320 --> 00:28:21,920
and you know all that.
But that has over 28 years

526
00:28:22,080 --> 00:28:25,920
remained pretty, pretty
consistent. 96% recovery I

527
00:28:25,960 --> 00:28:27,720
think.
I think if you look at like my

528
00:28:27,720 --> 00:28:30,320
Bush maths and looking at it
like you look at the, IT looks

529
00:28:30,320 --> 00:28:33,240
like Newmont's put a bit of
capital in it with the the

530
00:28:33,400 --> 00:28:35,840
crushing hoisting conveyor
system.

531
00:28:35,840 --> 00:28:39,520
So looks like in the, you know,
one and half million tonne plan,

532
00:28:40,960 --> 00:28:46,000
existing infrastructure, 200,000
oz mine, potentially a bit over

533
00:28:46,120 --> 00:28:50,240
2000 bucks Aussie all in
sustaining and then paid what

534
00:28:50,680 --> 00:28:53,280
one point if we converted to
Aussie to try and compare it to

535
00:28:53,280 --> 00:28:58,520
Aussie things paying paying what
1.3 billion, not all upfront

536
00:28:58,840 --> 00:29:03,360
effectively, that's all you
compare that to a that's what

537
00:29:03,360 --> 00:29:05,840
Spartan that's going to probably
need to be taken out for 2

538
00:29:05,840 --> 00:29:08,800
billion.
On it's push mass.

539
00:29:09,000 --> 00:29:10,920
Push mass, Yeah.
Yeah, it looks, it doesn't look

540
00:29:10,920 --> 00:29:13,640
too bad, no.
It but it does look full value

541
00:29:13,640 --> 00:29:16,320
when you compare it to like the
Tel Havron deal for example.

542
00:29:16,320 --> 00:29:19,840
But the difference is obviously
the the dynamics of that sale

543
00:29:19,840 --> 00:29:22,720
process which gave heaps of
leverage to to Greyland Gold.

544
00:29:23,280 --> 00:29:26,200
It looks, it looks full valued
versus that, right?

545
00:29:26,200 --> 00:29:29,800
So that they talk about 150
million bucks free cash flow per

546
00:29:29,800 --> 00:29:34,640
annum at a 2150 gold price,
everything remaining constant.

547
00:29:34,960 --> 00:29:36,640
And you know, you've got other
potential.

548
00:29:36,640 --> 00:29:39,760
You know, they, they talk a lot
about optimising all those sorts

549
00:29:39,760 --> 00:29:42,120
of things.
Definitely not meal constrained,

550
00:29:42,120 --> 00:29:44,440
you know, like, like most
underground minds mine

551
00:29:44,440 --> 00:29:46,880
constrained.
But there is the capacity given

552
00:29:46,880 --> 00:29:50,200
they can go up to 1.5 million
tonnes per annum if they can do

553
00:29:50,200 --> 00:29:53,120
anything over the next few years
to try and make that work a bit

554
00:29:53,120 --> 00:29:54,440
better.
That's a bit more your your

555
00:29:54,440 --> 00:29:58,040
area, Maddie, but there is
potential for them to push

556
00:29:58,040 --> 00:30:02,080
through more answers and get a
bit more upside on on that front

557
00:30:02,080 --> 00:30:03,800
too.
So they're all those other

558
00:30:03,800 --> 00:30:06,240
little goals that they can sort
of strike out for.

559
00:30:06,520 --> 00:30:09,440
Yeah, no, they and when I
probably comparing it to Spartan

560
00:30:09,440 --> 00:30:11,760
might be the right thing in
terms of Spartan, it's probably

561
00:30:11,760 --> 00:30:15,720
a lot going to be a lot
shallower simpler because it's

562
00:30:15,720 --> 00:30:19,440
not 28 years, not as deep, not
as not as hot.

563
00:30:21,080 --> 00:30:23,960
There's obviously the the North
American aspect to it, trying to

564
00:30:24,040 --> 00:30:28,120
keep the cost down and keep the
the delivery of those answers.

565
00:30:28,120 --> 00:30:30,360
But if they can, you know when
you got the grade in your

566
00:30:30,360 --> 00:30:34,560
recovery on your side like that.
Yeah, I suppose looking as you

567
00:30:34,560 --> 00:30:36,760
said, they paid a bit more than
Telfer and all that.

568
00:30:36,760 --> 00:30:39,040
But I think when we did the
Telfer Avront deal, we're like,

569
00:30:39,040 --> 00:30:41,560
fuck, that's actually for what
they're getting is a pretty good

570
00:30:41,560 --> 00:30:42,240
deal.
Totally.

571
00:30:42,320 --> 00:30:44,640
Yeah, I mean.
This is you can get a good deal

572
00:30:44,640 --> 00:30:46,120
off Newmont.
They're going out.

573
00:30:46,120 --> 00:30:49,200
They're flying out the door.
That's that's it's usually a

574
00:30:49,200 --> 00:30:52,280
good strategy to acquire assets
that come out of majors, right?

575
00:30:52,280 --> 00:30:54,880
Like that Northern Star, It's
gonna look at what built then.

576
00:30:55,200 --> 00:30:59,120
Totally, you know, there's there
there are exceptions to the

577
00:30:59,120 --> 00:31:00,840
rule, but in general it's a
pretty good rule.

578
00:31:00,840 --> 00:31:05,080
And I I also heard that kind of
compared to evolution buying Red

579
00:31:05,080 --> 00:31:10,200
Lake, you've got a much more de
risked and and simple minor here

580
00:31:10,200 --> 00:31:13,880
and also a place where the
unions are less entrenched than

581
00:31:14,120 --> 00:31:15,760
than you have in sort of Red
Lake area too do.

582
00:31:16,000 --> 00:31:19,080
You know who else was on the CR?
Oh, who?

583
00:31:19,120 --> 00:31:20,600
Who else had been in the
process?

584
00:31:20,600 --> 00:31:22,120
Yeah.
Signed ACA confidential.

585
00:31:22,120 --> 00:31:23,640
Man, I don't know.
Yeah, they're fine.

586
00:31:23,640 --> 00:31:26,520
That's why.
That's why there was that.

587
00:31:26,520 --> 00:31:29,200
Why can't you be like magnetic
and tell you everyone who's in

588
00:31:29,200 --> 00:31:32,000
the data room?
They're more people like them.

589
00:31:32,680 --> 00:31:38,120
They had a bit of a a cheeky
slide on value accretion.

590
00:31:38,520 --> 00:31:39,000
They.
Did.

591
00:31:39,400 --> 00:31:42,040
I it's a bit of a funny one,
given that the financing.

592
00:31:42,040 --> 00:31:45,040
Yeah, complimenting them on
buddy, you know, maybe maybe

593
00:31:45,040 --> 00:31:48,120
picking up an asset out of the
major and you know with wishing

594
00:31:48,120 --> 00:31:50,320
him good luck, but I gotta gotta
grill him on this slide.

595
00:31:50,320 --> 00:31:52,520
Not a fan of this slide showing
how a creative the deal is on a

596
00:31:52,520 --> 00:31:55,000
per share basis.
You fund your deal with debt.

597
00:31:55,280 --> 00:31:57,680
Everything's a creative on a per
share basis because you got

598
00:31:57,680 --> 00:32:00,200
extra earnings, extra
production, extra everything

599
00:32:00,200 --> 00:32:02,600
without issuing a new share.
Of course it's a creative you

600
00:32:02,600 --> 00:32:05,520
debt funded it.
So I just I should?

601
00:32:05,520 --> 00:32:08,920
Slide in next to that like your
net debt day, but or something

602
00:32:08,920 --> 00:32:10,720
like that just to show that it's
not all one way.

603
00:32:10,920 --> 00:32:13,080
Exactly.
Good M&A isn't, isn't about per

604
00:32:13,080 --> 00:32:15,840
share accretion, it's about
sound, you know, weighing up the

605
00:32:15,840 --> 00:32:18,960
risk verse reward capital
allocating accordingly for, for

606
00:32:18,960 --> 00:32:22,360
where you have no good, good,
good risk for, for the good

607
00:32:22,360 --> 00:32:23,400
reward for the risk you're
taking.

608
00:32:23,400 --> 00:32:26,280
I think this slide does nothing
to appreciate the additional

609
00:32:26,280 --> 00:32:28,960
business risk that you, you know
it comes with adding leverage to

610
00:32:28,960 --> 00:32:31,960
your cap structure.
It's just pointing a rosy

611
00:32:31,960 --> 00:32:33,280
picture.
We expect nothing else from it

612
00:32:33,960 --> 00:32:36,160
bankers, right, That will always
post the rosy thing.

613
00:32:36,160 --> 00:32:39,120
But but you know, I think we're
you know, we're keen to see how

614
00:32:39,120 --> 00:32:41,080
it all comes along.
I think it'll be an interesting

615
00:32:41,080 --> 00:32:43,520
one to fall in nonetheless.
The straight like the like the

616
00:32:43,520 --> 00:32:47,520
deal and the yeah, the stock was
up like 9% or something.

617
00:32:47,600 --> 00:32:50,520
Yeah, something like that.
What did I trade on again, Ola?

618
00:32:51,280 --> 00:32:56,000
The market, yeah, I think NYC as
well as in Canada, yeah.

619
00:32:56,240 --> 00:32:59,800
Yeah, yeah.
Interesting.

620
00:32:59,960 --> 00:33:01,440
Let's talk a bit about.
Dick and boys.

621
00:33:01,560 --> 00:33:02,840
Metallurgy.
Oh, that's.

622
00:33:03,800 --> 00:33:06,440
Right, Spartan chucked out some
Met results.

623
00:33:06,440 --> 00:33:08,640
Ding, Ding, Ding to start.
Oh yeah, true.

624
00:33:09,240 --> 00:33:14,080
So further, it's sort of most of
it was from the top 450 metres.

625
00:33:14,080 --> 00:33:16,720
So bring up the pitches and
everything.

626
00:33:16,720 --> 00:33:23,160
Averaged 92.3% recovery for the
over 15 Tests for the top 450.

627
00:33:23,400 --> 00:33:29,240
So 91.6% predicted recovery
based on the grade of those

628
00:33:29,240 --> 00:33:31,240
regions and the predicted plant
conditions.

629
00:33:31,240 --> 00:33:33,880
So they gave a lot of the MET
test results and then I guess

630
00:33:33,880 --> 00:33:38,920
the predicted recovery based on
the the way I interpreted the

631
00:33:38,920 --> 00:33:42,600
average grade of those areas and
how the plan will operate.

632
00:33:42,600 --> 00:33:45,320
So which the predicted
recoveries will lower than the

633
00:33:45,320 --> 00:33:49,520
test recoveries.
So it was that's a passes the

634
00:33:49,520 --> 00:33:52,800
sniff test you'd say.
So gravity recovery sitting

635
00:33:52,800 --> 00:33:57,520
around 25 to 30% you can and you
can see from the stages and the

636
00:33:57,520 --> 00:34:01,720
recoveries for each of those
stages, the recovery did decline

637
00:34:01,720 --> 00:34:05,560
as they went deeper with so
stage 4 recovery drops slightly

638
00:34:05,560 --> 00:34:09,120
below 90% and but I'll go into
that later.

639
00:34:09,400 --> 00:34:13,719
It's these results are based on
I guess stage 1 and 2 with 48

640
00:34:13,719 --> 00:34:17,800
hour leach at 100 Micron grind
and stage 3 and four with 48

641
00:34:17,800 --> 00:34:21,199
hour leach with 75 milk Micron
grind.

642
00:34:21,760 --> 00:34:24,960
So we'll get in the grind as
well because we're going below

643
00:34:24,960 --> 00:34:27,800
75.
Now remember Dale Garanga has an

644
00:34:27,800 --> 00:34:30,920
existing two and it's got
existing infrastructure two and

645
00:34:30,920 --> 00:34:32,440
a half million tonne per annum
mil.

646
00:34:32,679 --> 00:34:36,520
So which is run by the the jaw
two big jaw crusher and a big

647
00:34:36,520 --> 00:34:38,159
sag mill.
Yep, so they're going to have to

648
00:34:38,159 --> 00:34:40,760
do some mods to that which will
get into what we think might

649
00:34:40,760 --> 00:34:44,280
that might be Yep look, the the
fact I'm going into these met

650
00:34:44,280 --> 00:34:46,679
results in such detail.
Spartan.

651
00:34:46,960 --> 00:34:50,360
You can repay me by calling
Steve Tarr from CRE insurance

652
00:34:50,360 --> 00:34:53,679
because and getting CRE to just
make sure that existing

653
00:34:53,679 --> 00:34:57,840
infrastructure there right now
is insured properly.

654
00:34:57,840 --> 00:35:01,800
Because on I'm basing a lot of a
lot of what I'm about to say is

655
00:35:01,800 --> 00:35:05,000
based on that existing
infrastructure that is in place

656
00:35:05,280 --> 00:35:07,200
now.
If something happens to it from

657
00:35:07,200 --> 00:35:10,720
either acts of Mother Nature or
human nature and they're not

658
00:35:10,720 --> 00:35:13,640
bloody properly insured for it
and they didn't take action with

659
00:35:13,640 --> 00:35:17,720
CRE, I'm going to be pissed off
because all my assumptions of

660
00:35:17,880 --> 00:35:19,920
for nothing.
So I don't want, I want that

661
00:35:19,920 --> 00:35:21,840
mill protected.
It's a layup, Maddie.

662
00:35:22,000 --> 00:35:25,640
Yeah, I want CRE to protect it.
So mate, don't piss me off.

663
00:35:25,640 --> 00:35:27,960
Call CRE Insurance.
Maybe it's easy for me.

664
00:35:27,960 --> 00:35:31,440
I've got maybe your fair story
for you involving involving

665
00:35:31,480 --> 00:35:35,560
insurance and gas coin.
Not not Spartan, but the

666
00:35:35,560 --> 00:35:38,880
previous yeah, I'll tell you
that one off here, but CRE could

667
00:35:38,880 --> 00:35:41,440
have fixed that.
CRE can fix anything.

668
00:35:42,080 --> 00:35:44,480
Gas corn would still be gone
probably if CRE were.

669
00:35:44,720 --> 00:35:47,360
Off I could make a case that
that would be possible.

670
00:35:47,360 --> 00:35:51,280
But are you taking into account
how good Steve Tarr is when you

671
00:35:51,280 --> 00:35:58,000
make that case anyway?
No, the positive thing for

672
00:35:58,000 --> 00:36:01,120
potential recovery improvements
based on these MET results, and

673
00:36:01,120 --> 00:36:02,480
I'll bring up the graph here is
this.

674
00:36:02,920 --> 00:36:05,960
You can see there's a linear
relationship between the ground

675
00:36:05,960 --> 00:36:09,160
size and the 48 hour tiles grade
for the preliminaries,

676
00:36:09,520 --> 00:36:12,640
preliminary results I got for
stage five and six, which is the

677
00:36:12,640 --> 00:36:15,400
deepest stuff, the honeypot,
never, never.

678
00:36:15,680 --> 00:36:20,800
So yeah, So the overall
recovery, it's and you can do it

679
00:36:20,800 --> 00:36:23,760
from the tables, you, you
subtract that tile grade from

680
00:36:23,760 --> 00:36:26,760
the head grade and divide all
that by the head grade.

681
00:36:26,920 --> 00:36:28,560
That gives you the overall
recovery.

682
00:36:28,560 --> 00:36:31,200
Essentially what's getting
pissed, the shit they get

683
00:36:31,640 --> 00:36:33,440
compared to what's getting
pissed out to tiles.

684
00:36:33,440 --> 00:36:38,880
So you can see for stage 4, so
7.2 -, .74 / 7.2 gives only

685
00:36:38,880 --> 00:36:42,720
9.8%.
So that was done at 75 Micron

686
00:36:42,720 --> 00:36:45,400
grand size.
Now you can see on this graph

687
00:36:45,400 --> 00:36:49,440
based on these two preliminary
tests on the deep stuff, the

688
00:36:49,440 --> 00:36:54,320
tile grade keeps decreasing as
they grind it finer.

689
00:36:54,720 --> 00:36:59,160
So at 63 Micron, which isn't we
don't usually talk about 60,

690
00:36:59,160 --> 00:37:03,240
usually it goes 75 and then they
start talking about like high

691
00:37:03,240 --> 00:37:05,640
pressure grinding roles and
things like that.

692
00:37:05,640 --> 00:37:08,000
But I.
Remember, Stewart is saying 75

693
00:37:08,000 --> 00:37:10,400
was a bit of a.
Yeah, jeez, I think it's the the

694
00:37:10,400 --> 00:37:13,160
rule of thumb where you sort of
what you go down to.

695
00:37:13,160 --> 00:37:20,520
But at 63 Micron, the average
recoveries were 92.2 and 92 1/2

696
00:37:20,520 --> 00:37:22,640
percent.
So they've, you know, added it

697
00:37:22,640 --> 00:37:27,000
looks like if they do grind at
finer, they can get another

698
00:37:27,000 --> 00:37:29,880
couple of percent recovery.
So, you know, extra 2% recovery

699
00:37:29,880 --> 00:37:33,000
of 150,000 oz.
There's 3000 oz, Yeah.

700
00:37:33,840 --> 00:37:35,720
More power though.
There is more power.

701
00:37:35,760 --> 00:37:40,800
It does require more power, but
it's after that power is

702
00:37:40,800 --> 00:37:42,720
consumed like.
What's the benefit?

703
00:37:42,720 --> 00:37:45,560
Pouring an extra gold bar
fucking doesn't cost anything

704
00:37:45,560 --> 00:37:47,120
more if you're pissing it out
the tails.

705
00:37:47,120 --> 00:37:53,080
So it's a, it's a cost, it's a
power to bloody revenue

706
00:37:53,320 --> 00:37:55,120
comparison that they'll need to
make.

707
00:37:55,120 --> 00:37:58,160
Because marginally more grind
media as well, hey?

708
00:37:58,400 --> 00:38:01,480
Yeah.
So you would need, well, it's a,

709
00:38:01,680 --> 00:38:04,960
it's a, it's a power thing, but
it's a CapEx thing because to,

710
00:38:04,960 --> 00:38:08,040
to grind it down to 63, they're
talking about doing test work to

711
00:38:08,040 --> 00:38:11,240
grind it down to 53.
So if they can increase the

712
00:38:11,240 --> 00:38:14,720
cover recovery even more, so
they effectively need a bigger

713
00:38:14,720 --> 00:38:16,760
ball mill.
So you need a bigger, bigger

714
00:38:16,760 --> 00:38:19,400
ball mill which has more balls
in it.

715
00:38:20,800 --> 00:38:23,000
And because it's bigger, it
requires more power.

716
00:38:23,000 --> 00:38:25,400
So it's all all going to be
based, it's all going to be

717
00:38:25,400 --> 00:38:27,760
based off a kilowatt calculation
at the start.

718
00:38:27,760 --> 00:38:31,200
It's like right, Are we going to
grind to 63 or are we going to

719
00:38:31,200 --> 00:38:34,040
grind to 53?
How big of a ball mill do we

720
00:38:34,040 --> 00:38:37,880
need to install with?
I think ball mills run it.

721
00:38:37,920 --> 00:38:41,080
I think it's 30 to 35% ball
charge.

722
00:38:41,320 --> 00:38:44,560
But if you got a bigger ball
mill, there's more balls bloody

723
00:38:44,560 --> 00:38:47,160
in it to bloody grind the apps
living piss out of it.

724
00:38:47,160 --> 00:38:53,400
So now, considering what they've
got already, and now I've talked

725
00:38:53,400 --> 00:38:57,360
about it before, is so that that
ball meal has to go in that that

726
00:38:57,360 --> 00:38:59,360
need.
They need that ball meal to

727
00:38:59,480 --> 00:39:02,200
grind it down to 53 or 63.
That's a given.

728
00:39:02,440 --> 00:39:04,720
But considering they got the
massive jaw crusher and the

729
00:39:04,720 --> 00:39:07,320
massive sag mill already,
they've they've obviously got

730
00:39:07,320 --> 00:39:12,280
the two options to either so
they can go jaw to the big sag,

731
00:39:12,440 --> 00:39:15,440
then into the ball mill.
From that there will there's

732
00:39:15,440 --> 00:39:18,840
scats that come out of the ball
the the sag mill that have to be

733
00:39:18,840 --> 00:39:22,400
either chucked back into the sag
mill or like a you need like a

734
00:39:23,040 --> 00:39:26,160
tertiary cone crusher.
I think it is like to actually

735
00:39:26,480 --> 00:39:29,160
crush those scats down to then
feedback into the sag.

736
00:39:29,400 --> 00:39:31,720
Otherwise you just got these
fucking shop puts everywhere

737
00:39:31,720 --> 00:39:37,600
that you that are good fuck all.
Or they can, you know, install

738
00:39:37,600 --> 00:39:40,760
to like a three stage crushing
system to go into the ball mill.

739
00:39:40,760 --> 00:39:46,800
So the existing jaw then to cone
crushes Jowdry like cone

740
00:39:46,800 --> 00:39:49,000
crushes.
That'll get it down to the 8 to

741
00:39:49,000 --> 00:39:51,920
10 mil that is needed to then
feed into the ball mill.

742
00:39:52,160 --> 00:39:55,840
So it'll be wiring up right,
Because I'm pretty sure the the

743
00:39:55,840 --> 00:39:58,720
big sag mill they got would use
a lot more a lot of power.

744
00:39:59,000 --> 00:40:01,840
So it's like, but it's there,
it's already there.

745
00:40:02,120 --> 00:40:05,040
So it's like, well, is that the
best option or?

746
00:40:05,840 --> 00:40:09,840
Is installing 2 cone crushes and
having the three stage crushing

747
00:40:09,840 --> 00:40:11,360
system to go in the better
option?

748
00:40:11,840 --> 00:40:15,560
22 cone crushes first one SAG
mill you got 2 bits of kit to

749
00:40:15,560 --> 00:40:19,400
maintain rather than 1.
So it's going to be the that's

750
00:40:19,400 --> 00:40:21,640
going to be the way up.
It's like you you would.

751
00:40:21,640 --> 00:40:24,600
I think I said it the opposite
way in previous episode, but

752
00:40:24,600 --> 00:40:28,760
you'd think if they can go jaw
to existing SAG, manage scats

753
00:40:28,760 --> 00:40:31,320
into a new ball mill,
considering that existing

754
00:40:31,320 --> 00:40:34,040
infrastructure think that's
probably the way they'd go.

755
00:40:34,280 --> 00:40:40,040
So I think 3 stage crushing in
the ball was the norm, but I

756
00:40:40,040 --> 00:40:43,040
think places like from what I've
heard, Thunderbox, Mangari,

757
00:40:43,640 --> 00:40:45,840
they're going jaw to sag to
ball.

758
00:40:45,960 --> 00:40:47,280
So interesting.
Yeah.

759
00:40:47,400 --> 00:40:52,520
So considering it's already
there, Spartan or whoever the

760
00:40:52,520 --> 00:40:54,600
fuck are going to mind this,
whoever's going to own it,

761
00:40:54,760 --> 00:40:56,920
they'll make that decision in
due course.

762
00:40:57,360 --> 00:41:00,640
Could have gone if they they
raise 300 bucks when they're up

763
00:41:00,640 --> 00:41:02,960
at $1.50 they would have bloody
helped them.

764
00:41:03,080 --> 00:41:04,320
They could have had all the
money for it.

765
00:41:04,320 --> 00:41:06,120
Then back of the back 20, up
10%.

766
00:41:06,120 --> 00:41:08,760
Today they went back to 2010.
Yeah, yeah.

767
00:41:09,000 --> 00:41:12,560
And gold price ripped up so.
Yeah, the more cash you raised,

768
00:41:12,560 --> 00:41:14,520
the less likely you are to get
acquired to.

769
00:41:15,800 --> 00:41:22,200
But yeah, maybe, yeah, depends
if someone wants cash.

770
00:41:22,560 --> 00:41:24,800
Yeah, most of them.
Mine is a cashed up, aren't

771
00:41:24,800 --> 00:41:26,560
they?
You just got a deal in there.

772
00:41:26,680 --> 00:41:30,040
And they shouldn't even be
thinking about getting a quad or

773
00:41:30,040 --> 00:41:34,360
should be thinking about mining
it Go mine right.

774
00:41:34,640 --> 00:41:39,080
Say owner Piedmont set to tie
the knot the most it's is it a

775
00:41:39,080 --> 00:41:45,280
bit of a oh fuck all those well
the two of an AVL was it

776
00:41:45,360 --> 00:41:49,240
Australian Vanadium and TM TMT?
Yeah.

777
00:41:49,400 --> 00:41:51,160
Yeah.
Logical merger, yeah.

778
00:41:51,240 --> 00:41:53,520
It's one we were expecting,
that's for sure.

779
00:41:53,720 --> 00:41:55,800
Totally.
Yeah, I'm impressed by your

780
00:41:55,800 --> 00:41:57,400
metallurgy knowledge just gets
better and better.

781
00:41:57,480 --> 00:41:58,600
Thank you.
Thank you, Travis.

782
00:41:59,520 --> 00:42:01,240
Nathan Stordis is like a proud
father.

783
00:42:03,880 --> 00:42:06,480
Yeah, this is so say owner
Piedmont, they're they're tied.

784
00:42:06,480 --> 00:42:08,880
They're not.
And the, the, the details of the

785
00:42:08,880 --> 00:42:11,480
deal kind of emerged about about
30 minutes before we hit hit

786
00:42:11,480 --> 00:42:13,240
record.
So, you know, we got to see

787
00:42:13,240 --> 00:42:16,880
what, what it all looked like.
So they're, they're the deal is

788
00:42:16,880 --> 00:42:19,920
basically both of them, both
companies are going to emerge

789
00:42:19,920 --> 00:42:24,000
with 50% each of of the merge
Co, which is technically the

790
00:42:24,120 --> 00:42:25,600
head Co.
We say owner, but like they're

791
00:42:25,600 --> 00:42:27,280
called on a merge Co, which
means they're going to rename

792
00:42:27,280 --> 00:42:30,360
the company I reckon.
And it will be run by say

793
00:42:30,360 --> 00:42:34,760
owner's CEO at the moment, all
all up, there's 150 million

794
00:42:34,760 --> 00:42:37,560
bucks of new equity in
Australian dollars that is going

795
00:42:37,560 --> 00:42:41,000
to make its way into that pro
forma entity in a, in a somewhat

796
00:42:41,000 --> 00:42:44,560
kind of complicated manner.
Sale sale is launching like a

797
00:42:44,600 --> 00:42:47,160
well, they launched a $40
million capital raise kind of

798
00:42:47,160 --> 00:42:49,600
today.
Piedmont is expected to to do

799
00:42:49,600 --> 00:42:53,440
similar sort of when you know
the markets in the US open.

800
00:42:53,440 --> 00:42:56,800
And then once the merger is
effective with both with you

801
00:42:56,800 --> 00:42:59,960
know about 40 million Australian
each of their respective things

802
00:42:59,960 --> 00:43:01,160
that the two companies going to
merge.

803
00:43:01,160 --> 00:43:05,080
And at that point, RCF has this
conditional placement where

804
00:43:05,080 --> 00:43:08,920
they're going to tip in about 69
million Australian as a

805
00:43:09,120 --> 00:43:11,840
conditional on that.
Into the pro forma.

806
00:43:11,920 --> 00:43:14,960
Into the pro forma.
Have you ever seen anything like

807
00:43:15,000 --> 00:43:17,640
this?
Then another capital raise for

808
00:43:17,640 --> 00:43:18,960
another 22.
Exactly.

809
00:43:19,680 --> 00:43:21,080
Follow on.
Yeah, potential follow on

810
00:43:21,080 --> 00:43:23,800
raising for another 22 1/2 to
come where after that too.

811
00:43:24,160 --> 00:43:26,920
So yeah, have you ever seen that
where both sides of a merger,

812
00:43:26,960 --> 00:43:30,440
both raising money to make a
merger happen?

813
00:43:30,480 --> 00:43:34,000
I haven't.
Seen both sides do it yet and

814
00:43:34,080 --> 00:43:36,840
but I have seen the conditional
raises do do happen a bit

815
00:43:36,840 --> 00:43:39,280
especially with like you know
private equity you'll see Aussie

816
00:43:39,280 --> 00:43:42,120
super do it from time to time in
in mining companies, things like

817
00:43:42,120 --> 00:43:44,000
that, but.
Whatever the North American

818
00:43:44,000 --> 00:43:48,160
equivalent of 601 One is,
colours light they would be so

819
00:43:48,240 --> 00:43:50,000
the brokers would be so happy
over there.

820
00:43:50,440 --> 00:43:53,160
What is the 601 One equivalent
in Canada?

821
00:43:53,960 --> 00:43:55,560
Don't know.
There, there'll be something in

822
00:43:55,560 --> 00:43:58,240
Vancouver there.
Love it.

823
00:43:58,360 --> 00:44:00,240
Yeah.
So you got all this new equity

824
00:44:00,240 --> 00:44:02,280
coming into it.
And there's some obvious

825
00:44:02,560 --> 00:44:05,840
benefits here, not least of
which is just the simplification

826
00:44:05,840 --> 00:44:09,960
of of the North American lithium
ownership dynamic, you know,

827
00:44:09,960 --> 00:44:13,080
100% owned by the same entity.
You don't have that weird off

828
00:44:13,080 --> 00:44:16,640
taking place which you know,
it's just a a big drag on the

829
00:44:16,640 --> 00:44:19,920
complexity and and the way that
investors sort of had any

830
00:44:19,920 --> 00:44:22,880
appetite for either of the
companies really was this quite

831
00:44:22,880 --> 00:44:25,040
onerous off take depending on
what the, you know, lithium

832
00:44:25,040 --> 00:44:27,600
price was at any point in time.
This deal just tidies all of

833
00:44:27,600 --> 00:44:29,040
that up.
So it just makes sense.

834
00:44:29,040 --> 00:44:31,320
It's overdue.
What do you guys think of of

835
00:44:31,320 --> 00:44:33,360
that component?
Yeah, I mean, just to, to add a

836
00:44:33,360 --> 00:44:35,720
couple more points, Maddie, you
mentioned Canada, but it's a bit

837
00:44:35,720 --> 00:44:37,720
funky, very North American
focused.

838
00:44:38,200 --> 00:44:40,880
Headquarters going to be breezy.
They're going to have.

839
00:44:41,120 --> 00:44:44,200
The primary at the moment, yeah.
The primary listing will be ASX.

840
00:44:44,240 --> 00:44:47,360
That makes sense from a from a
capital markets perspective with

841
00:44:47,360 --> 00:44:49,440
a secondary listing on the
NASDAQ.

842
00:44:49,440 --> 00:44:52,560
So not actually the NASDAQ.
Yeah, well, that's where

843
00:44:52,560 --> 00:44:57,160
Piedmont has a listing.
So not actually Canadian listed,

844
00:44:57,160 --> 00:44:59,680
but obviously a very.
Tech fucking on the the.

845
00:44:59,760 --> 00:45:02,320
Tech exchange?
Well is it hunting exchange?

846
00:45:02,320 --> 00:45:04,480
Lithium has a sort of Ave into
EV's.

847
00:45:05,240 --> 00:45:09,960
Get creative.
I mean, I think that sort of

848
00:45:10,240 --> 00:45:12,640
came about from a sort of
Carolina.

849
00:45:12,640 --> 00:45:15,560
They've got an asset in, in the
States there as well.

850
00:45:15,760 --> 00:45:20,840
So and then there's that a
warrior interest as well that

851
00:45:20,840 --> 00:45:23,640
they they said about in in
Africa, the pro.

852
00:45:23,640 --> 00:45:26,800
Forma looks kind of more
interesting with the yeah,

853
00:45:26,880 --> 00:45:29,120
you've got the other like
Carolina got its approvals

854
00:45:29,160 --> 00:45:31,920
recently, you've got the yeah,
the Ghanaian asset, which is

855
00:45:32,440 --> 00:45:34,480
again, there's some, there's
momentum there and you've tied

856
00:45:34,480 --> 00:45:36,280
it up now.
So the pro forma actually kind

857
00:45:36,280 --> 00:45:40,000
of looks interesting ish.
Importantly though, there's

858
00:45:40,000 --> 00:45:43,480
going to be a bunch of kind of
cash in there which buys them

859
00:45:43,480 --> 00:45:45,480
time, right?
In a depressed lithium market

860
00:45:45,480 --> 00:45:49,800
that buys them more time and
also importantly introduces RCF

861
00:45:49,800 --> 00:45:53,960
as like a kind of 10%
shareholder of the pro forma who

862
00:45:54,480 --> 00:45:57,720
is writing a big check, but also
has the ability to write another

863
00:45:57,720 --> 00:45:59,920
big check if they need to buy
more time in the future as well.

864
00:46:00,320 --> 00:46:02,360
Yeah, that that's important.
What do you what do you take of

865
00:46:02,360 --> 00:46:04,640
their role in this, their
involvement?

866
00:46:04,640 --> 00:46:06,120
RCF.
Super interesting.

867
00:46:06,120 --> 00:46:07,960
Like yeah, honestly I find it
really interesting.

868
00:46:07,960 --> 00:46:11,880
I mean, like one of the really
big wins RCF has had in recent

869
00:46:11,880 --> 00:46:16,600
history was, was when Altura was
distressed and Pilgrim Minerals

870
00:46:16,600 --> 00:46:21,080
kind of snivelled it up right
before the right before the

871
00:46:21,200 --> 00:46:23,200
lithium market turned.
It was like a month before

872
00:46:23,440 --> 00:46:26,600
lithium market turned and RCF
kind of cornerstoned big equity.

873
00:46:26,600 --> 00:46:29,800
Like, you know, big equity kind
of cornerstone position there to

874
00:46:29,800 --> 00:46:32,880
help facilitate the acquisition
of voucher.

875
00:46:33,200 --> 00:46:35,800
So everyone really remembers
and, and in like no time, it was

876
00:46:35,800 --> 00:46:39,120
like a three times money on
money and like like 10 months

877
00:46:39,120 --> 00:46:41,880
from memory.
It was just a huge win for for

878
00:46:41,880 --> 00:46:44,840
RCF and so everyone remembers
that in the head.

879
00:46:44,840 --> 00:46:48,000
Big win for RCF that was like
counter cyclical depressed

880
00:46:48,000 --> 00:46:50,520
lithium market.
Big, big, you know,

881
00:46:50,520 --> 00:46:54,040
consolidation kind of equity
like play for them.

882
00:46:54,960 --> 00:46:59,080
This looks similarish lithium
markets beaten up the you know,

883
00:46:59,080 --> 00:47:02,240
there's two logical companies
kind of coming together helps

884
00:47:02,240 --> 00:47:05,320
them sort of buy more time.
Hopefully the cycle picks up and

885
00:47:05,320 --> 00:47:08,800
makes the equity kind of look,
you know, attractive over time.

886
00:47:09,160 --> 00:47:11,800
No one can really time when the
market turns perfectly.

887
00:47:11,800 --> 00:47:14,120
But, you know, I'm sure, I'm
sure everyone who's been a part

888
00:47:14,120 --> 00:47:16,320
of that deal is sort of
thinking, I hope this is like

889
00:47:16,320 --> 00:47:18,560
the, you know, Pillbra gobbling
up Altura sort of play.

890
00:47:18,840 --> 00:47:23,200
Yeah, and it's it's whoever can
survive if there is a turn, it's

891
00:47:23,200 --> 00:47:26,120
like you start getting paid for
Strider.

892
00:47:26,120 --> 00:47:28,000
Why?
And specifically on North

893
00:47:28,000 --> 00:47:31,920
American lithium, the asset, it
was hindered by the by the

894
00:47:31,920 --> 00:47:35,720
structure it was in with the,
the economics there and the sort

895
00:47:35,720 --> 00:47:38,280
of skewed off take and
ownership.

896
00:47:38,560 --> 00:47:42,760
So yeah, hopefully this can,
this will clear that all up and

897
00:47:42,760 --> 00:47:46,080
they can just focus on getting
those recoveries out, getting

898
00:47:46,120 --> 00:47:48,680
yeah, getting the asset.
They're still going to be losing

899
00:47:49,000 --> 00:47:51,000
free cash flow on it at the
current lithium prices.

900
00:47:51,000 --> 00:47:55,080
But yeah, you know, they've got
greater capability to last

901
00:47:55,080 --> 00:47:56,840
longer in the cycle.
Now what's happening with

902
00:47:56,880 --> 00:48:00,560
Mublin?
Development asset, I mean, yeah,

903
00:48:00,640 --> 00:48:02,080
I.
Mean on us Pardon.

904
00:48:03,160 --> 00:48:06,960
Definitely is, yeah.
Permitting will be the the

905
00:48:06,960 --> 00:48:08,920
challenge.
I mean, financing won't be a

906
00:48:08,920 --> 00:48:12,240
walk in the park in this market
either, but permitting's been

907
00:48:12,240 --> 00:48:14,640
the big impediment.
It's actually an attractive

908
00:48:14,640 --> 00:48:17,080
asset, but yeah, permitting's
the big challenge there.

909
00:48:17,240 --> 00:48:19,800
Grade is much, much better than
North American Lithium, though.

910
00:48:19,920 --> 00:48:21,720
Once in production, once not,
obviously, yeah.

911
00:48:22,400 --> 00:48:25,840
So, yeah, I mean they just need
to get the costs down at North

912
00:48:25,840 --> 00:48:29,840
American Lithium to in the
ballpark of the DFS that came

913
00:48:29,840 --> 00:48:34,400
out in I think April 2023 is
right now they're nowhere near

914
00:48:34,400 --> 00:48:36,440
that.
And also get the the revenue up.

915
00:48:36,440 --> 00:48:38,520
There's been a period of sort of
qualifying the product and all

916
00:48:38,520 --> 00:48:41,160
those things.
So just to make it, you know, go

917
00:48:41,160 --> 00:48:44,360
from a cash bleeding asset to
something that's closer to break

918
00:48:44,360 --> 00:48:47,720
even, that'll be that'll be, you
know, first item on the shopping

919
00:48:47,720 --> 00:48:48,720
list.
Very.

920
00:48:48,720 --> 00:48:52,120
Good, that's it.
That's a wrap.

921
00:48:52,400 --> 00:48:55,640
It's funny that.
What did you say yesterday,

922
00:48:55,640 --> 00:48:59,000
Trevor?
Oh I'm so not interested in

923
00:48:59,000 --> 00:49:01,960
lithium anymore.
The the the.

924
00:49:02,840 --> 00:49:04,160
Market.
Yeah.

925
00:49:04,480 --> 00:49:08,440
The the future and oh, we've got
a lithium deal.

926
00:49:12,240 --> 00:49:15,640
We'll see what comes to it.
You know, it's a better time to

927
00:49:15,640 --> 00:49:16,800
do a deal than it was a year
ago.

928
00:49:18,400 --> 00:49:20,080
I mean, more particularly if you
if you ask.

929
00:49:20,080 --> 00:49:23,120
Yeah.
Mate, I reckon I'll know who was

930
00:49:23,120 --> 00:49:26,360
behind that.
Someone that moved over to North

931
00:49:26,360 --> 00:49:28,640
America recently.
Interesting.

932
00:49:28,760 --> 00:49:34,040
We'll share that one off air.
He's a JC, he's a JC.

933
00:49:34,040 --> 00:49:35,760
He is indeed if.
You're listening and you know

934
00:49:35,760 --> 00:49:39,560
who I'm talking about.
You're a JC, Mr Person.

935
00:49:40,680 --> 00:49:42,400
Jay.
Speaking of JC, he's been to a

936
00:49:42,400 --> 00:49:44,360
mining services absolutely jam
packed.

937
00:49:44,360 --> 00:49:50,120
Every bloody truck and digger is
full of a JCMMS grounded heading

938
00:49:50,120 --> 00:49:53,160
to Canada Crossbair.
This is in the name Crowded

939
00:49:53,160 --> 00:49:56,560
construction, Yeah.
Have we mentioned?

940
00:49:56,560 --> 00:49:57,680
That yet I.
Don't know.

941
00:49:58,440 --> 00:50:00,200
Grounded control.
There you go.

942
00:50:02,200 --> 00:50:05,800
Oh cross boundary energy.
See if it grant support, CR

943
00:50:05,800 --> 00:50:09,480
insurance, Gaydrill, dice sat
and hoodoo money mods.

944
00:50:11,080 --> 00:50:13,640
Information contained in this
episode of Money of Mine is of

945
00:50:13,640 --> 00:50:15,720
general nature only and does not
take into account the

946
00:50:15,720 --> 00:50:19,320
objectives, financial situation,
or needs of any particular

947
00:50:19,320 --> 00:50:21,360
person.
Before making any investment

948
00:50:21,360 --> 00:50:24,400
decision, you should consult
with your financial advisor and

949
00:50:24,400 --> 00:50:27,560
consider how appropriate the
advice is to your objectives,

950
00:50:27,760 --> 00:50:29,760
financial situation and needs.