What’s MinRes Scheming in Mauritania?

1
00:00:00,080 --> 00:00:05,120
Righto money miners bait a
couple of pre quarters, we've

2
00:00:05,120 --> 00:00:08,160
got bloody Capricorn, we've got
WAFF, we've got a bit of bloody

3
00:00:08,160 --> 00:00:10,480
in the weeds about what's going
on in Japan.

4
00:00:10,480 --> 00:00:15,080
But the big story today is
what's Min Res up to in

5
00:00:15,080 --> 00:00:19,200
Mauritania, which is a place
that looks like Mars a bit.

6
00:00:19,720 --> 00:00:21,000
Well said Maddie.
You knowed it.

7
00:00:21,120 --> 00:00:24,640
You did not know that was a
country, Maddie, until a few

8
00:00:24,640 --> 00:00:26,920
months ago.
But I did know that MMS is a

9
00:00:26,920 --> 00:00:30,200
company.
And and and what are people up

10
00:00:30,200 --> 00:00:33,400
to not calling MMS for a
contract at the moment?

11
00:00:33,440 --> 00:00:36,800
Like it's bloody absurd.
I'm sure they are.

12
00:00:36,800 --> 00:00:39,800
But if if you haven't take
action right now, get them

13
00:00:39,800 --> 00:00:44,160
moving your open pit dirt ASAP.
And we're talking about a couple

14
00:00:44,160 --> 00:00:48,480
today that could probably use
some experts advice from MMS.

15
00:00:48,720 --> 00:00:50,560
Get on board.
Get on board boys.

16
00:00:50,560 --> 00:00:56,480
What the hell is going on with
Min Rez venturing to potentially

17
00:00:56,480 --> 00:00:59,040
Mauritania?
Maddie, this is bloody

18
00:00:59,040 --> 00:01:01,240
interesting.
I I didn't know if there was a a

19
00:01:01,240 --> 00:01:04,160
sort of story here to sort of
piece together, but we've had

20
00:01:04,160 --> 00:01:06,760
information sort of come at us
over the past.

21
00:01:06,760 --> 00:01:09,360
What do you reckon, Trevor?
Couple months or so We yeah,

22
00:01:09,360 --> 00:01:11,400
we've just been a bit in the
word on the decline a few months

23
00:01:11,400 --> 00:01:12,760
ago now it.
Was first year in the in the

24
00:01:12,760 --> 00:01:14,600
director's special word on the
decline a couple months ago, so

25
00:01:14,600 --> 00:01:16,680
if this is the first time you're
hearing about it, just give

26
00:01:16,680 --> 00:01:19,440
yourself an uppercut.
I like how you've started saying

27
00:01:19,440 --> 00:01:21,360
that.
So we're going to label this one

28
00:01:21,360 --> 00:01:25,480
as Part 1 of the The Min Res in
Mauritania adventure, because

29
00:01:25,840 --> 00:01:27,520
it's not the whole story.
They're going to be more to it,

30
00:01:27,720 --> 00:01:29,200
frankly.
Yet you can only find out so

31
00:01:29,200 --> 00:01:32,440
much in a good few hours of
digging, and this one's got legs

32
00:01:32,440 --> 00:01:34,520
to it.
So to start with, none of this

33
00:01:34,520 --> 00:01:37,040
stuff has been publicly
disclosed by Minrez.

34
00:01:37,040 --> 00:01:40,320
There are no mentions of
Mauritania in any of Minrez's

35
00:01:41,120 --> 00:01:44,120
recent announcements or any that
I could find back in history.

36
00:01:44,120 --> 00:01:47,680
So what we're going to sort of
lay out is our kind of theory of

37
00:01:47,680 --> 00:01:50,720
Minrez wanting to get involved.
We don't know the exact form

38
00:01:50,720 --> 00:01:53,520
that that is going to take, but
we've sort of had it confirmed

39
00:01:53,520 --> 00:01:55,800
that they are definitely
interested.

40
00:01:55,920 --> 00:01:58,760
Maybe that takes the shape of a
mining services contract, maybe

41
00:01:59,040 --> 00:02:00,760
some sort of ownership interest,
who really knows.

42
00:02:00,760 --> 00:02:04,160
It's a bit open ended, but why
don't we start with a bit of a

43
00:02:04,280 --> 00:02:08,199
lay of the land of where and
what Mauritania is what is out

44
00:02:08,280 --> 00:02:10,880
what?
Is it JD, our African expert

45
00:02:11,000 --> 00:02:13,920
might give us bloody the
Mauritania round?

46
00:02:13,920 --> 00:02:15,800
As we learned before recording,
it's not Mauritius.

47
00:02:16,080 --> 00:02:18,280
Yeah, no different.
That's over in the Indian Ocean

48
00:02:18,280 --> 00:02:20,440
on the east.
We're talking West Africa here.

49
00:02:21,160 --> 00:02:22,320
Sorry.
Mauritania, that's making

50
00:02:22,320 --> 00:02:26,840
ourselves very, very proud here.
So Mauritania is in West Africa,

51
00:02:27,120 --> 00:02:30,400
north of Senegal, South of
Morocco out there, it's West of

52
00:02:30,480 --> 00:02:32,760
Mali.
Yeah, I guess you just like

53
00:02:32,800 --> 00:02:35,120
it's, it's everywhere.
You could say that, yeah, so

54
00:02:35,240 --> 00:02:39,240
sparsely populated, kind of like
Namibia in a sense of desert

55
00:02:39,240 --> 00:02:40,920
like landscape.
Sparsely populated.

56
00:02:40,920 --> 00:02:44,360
There's only a bit under 5
million people that live in the

57
00:02:44,360 --> 00:02:46,880
country.
GDP of US 10 1/2 billion

58
00:02:46,880 --> 00:02:50,080
dollars, with mining
contributing over 30% to that

59
00:02:50,080 --> 00:02:52,200
GDP.
Is it is it classed as the

60
00:02:52,200 --> 00:02:56,600
Sahara Desert or that's?
Yeah, the the eastern part of

61
00:02:56,600 --> 00:02:59,280
the country is very much the the
Sahara desert.

62
00:02:59,400 --> 00:03:01,520
OK, Yeah.
And just one look on Google Maps

63
00:03:01,520 --> 00:03:04,000
and you can get a feel for that,
so.

64
00:03:04,000 --> 00:03:06,000
What about mining there mate?
Like are there any operating

65
00:03:06,000 --> 00:03:07,560
mines?
There are there are a good few

66
00:03:07,560 --> 00:03:12,640
operations so Kinross operate
the Tassieste gold mine 620,000

67
00:03:12,640 --> 00:03:16,160
oz per annum.
That is not a small mine by any

68
00:03:16,160 --> 00:03:20,600
stretch of the imagination.
Then you've got Snim who are the

69
00:03:21,160 --> 00:03:25,720
government miner, so as far as I
could find out, 78% roughly

70
00:03:25,800 --> 00:03:29,040
owned by the government.
And then you've got a sort of

71
00:03:29,040 --> 00:03:33,560
consortium of development banks
and other sort of Arabic wealth

72
00:03:33,560 --> 00:03:37,600
groups that make up the the rest
of the ownership group there.

73
00:03:37,600 --> 00:03:41,320
So they were formed 50 plus
years ago and they're

74
00:03:41,320 --> 00:03:44,440
responsible for mining roughly
14,000,000 tonnes per annum.

75
00:03:44,440 --> 00:03:49,160
I think that was a 2023 figure
of iron ore from the sort of

76
00:03:49,640 --> 00:03:54,440
central north of the country.
So iron has been mined here

77
00:03:54,440 --> 00:03:58,160
since the 60s.
They built a long iron along

78
00:03:58,160 --> 00:04:01,600
railway track that stretches
over 700 kilometres.

79
00:04:01,600 --> 00:04:08,040
Started construction in 1960.
Was moving moving dirt by 1963.

80
00:04:08,120 --> 00:04:13,040
So there's a rail, there's a
port, and this rail has its own

81
00:04:13,040 --> 00:04:15,480
kind of exotic fanfare, You told
me.

82
00:04:15,560 --> 00:04:18,480
It does very, it's got its own
like Wikipedia page and stuff.

83
00:04:18,480 --> 00:04:20,320
So people just jump on on the
dirt.

84
00:04:20,399 --> 00:04:23,160
They even actually hook on a a
tourist sort of cart at times

85
00:04:23,160 --> 00:04:24,960
that had a bit of a hiatus for
10 odd years.

86
00:04:25,520 --> 00:04:28,520
But you've also got sort of
local people, merchants and

87
00:04:28,520 --> 00:04:31,280
stuff who just they sit on top
of the the dirt there.

88
00:04:31,280 --> 00:04:32,840
From the on the carriages and
just.

89
00:04:32,840 --> 00:04:35,880
Yeah, over 40° during the day,
freezing overnight and stuff.

90
00:04:35,880 --> 00:04:38,280
Just proper, proper wild stuff.
So you can see all these photos

91
00:04:38,280 --> 00:04:41,560
of people sort of adventure.
Tourists poked on top of the

92
00:04:41,560 --> 00:04:46,000
iron ore in the in the carts in
the middle of nowhere or Ubers,

93
00:04:47,240 --> 00:04:49,800
you could call it that.
So just to round out on the the

94
00:04:49,800 --> 00:04:51,880
other operations, you've also
got first quantum there.

95
00:04:51,880 --> 00:04:56,120
They're producing copper, gold
and and magnetite from Guleb

96
00:04:56,240 --> 00:05:00,680
Migraine.
So and you've also got BHB

97
00:05:00,680 --> 00:05:04,960
offshore in in to round out on
the sort of natural resource

98
00:05:05,000 --> 00:05:07,160
exploitation.
And then new country U ball

99
00:05:07,160 --> 00:05:08,640
mates.
That's where Aura Energies

100
00:05:08,640 --> 00:05:09,920
project is.
That's right.

101
00:05:09,920 --> 00:05:13,400
That's out in the northeast.
Exactly, Maddie.

102
00:05:13,760 --> 00:05:17,280
So the iron ore operations, this
is obviously of importance

103
00:05:17,280 --> 00:05:20,520
because this is where minres are
interested in the country.

104
00:05:20,520 --> 00:05:22,600
Like I said, started mining in
the 60s.

105
00:05:22,600 --> 00:05:24,320
They've been mining for for
quite a while.

106
00:05:24,800 --> 00:05:28,400
The like you said Trav, they've
got a, a good port city out in

107
00:05:28,400 --> 00:05:31,960
the very sort of northwestern
corner of of the country there.

108
00:05:31,960 --> 00:05:36,440
So the infrastructure is in
place and the plans that I'll go

109
00:05:36,440 --> 00:05:38,520
through that were sort of
throughout the 20 tens people

110
00:05:38,520 --> 00:05:41,760
trying to get some mines online
were very much piggybacking off

111
00:05:41,760 --> 00:05:47,200
the infrastructure that SNIM is
state owned mining group owns.

112
00:05:47,840 --> 00:05:49,440
Interesting, very interesting
mate.

113
00:05:49,440 --> 00:05:54,440
There's like there's a bit of a,
a long history of a magnetite

114
00:05:54,440 --> 00:05:59,080
project that was Once Upon a
time in ASX companies project

115
00:05:59,280 --> 00:06:02,360
that is is a long story.
I have not done the work on it,

116
00:06:02,360 --> 00:06:05,000
but you have.
Yeah, So I got got busy.

117
00:06:05,040 --> 00:06:07,440
This is probably what the the
bulk of my attention was focused

118
00:06:07,440 --> 00:06:11,400
on today diving into this.
So the the story sort of picks

119
00:06:11,400 --> 00:06:14,560
up in 2010.
This was a takeover that I've

120
00:06:14,560 --> 00:06:18,280
never heard about.
So this company, Sphere Minerals

121
00:06:18,960 --> 00:06:23,480
got a received a bid from
Xstrata in late 2010.

122
00:06:23,480 --> 00:06:26,040
And here we'll Chuck up a
headline from the Australian

123
00:06:26,040 --> 00:06:28,400
Financial Review from Luke
Forrester.

124
00:06:28,400 --> 00:06:30,080
He's sort of known in WA mining
circle.

125
00:06:31,720 --> 00:06:33,760
He's just going on to bigger and
better things, Loki.

126
00:06:33,840 --> 00:06:37,400
With a cracking headline hurdle
to X stratosphere.

127
00:06:37,400 --> 00:06:40,560
So what he was referring to was.
That's good.

128
00:06:40,800 --> 00:06:45,880
Was Sing Tang Developments, this
Singaporean based group trying

129
00:06:45,880 --> 00:06:49,160
to stifle the deal of X Strata
taking out Sphere?

130
00:06:49,160 --> 00:06:53,480
So they chucked in a sort of
circa $430 million deal.

131
00:06:53,840 --> 00:06:56,120
These guys bought in a sort of
blocking stake.

132
00:06:56,360 --> 00:06:59,920
X Strata then came and upped
their bid by 20% to a total of

133
00:06:59,920 --> 00:07:03,840
$514 million.
They were stuck at sort of 76%

134
00:07:03,840 --> 00:07:07,800
ownership for a little while and
then, you know, there's a bit of

135
00:07:07,800 --> 00:07:09,560
a rush, rough patch in
commodities.

136
00:07:09,560 --> 00:07:12,120
Sing Tangs sell down a bit of
their stake, but ultimately

137
00:07:12,120 --> 00:07:14,440
Xstrata is stuck at about 88%
ownership.

138
00:07:14,720 --> 00:07:17,600
Runs me a little bit of ERA.
There's more commonalities later

139
00:07:17,600 --> 00:07:22,000
on, but from about 2012 until
they completed a compulsory

140
00:07:22,000 --> 00:07:26,000
acquisition almost sort of, you
know, 20 sort of 16 errors when

141
00:07:26,000 --> 00:07:28,000
they finished it.
So from the first bid took him

142
00:07:28,000 --> 00:07:31,160
six years to wrap up.
So that wow did not go as smooth

143
00:07:31,160 --> 00:07:32,160
as I think they would have
liked.

144
00:07:32,160 --> 00:07:35,200
So that last two.
Percent took him like four years

145
00:07:35,200 --> 00:07:37,280
to etch up enough to actually.
Get, yeah.

146
00:07:37,840 --> 00:07:41,760
So the announcements to the
market become pretty space from

147
00:07:42,600 --> 00:07:45,520
2011 kind of onward.
You just get the regular kind of

148
00:07:45,800 --> 00:07:49,480
quarterly announcement and then
the odd update on the iron ore

149
00:07:49,480 --> 00:07:51,240
projects that they that they
hold.

150
00:07:51,240 --> 00:07:54,440
Yeah, but of course Xstrata
didn't stay Xstrata forever.

151
00:07:54,760 --> 00:07:58,880
So 2013 is when the Xstrata
Glencore deal wraps up and you

152
00:07:58,880 --> 00:08:02,920
can sort of see from the 2011 to
2013 announcements under Sphere,

153
00:08:02,920 --> 00:08:06,920
it just says a subsidiary of
Xstrata and that just says a

154
00:08:06,920 --> 00:08:09,640
subsidiary of Glencore for the
remaining three years of the

155
00:08:09,640 --> 00:08:11,880
company's life.
What did?

156
00:08:11,920 --> 00:08:15,400
What did like?
What actual projects were in

157
00:08:15,440 --> 00:08:18,240
Sphere's portfolio?
So there's three kind of

158
00:08:18,240 --> 00:08:21,480
interest, 2 in particular.
So obviously all iron ore

159
00:08:21,760 --> 00:08:24,840
projects.
So the first one is Guelb El

160
00:08:24,920 --> 00:08:27,160
Ouch.
That is the biggest of the lot.

161
00:08:27,160 --> 00:08:31,880
That's a 5050 JV with SNIM, the
state owned miner.

162
00:08:31,880 --> 00:08:34,039
So they're initially sort of
talking about up to 30 million

163
00:08:34,039 --> 00:08:36,360
tonnes per annum.
That's a sort of scoping level

164
00:08:36,360 --> 00:08:39,320
type numbers.
Then you've got ASCAF, that

165
00:08:39,480 --> 00:08:41,400
became the most developed of the
lot.

166
00:08:41,400 --> 00:08:43,880
This is a sort of magnetite
quartzite operation.

167
00:08:44,480 --> 00:08:46,680
It started at 100% by sort of
2012.

168
00:08:46,840 --> 00:08:50,400
They own 90% of this project.
Is that is that producing or are

169
00:08:50,400 --> 00:08:52,720
these all development projects?
At the time of the takeover,

170
00:08:52,720 --> 00:08:54,320
these are all development
projects.

171
00:08:54,320 --> 00:08:57,360
Yeah.
And then lastly, you've got LEB,

172
00:08:58,560 --> 00:09:01,880
Lebthenia, say.
So that one actually sits, you

173
00:09:01,880 --> 00:09:03,600
know, a slightly different part
of the country.

174
00:09:03,600 --> 00:09:06,760
You can see on the map here that
one sits closer to the Kinross's

175
00:09:07,720 --> 00:09:11,840
goldmine as opposed to in the
sort of central N next to SNIMS

176
00:09:11,840 --> 00:09:15,560
other operating mines.
We've heard for years that like

177
00:09:17,000 --> 00:09:19,880
Glencore would love to have, you
know, an established kind of

178
00:09:19,880 --> 00:09:24,680
trading business in iron ore 11
kind of one medal that trades a

179
00:09:24,680 --> 00:09:28,040
lot that they don't really have
a presence in a big presence in.

180
00:09:28,480 --> 00:09:31,400
So I imagine these mines would
have like built developing these

181
00:09:31,400 --> 00:09:33,280
mines would have been like a
priority for them it.

182
00:09:33,280 --> 00:09:36,080
Sure was mate.
And they got so, so close.

183
00:09:36,080 --> 00:09:40,960
So let's start with ASCAF.
Not quite as big as Elouge, like

184
00:09:40,960 --> 00:09:45,080
I said, but it was ahead of that
mine in its development.

185
00:09:45,080 --> 00:09:49,960
So by April 2014 it had received
final investment decision.

186
00:09:50,000 --> 00:09:53,480
I know it's sitting over US $110
a tonne.

187
00:09:54,200 --> 00:09:56,800
They are planning to build an
operation that will produce 7

188
00:09:56,800 --> 00:10:00,240
million tonnes per annum.
US $900 million construction

189
00:10:00,240 --> 00:10:03,920
cost, production to start at the
beginning of 2017.

190
00:10:04,280 --> 00:10:07,520
Glencore within a month or so
agrees with Essar.

191
00:10:07,520 --> 00:10:11,760
That's a UAE based contractor, a
deal to construct the mine that

192
00:10:11,760 --> 00:10:15,760
will they that contract was for
sort of circa US $600 million.

193
00:10:16,520 --> 00:10:18,040
Then in May, this is very
important.

194
00:10:18,040 --> 00:10:22,920
In May of 2014, they agree an 18
year deal with the state miner

195
00:10:23,160 --> 00:10:26,200
for the right to use the rail
and port. 18 years, starting

196
00:10:26,200 --> 00:10:28,000
2014.
Yeah, which?

197
00:10:28,720 --> 00:10:32,640
Yeah, we'd get there after 2032.
From first or so that would have

198
00:10:32,640 --> 00:10:34,560
started 2017.
Gotcha, gotcha.

199
00:10:35,040 --> 00:10:36,920
Yeah.
And that's sort of got a take or

200
00:10:36,920 --> 00:10:39,680
pay component as a part of that
deal.

201
00:10:40,160 --> 00:10:43,280
Now at the same time, you've got
the bigger operation progressing

202
00:10:43,280 --> 00:10:46,280
through 20/12/13.
They're working on the PFS June

203
00:10:46,280 --> 00:10:49,400
2014 that comes out.
They're talking about these

204
00:10:49,400 --> 00:10:53,520
modules, which is sort of trains
or stages if you'd like, each

205
00:10:53,520 --> 00:10:55,520
being nine and a half million
tonnes per annum.

206
00:10:55,520 --> 00:10:58,600
So on a single module, nine and
a half million tonnes per annum,

207
00:10:58,600 --> 00:11:02,200
that'd be an over 200 year mine
life, or at 45,000,000 tonnes

208
00:11:02,200 --> 00:11:05,760
per annum, a very big mine,
that'd be over a 40 year mine

209
00:11:05,760 --> 00:11:08,080
life.
So the the initial phase was for

210
00:11:08,080 --> 00:11:11,440
two of these modules and they'd
be producing a centre feed

211
00:11:11,760 --> 00:11:13,880
product from the magnetite ore
that they're mining there,

212
00:11:14,240 --> 00:11:18,920
beneficiating that to produce
66% I'm concentrate using a sort

213
00:11:18,920 --> 00:11:23,360
of dry magnetic separation.
This is the LA which project?

214
00:11:23,360 --> 00:11:24,520
That's right.
That's right.

215
00:11:24,520 --> 00:11:27,160
That's an enormously long mine
life.

216
00:11:27,160 --> 00:11:28,360
It's giant resource.
Wow.

217
00:11:28,560 --> 00:11:30,200
Huge.
So the next step for that one.

218
00:11:30,760 --> 00:11:32,560
Hang on, hang on.
Do you say using dry magnetic

219
00:11:32,560 --> 00:11:36,080
separation?
So, so, so it's entirely, it's

220
00:11:36,080 --> 00:11:38,520
an entirely dry process for
magnetite.

221
00:11:38,800 --> 00:11:42,720
That, that is right.
So this is came out 10 years ago

222
00:11:42,720 --> 00:11:45,240
and it's a bit of a unique
proposition.

223
00:11:45,240 --> 00:11:49,120
And then there was further work
which I've touched on by Asenko,

224
00:11:49,280 --> 00:11:53,440
the engineering firm to they,
they sort of optimised and

225
00:11:53,440 --> 00:11:55,440
refined that and that the
ultimate numbers that they came

226
00:11:55,440 --> 00:11:58,800
out a year later in the
feasibility study were a bit

227
00:11:58,800 --> 00:12:01,880
tweaked, which I'll touch on.
But you're right, it's a bit of

228
00:12:01,880 --> 00:12:05,720
a different style operation or
processing technique.

229
00:12:05,720 --> 00:12:09,280
And you can see in that the
photos here that's it's right

230
00:12:09,800 --> 00:12:12,960
around this sort of hill or kind
of peak situated.

231
00:12:12,960 --> 00:12:16,120
It's pretty pretty sort of
rugged and wild landscape where

232
00:12:16,120 --> 00:12:17,680
they were sort of proposing to
build this.

233
00:12:18,040 --> 00:12:21,080
Is that, is that hill, Leo?
Yeah, yeah.

234
00:12:21,120 --> 00:12:24,280
So it's just a big bloody just
RIP the guts out of a good strip

235
00:12:24,280 --> 00:12:24,760
brush.
Yeah.

236
00:12:24,760 --> 00:12:27,640
It's amazing how you kind of
don't need to be a genius to

237
00:12:27,640 --> 00:12:29,680
discover these things.
Hey, it's like there.

238
00:12:31,240 --> 00:12:34,000
Complete logistical operations
and if you've got the the train

239
00:12:34,000 --> 00:12:36,280
line and all that and the port
built, then yeah, you're kind of

240
00:12:36,280 --> 00:12:38,680
halfway there, but.
I want to see someone blow that

241
00:12:38,680 --> 00:12:41,640
whole thing up at once because
it could be done.

242
00:12:41,800 --> 00:12:45,320
It's got a free face.
Just just send it everywhere and

243
00:12:45,320 --> 00:12:48,240
just dig the bastard up for 200.
Years it could be done.

244
00:12:48,240 --> 00:12:50,360
You have to look at the on
Google Maps what the other

245
00:12:50,360 --> 00:12:52,520
operations look like from from
above.

246
00:12:52,520 --> 00:12:55,040
They just look completely wild.
They're just a, a much, much

247
00:12:55,920 --> 00:12:58,800
darker sort of composition.
And then you can, if you zoom in

248
00:12:58,800 --> 00:13:01,920
enough, you can see these big,
big pits that have been dug in.

249
00:13:01,920 --> 00:13:04,880
It's completely widened.
Like the the story of the

250
00:13:04,880 --> 00:13:06,840
discovery of these was, you
know, it had a bit of Lang

251
00:13:06,840 --> 00:13:10,440
Hancock to it.
People flying over and seeing

252
00:13:10,440 --> 00:13:13,160
all the the measurements and
stuff being tweaked by the

253
00:13:13,400 --> 00:13:17,880
magnetic magnetic sort of from
the awe, kind of similar to Lang

254
00:13:17,880 --> 00:13:21,000
flying over and seeing the the
glistening of the magnetite sort

255
00:13:21,000 --> 00:13:22,480
of awe and the Hammersley range
and stuff.

256
00:13:22,760 --> 00:13:24,720
That's actually, I wouldn't have
predicted that the cross section

257
00:13:24,720 --> 00:13:26,880
would look like that, but
admittedly I haven't looked at

258
00:13:26,880 --> 00:13:28,600
many cross sections of final
projects.

259
00:13:29,240 --> 00:13:32,320
But that's interesting how the
wall literally like does look

260
00:13:32,320 --> 00:13:34,440
like AV shape.
Yeah, and imagine you have sort

261
00:13:34,440 --> 00:13:37,640
of cover, sort of blowing over
and stuff, but super, super

262
00:13:37,640 --> 00:13:39,960
interesting.
But this is not a good time to

263
00:13:39,960 --> 00:13:43,080
be in the iron ore market.
Everything comes to a screeching

264
00:13:43,080 --> 00:13:45,120
halt.
And like if you guys just think

265
00:13:45,120 --> 00:13:48,200
about what's happened in lithium
in the past year, like it's not

266
00:13:48,200 --> 00:13:51,120
quite of the same scale, but
it's just as dramatic in terms

267
00:13:51,120 --> 00:13:55,360
of the impact that it has had on
the operations, people trying to

268
00:13:55,360 --> 00:13:57,560
come into production.
So at the beginning of 2014,

269
00:13:58,120 --> 00:14:02,760
you're looking at AUS $130.00
price for 62% iron ore finishes

270
00:14:02,760 --> 00:14:07,520
the year around US $70.00.
That is just disastrous for a

271
00:14:07,520 --> 00:14:10,880
project like this that they've
just pressed go on and starting

272
00:14:10,880 --> 00:14:13,640
to to build the thing by the end
of next year, the next year,

273
00:14:13,640 --> 00:14:16,960
2015, it's closer to US, 40
bucks a tonne.

274
00:14:17,520 --> 00:14:19,560
That's right.
It probably is like in a way as

275
00:14:19,560 --> 00:14:22,840
dramatic as lithium in terms of
a lot the margin like it, it

276
00:14:22,880 --> 00:14:25,600
like in terms of the operating
costs of like pretty, you know,

277
00:14:25,600 --> 00:14:28,320
effectively goes back to 100%
like even.

278
00:14:28,400 --> 00:14:32,040
Yeah.
So it's, it's not a 90% drop off

279
00:14:32,120 --> 00:14:34,960
in price, but it's just as
disastrous for for the

280
00:14:34,960 --> 00:14:38,640
operations going around.
And in October 2014, this is

281
00:14:38,640 --> 00:14:43,320
only a handful of months later,
Sphere IE Glencore come out with

282
00:14:43,320 --> 00:14:45,920
an update and say in light of
prevailing market conditions,

283
00:14:45,920 --> 00:14:48,960
ASCAF will slow down.
So they completely pulled the

284
00:14:48,960 --> 00:14:52,040
pin less than a month later
they're demobilising the

285
00:14:52,040 --> 00:14:54,720
contractor.
The early 2015 there's a big

286
00:14:55,000 --> 00:14:58,200
impairment on the assets and
it's all kind of done and dusted

287
00:14:58,200 --> 00:15:01,080
after the the big build up to
actually mining the thing.

288
00:15:01,480 --> 00:15:05,040
The media had reported that
Glencorp had paid US $1 billion

289
00:15:05,280 --> 00:15:09,840
to the state owned miner for the
right to use the port and rail

290
00:15:09,840 --> 00:15:11,920
facilities.
And I sort of said at the time,

291
00:15:11,920 --> 00:15:14,200
this is a bit opaque, but they
could still be on the hook given

292
00:15:14,200 --> 00:15:15,760
a sort of take or pay, so.
Take a pay.

293
00:15:15,760 --> 00:15:18,960
So they'd have to, if they
didn't utilise this capacity,

294
00:15:18,960 --> 00:15:21,400
they've got to pay for it still.
Yeah, yeah, yeah.

295
00:15:21,400 --> 00:15:23,440
So.
Not much more you could find

296
00:15:23,440 --> 00:15:27,080
out.
But on the other operation, the

297
00:15:27,080 --> 00:15:31,600
bigger one, again like I said,
Asynco shared a couple different

298
00:15:31,600 --> 00:15:33,640
numbers.
They spoke about after a bit of

299
00:15:33,640 --> 00:15:36,160
optimization 11 and a half
million tonnes per annum phase

300
00:15:36,160 --> 00:15:39,840
one with the potential to double
that to about 22 million tonnes

301
00:15:39,840 --> 00:15:44,800
per annum using both stages.
And if for whatever reason you

302
00:15:44,800 --> 00:15:47,080
want to look back into it, you
can see it at this point in time

303
00:15:47,080 --> 00:15:51,040
Glencore start referring to
EMCEMC is just a joint venture

304
00:15:51,200 --> 00:15:54,760
the 5050 deal between Glencore
and the state owned miner.

305
00:15:55,320 --> 00:15:57,560
So that's.
Over the El Ayouge project.

306
00:15:57,640 --> 00:15:59,800
That's right.
Not over ASCAF, just over the

307
00:15:59,800 --> 00:16:00,880
bigger project.
Yeah.

308
00:16:00,880 --> 00:16:02,400
So that's what you start hearing
quoted.

309
00:16:02,720 --> 00:16:05,920
More and more and at 11.5
million times around in phase

310
00:16:05,920 --> 00:16:09,360
one, Yeah, gotcha still.
Long, long mine life as well.

311
00:16:09,360 --> 00:16:13,640
And then late 2015, Glencore get
a bit tired of Sphere being a

312
00:16:13,640 --> 00:16:15,680
public company.
There's just three major

313
00:16:15,680 --> 00:16:19,680
shareholders, Glencore about
88%, Qatar Steel and Sing Tang

314
00:16:19,680 --> 00:16:21,480
who's still just hanging in
there.

315
00:16:22,160 --> 00:16:26,200
But Sphere, OK, again, Glencore
launch a rights issue.

316
00:16:26,200 --> 00:16:28,920
And the other two, this is the
very bottom of the commodity

317
00:16:28,920 --> 00:16:30,800
market.
Those guys have got no interest

318
00:16:30,800 --> 00:16:33,520
in participating.
So Glencore lift their interest

319
00:16:33,520 --> 00:16:38,160
to 97 1/2% and take do a
compulsory takeover and take it

320
00:16:38,160 --> 00:16:40,280
out.
ERA analogy.

321
00:16:40,680 --> 00:16:45,000
Exactly, very much so.
So Sphere then released the the

322
00:16:45,000 --> 00:16:48,000
feasibility study sort of
confirming a bit over 11,000,000

323
00:16:48,000 --> 00:16:52,800
tonne random capacity, but they
sort of put in the line which

324
00:16:52,800 --> 00:16:55,640
you don't see all that often.
The economics showed no viable

325
00:16:55,640 --> 00:16:58,680
investment case based on
existing CapEx and OpEx.

326
00:16:58,840 --> 00:17:03,000
Hence the all reserves have been
reduced TO0IN light of the very,

327
00:17:03,000 --> 00:17:06,760
very, very low iron ore price we
were seeing of about 40 bucks a

328
00:17:06,760 --> 00:17:11,599
tonne at that point in time.
And it gets, it gets even more

329
00:17:11,599 --> 00:17:13,920
wild.
Glencore give this group,

330
00:17:14,000 --> 00:17:19,079
Alorado Resources the right to
buy the ASCAF operation, which

331
00:17:19,280 --> 00:17:22,400
one year before they were going
to build for a billion U.S.

332
00:17:22,400 --> 00:17:24,079
dollars.
They give them the right to buy

333
00:17:24,079 --> 00:17:26,359
80% of it for 10 million.
That's a royalty.

334
00:17:26,520 --> 00:17:28,119
No.
Really.

335
00:17:28,200 --> 00:17:31,280
Yeah, and then Alorado don't
even take them up on it.

336
00:17:31,480 --> 00:17:35,880
They drag their feet paying them
$100,000 roughly a month to

337
00:17:36,000 --> 00:17:39,480
continue extending the
exclusivity that they have, but

338
00:17:39,480 --> 00:17:40,760
they never follow through with
it.

339
00:17:40,880 --> 00:17:45,440
And it sort of falls at that
point in time by 2016 where the

340
00:17:45,440 --> 00:17:47,640
company scooped up and there's
no more public announcements.

341
00:17:47,920 --> 00:17:51,320
But you can see I just found a
sort of 2020 reserve and

342
00:17:51,320 --> 00:17:53,720
resource statement from Glencore
and they still own it.

343
00:17:54,280 --> 00:17:57,200
So I'll write a never follow
through, but that it could have

344
00:17:57,200 --> 00:17:59,640
been a great, great deal.
So that that that was US $10

345
00:17:59,640 --> 00:18:02,760
million plus a 2.5% royalty.
Yeah, that royalty would have

346
00:18:02,760 --> 00:18:04,200
been worth a hell of a lot of
money, but.

347
00:18:04,280 --> 00:18:06,680
That royalty would have been
worth heaps, yeah.

348
00:18:06,760 --> 00:18:09,480
That's the sort of sort of
royalty that makes billionaires

349
00:18:09,920 --> 00:18:13,240
in no time.
But who is Al Rhoda?

350
00:18:13,240 --> 00:18:14,640
Like who is?
What is Al Rhoda?

351
00:18:15,080 --> 00:18:19,000
Then Arabic mining group, right?
This was about 5 minutes before

352
00:18:19,000 --> 00:18:23,200
we started recording SO.
About 10 minutes before we

353
00:18:23,200 --> 00:18:27,000
started recording.
Or here you ask yourself JD, and

354
00:18:27,000 --> 00:18:29,480
we mentioned it at the start,
how the hell does this all

355
00:18:29,480 --> 00:18:32,200
relate to min res?
That is the question I was

356
00:18:32,200 --> 00:18:35,240
trying to answer, Maddie, before
I got massively sidetracked into

357
00:18:35,240 --> 00:18:38,120
the the history here.
But the word is that we've heard

358
00:18:38,120 --> 00:18:41,520
Min Res have been interested in
these assets, specifically the

359
00:18:41,520 --> 00:18:45,200
big one in Mauritania, but all
three of the assets that sphere

360
00:18:45,200 --> 00:18:49,720
owned that Glencore sort of
holds the interests in for

361
00:18:49,920 --> 00:18:51,680
years.
You know, we heard people say as

362
00:18:51,680 --> 00:18:54,240
far back as 2015, these guys had
sort of interest.

363
00:18:54,560 --> 00:18:59,680
And you know, you remember 2015
was a disastrous time for all

364
00:18:59,680 --> 00:19:01,680
commodity producers.
Mining services companies were

365
00:19:01,680 --> 00:19:03,160
no different.
Like just look at the share

366
00:19:03,160 --> 00:19:06,240
prices of NRW and these sorts of
guys.

367
00:19:06,240 --> 00:19:09,760
They just just totally bombed
out 2015, 2016.

368
00:19:09,760 --> 00:19:11,440
It's been a long road to
recovery.

369
00:19:11,960 --> 00:19:14,320
Still allegedly, by the way,
sources have told us.

370
00:19:14,600 --> 00:19:16,760
That's right.
Sources have told us that min

371
00:19:16,760 --> 00:19:19,280
res have been interested for a
long, long time.

372
00:19:19,280 --> 00:19:21,600
And you know, I'm sure that you
could say that for heaps of

373
00:19:21,600 --> 00:19:24,240
assets out there who wouldn't be
interested in in some of these

374
00:19:24,240 --> 00:19:27,080
things, if you can pick them up
cheap, not that they had

375
00:19:27,080 --> 00:19:29,000
eventuated and they picked them
up cheap or anything.

376
00:19:29,560 --> 00:19:32,240
So we don't know if the angle is
that they would want to pick up

377
00:19:32,240 --> 00:19:34,000
the mining services contracts
here.

378
00:19:34,000 --> 00:19:36,600
I'm sure they would be
interested in that type of

379
00:19:36,880 --> 00:19:39,080
arrangement.
But we'd heard that there's a

380
00:19:39,760 --> 00:19:43,760
UAE based subsidiary that had
done a lot of work on these

381
00:19:43,760 --> 00:19:47,280
sorts of on these assets here.
Again, I'm not expecting

382
00:19:47,280 --> 00:19:50,080
anything for for quite a while.
Given the stretched balance

383
00:19:50,080 --> 00:19:52,480
sheet that Min Rays currently
has.

384
00:19:52,520 --> 00:19:54,160
I think we can sort of safely
say nothing.

385
00:19:54,760 --> 00:19:56,240
It's going to happen for quite a
while, but.

386
00:19:56,240 --> 00:19:59,200
That was, that was the initial
Intel we had was that they

387
00:19:59,200 --> 00:20:00,880
actually wanted to own interest
in this.

388
00:20:00,880 --> 00:20:04,280
This was a couple of months ago.
But, but they had, they were

389
00:20:04,520 --> 00:20:07,240
hyper conscious that the market
is worried about the balance

390
00:20:07,240 --> 00:20:09,920
sheet and they wouldn't want to,
yeah, add to any perceptions

391
00:20:09,920 --> 00:20:13,640
that they'd have more kind of a
CapEx or outflow kind of stress.

392
00:20:14,160 --> 00:20:15,720
But there's another angle as
well.

393
00:20:15,720 --> 00:20:18,280
And that's one where it's it's
you don't have to.

394
00:20:19,120 --> 00:20:21,480
You know, if it's, if it's a
crushing contractor or a whole

395
00:20:21,480 --> 00:20:24,960
of operations kind of contract,
then that's not a real balance

396
00:20:24,960 --> 00:20:27,880
sheet stress that's like, you
know, yeah, definitely EBITDA

397
00:20:27,880 --> 00:20:29,920
growth which the market would
get excited about as well,

398
00:20:29,920 --> 00:20:32,080
especially.
For a freaking 30 million tonne

399
00:20:32,080 --> 00:20:34,240
operation or something like
that, that's huge.

400
00:20:34,400 --> 00:20:38,720
Yeah, I just don't know how near
or real or close it all is

401
00:20:38,720 --> 00:20:41,200
because it's all.
It's like you know you've had to

402
00:20:41,200 --> 00:20:44,200
source a bunch of information
from back when sphere was

403
00:20:44,200 --> 00:20:45,920
publicly listed, and it's been a
long time since then.

404
00:20:46,720 --> 00:20:48,920
Hot coppers, a surprisingly good
source had all the

405
00:20:48,920 --> 00:20:50,800
announcements.
I just find them like that.

406
00:20:51,320 --> 00:20:57,440
But yeah, given the, the current
focus on lithium energy and of

407
00:20:57,440 --> 00:20:59,880
course Onslow, not to mention
the the mining services

408
00:20:59,880 --> 00:21:02,800
contracts they've got right now,
I'd imagine this is very much on

409
00:21:02,800 --> 00:21:05,560
the back burner even if it's
just from sort of signalling

410
00:21:05,560 --> 00:21:07,400
like you say, they're Trev.
The market wouldn't sort of

411
00:21:07,720 --> 00:21:10,360
stomach it too well.
But you know, everything sort of

412
00:21:10,360 --> 00:21:13,480
got a price and if you it
snapped that thing up in in

413
00:21:13,480 --> 00:21:15,680
2016.
Yeah, not everything we put in

414
00:21:15,680 --> 00:21:18,680
the director special kind of has
a fair few people kind of bite

415
00:21:18,680 --> 00:21:19,920
at it.
But this, this is one of those

416
00:21:19,920 --> 00:21:23,920
ones where we put it in there
and I had, you know, had like 5

417
00:21:23,920 --> 00:21:27,840
or 6 different encounters with
people, but various forms who

418
00:21:27,840 --> 00:21:30,800
are saying keep digging.
There's something to this story.

419
00:21:31,200 --> 00:21:34,520
So I think we'll wrap up by
saying there'll be a Part 2 to

420
00:21:34,520 --> 00:21:36,320
this story.
This is the background

421
00:21:36,320 --> 00:21:38,720
information.
And I'm keen to dig in the weeds

422
00:21:38,720 --> 00:21:42,400
on on Part 2 and see how Min
Res's interests go, go a bit

423
00:21:42,400 --> 00:21:46,000
deeper in the work they've kind
of done in that 20, sort of 16

424
00:21:46,000 --> 00:21:49,440
period onward in these assets in
Mauritania.

425
00:21:49,440 --> 00:21:51,080
Yeah.
Good digging, boys, Good

426
00:21:51,080 --> 00:21:53,240
digging.
I think since it looks like

427
00:21:53,240 --> 00:21:56,240
Mars, I'd say Greenland's
equipment needs to get over

428
00:21:56,240 --> 00:21:57,720
there and start digging for
water.

429
00:21:58,120 --> 00:22:01,400
Turn that dry magnetic
separation facility into a wet

430
00:22:01,400 --> 00:22:04,760
one.
Greenlands are the bloody mob

431
00:22:04,760 --> 00:22:08,480
that could set you up the Rolls
Royce of water facilities to

432
00:22:08,520 --> 00:22:10,800
just wet the shit out of that
joint.

433
00:22:11,720 --> 00:22:14,440
I think this would be a
challenge.

434
00:22:14,560 --> 00:22:17,160
Like holy snap and duck shit.
Talk about arid.

435
00:22:17,560 --> 00:22:21,400
But I assume with the 600,000 oz
bloody gold producer there must

436
00:22:21,400 --> 00:22:23,160
be some water there somewhere.
That's to be.

437
00:22:23,600 --> 00:22:25,440
That's to be they.
Probably got Greenlands in back

438
00:22:25,440 --> 00:22:30,040
in the day when they cranked.
It up quite possibly so, mate,

439
00:22:30,040 --> 00:22:33,040
they'll fill you to the frigging
gills with H2O, those guys.

440
00:22:33,200 --> 00:22:36,560
Yeah, but is there anything on
this capability statement here

441
00:22:36,560 --> 00:22:39,000
that you see water related that
they don't do?

442
00:22:39,320 --> 00:22:41,800
It's pretty much dewatering.
I don't think there be any

443
00:22:41,800 --> 00:22:43,760
dewatering requirements over
there.

444
00:22:43,920 --> 00:22:47,440
Yeah, dust suppression systems.
There'd be a whole lot of dust

445
00:22:47,440 --> 00:22:49,120
there.
Shit load they're gonna put in

446
00:22:49,160 --> 00:22:50,360
over there.
Can see some dust.

447
00:22:50,360 --> 00:22:54,360
At Mars 2.9, all the piping, all
the ponds, bloody everything H2O

448
00:22:54,360 --> 00:22:57,880
and you can guarantee it will be
a quality H2O.

449
00:23:00,520 --> 00:23:03,520
Thank you, Bobby.
Thank you Bobby Boucher, it will

450
00:23:03,520 --> 00:23:07,040
be high quality H2O delivered to
you by Greenlands Equipment.

451
00:23:07,040 --> 00:23:09,360
Get on your Greenlands.
Love it for hind watering.

452
00:23:09,360 --> 00:23:12,160
Oh, and Ding Ding Ding Ali GC.
Wait up.

453
00:23:12,200 --> 00:23:14,240
Have a guess who's the
shareholder of Men's?

454
00:23:14,960 --> 00:23:21,760
The AGC fund is long means Trav.
I'm keen to hear what you have

455
00:23:21,760 --> 00:23:26,880
found out digging into the the
trend of Japanese conglomerates

456
00:23:26,880 --> 00:23:30,040
coming to Australia, gone all
over the world doing minerals

457
00:23:30,040 --> 00:23:32,560
deals.
This is something that's a head

458
00:23:32,560 --> 00:23:34,480
full of steam, I reckon.
Well, I've travelled like a bit

459
00:23:34,480 --> 00:23:37,640
of credit for me prompting new
to this for the last year about.

460
00:23:37,640 --> 00:23:41,560
The Ben Alley, Japan Ben Alley
and Japan did have a bit of a

461
00:23:41,560 --> 00:23:44,760
rise, you know, back in the 70s,
but.

462
00:23:44,920 --> 00:23:49,040
I've been talking about ever
since the podcast started.

463
00:23:50,240 --> 00:23:54,480
They yeah, this is, this is,
we've been noticing this trend a

464
00:23:54,480 --> 00:23:56,800
lot, I think.
And what I've uncovered, JD, is

465
00:23:57,000 --> 00:24:00,840
nowhere near as interesting as
the beautiful narrative you just

466
00:24:00,840 --> 00:24:03,400
told on Mauritania.
I think I want to do a site

467
00:24:03,400 --> 00:24:05,360
visit there.
Yeah, entirely honest, but.

468
00:24:05,520 --> 00:24:09,080
Your story could be way more
sort of tangible and real than

469
00:24:09,160 --> 00:24:10,480
than what I just rambled about
though.

470
00:24:11,040 --> 00:24:14,480
But yeah, this is there's, you
know, we've been we've been

471
00:24:14,480 --> 00:24:16,640
reading announcements every day.
We put announcements in, in the

472
00:24:16,640 --> 00:24:17,960
director special.
And one trend that we've

473
00:24:18,000 --> 00:24:19,760
certainly kind of been included
on to, it's just like how

474
00:24:19,760 --> 00:24:21,760
frequently these kind of
Japanese conglomerates or

475
00:24:21,760 --> 00:24:25,120
trading houses come up as, you
know, partnering even in the

476
00:24:25,120 --> 00:24:28,040
early stage stuff in these like
copper or critical minerals

477
00:24:28,040 --> 00:24:30,040
projects.
Like the one that I noticed

478
00:24:30,040 --> 00:24:35,280
today was it was Camino Minerals
is the backdooring basically a

479
00:24:35,280 --> 00:24:39,440
development ready Chilean copper
project called Pookios, but

480
00:24:39,440 --> 00:24:42,560
they're requiring their interest
in a 5050 JV with a Tetsu and a

481
00:24:42,560 --> 00:24:46,280
Tetsu is a Japanese miner.
The parties are stumping up $20

482
00:24:46,280 --> 00:24:49,880
million upfront up to $25
million more in contingent.

483
00:24:49,880 --> 00:24:53,920
Plus there's a 1.25% it's about
to royalty and the vendors,

484
00:24:54,240 --> 00:24:56,160
private equity group, denim
capital, who we've seen pop up

485
00:24:56,160 --> 00:24:59,960
plenty of times this transaction
in another selfish a pretty

486
00:24:59,960 --> 00:25:01,840
interesting one.
But what I I really want to

487
00:25:02,120 --> 00:25:05,160
focus on it's that whole litany
of an of announcements just

488
00:25:05,160 --> 00:25:07,360
showing how aggressive that
Japanese sort of money is

489
00:25:07,360 --> 00:25:10,720
flowing into, you know, into
into even early stage sort of,

490
00:25:10,880 --> 00:25:12,080
you know, mining companies out
there.

491
00:25:12,560 --> 00:25:15,560
So I'll, I'll, I'll rattle them
up, but please break me up gems

492
00:25:15,560 --> 00:25:17,880
because it'll be a hard one.
Let's go, Matt.

493
00:25:18,960 --> 00:25:21,680
I'll start with Idemitsu.
Remember their investment into

494
00:25:21,680 --> 00:25:25,120
Delta Lithium last year, it was
46,000,000 bucks for 15% of the

495
00:25:25,120 --> 00:25:27,720
company at a premium.
Well, they've also invested in

496
00:25:27,720 --> 00:25:30,520
Critical Minerals Group, another
ASX company who are focused on

497
00:25:30,520 --> 00:25:33,920
the Linfield Vanadium project
where they summed up money for a

498
00:25:33,920 --> 00:25:37,080
34% interest in the IPO two
years ago and have maintained

499
00:25:37,080 --> 00:25:40,480
that since.
Plus another vanadium play

500
00:25:40,480 --> 00:25:45,160
called Vecco Group, which it
admits to Sumitomo Electric and

501
00:25:45,160 --> 00:25:46,960
Vecco, they've all kind of
signed this collaboration

502
00:25:46,960 --> 00:25:49,520
agreement to build and sell
vanadium flow batteries to

503
00:25:50,000 --> 00:25:53,000
Australian customers using
Sumitomo's hardware and Vecco's

504
00:25:53,000 --> 00:25:56,440
electrolyte.
Now that I talk to you there,

505
00:25:56,800 --> 00:25:59,720
this is a bit more left field,
but they provide an off take to

506
00:25:59,720 --> 00:26:02,640
BC is Mighty Salt project.
They said they'd exit them call

507
00:26:02,640 --> 00:26:05,240
in Australia by now, but they
haven't Sumitomo.

508
00:26:05,920 --> 00:26:08,320
In September last year, Sumitomo
said they'd they'd start this

509
00:26:08,520 --> 00:26:11,440
joint study with Blind Town for
downstream hydroxide production

510
00:26:11,440 --> 00:26:14,360
in Japan.
And then in June this year, it

511
00:26:14,360 --> 00:26:18,080
was Sumitomo who said they'd
spend $4.5 million to earn a 51%

512
00:26:18,080 --> 00:26:21,000
stake in Hammer Metals bulrush
copper project in Queensland.

513
00:26:21,440 --> 00:26:24,640
So, you know, farming stuff.
Early stage Jogmec.

514
00:26:24,920 --> 00:26:26,240
You seen those guys before
Jogmec?

515
00:26:26,240 --> 00:26:28,760
Jogmec, Where's that?
That rings a bell.

516
00:26:29,080 --> 00:26:30,240
Just last week that popped up.
Didn't.

517
00:26:30,240 --> 00:26:34,440
They that's it, yeah.
It was the other, yeah, 30th of

518
00:26:34,440 --> 00:26:36,760
September.
So yeah, last week, the $6

519
00:26:36,760 --> 00:26:39,840
million lithium farming with
Alchemy on Roy Hills, which is

520
00:26:40,080 --> 00:26:43,240
near Manor there in WA, but
earlier in the year too, they

521
00:26:43,240 --> 00:26:47,720
did this $5,000,000 farming with
Adventists on the Tres Picachos

522
00:26:47,720 --> 00:26:52,720
project in Ecuador as well.
Marabeni, this is you've never.

523
00:26:52,720 --> 00:26:55,440
Heard of that?
They've got a long, long history

524
00:26:55,440 --> 00:26:58,320
with coal, coal mines in
Australia.

525
00:26:58,440 --> 00:27:00,880
Actually, they actually own 15%
of Roy Hill.

526
00:27:01,800 --> 00:27:03,080
Yeah, Gina's Roy Hill on all
Mine.

527
00:27:03,240 --> 00:27:05,400
Of the mine, yeah, yeah, yeah.
Well.

528
00:27:05,400 --> 00:27:09,760
Yeah, they also own 30% of
Centinela copper mine with

529
00:27:09,760 --> 00:27:11,880
Enterfugasta in July, among
other things.

530
00:27:12,160 --> 00:27:16,560
In December last year Centinela
got approved for a massive $4.4

531
00:27:16,560 --> 00:27:20,320
billion expansion.
Late last year, Morbeni also

532
00:27:20,320 --> 00:27:24,120
they they agreed to acquire an
extra stake in when there are

533
00:27:24,120 --> 00:27:28,800
laws Lambres copper mine in
Chile and also a 20% stake in

534
00:27:28,800 --> 00:27:31,080
Pan Pacific Copper Co from JX
Metals.

535
00:27:31,360 --> 00:27:34,280
In recent history, they said
they'd spend 12 million Canadian

536
00:27:34,280 --> 00:27:36,840
dollars to earn a 20% interest
in some of HUD Bay's copper

537
00:27:37,120 --> 00:27:39,440
exploration properties in
Manitoba and Canada, too.

538
00:27:39,640 --> 00:27:41,320
What about good old Mitsubishi,
Matt?

539
00:27:41,440 --> 00:27:44,920
It's the old school.
If you go back a year ago,

540
00:27:45,560 --> 00:27:48,960
Mitsubishi Material, they
acquired 5% interest in Western

541
00:27:48,960 --> 00:27:52,320
Copper and Gold Corporation for
21 million Canadian dollars.

542
00:27:53,160 --> 00:27:55,400
They'll focus on the casino
copper project in Canada.

543
00:27:55,400 --> 00:27:59,320
They also put 20 million
Canadian dollars they placed at

544
00:27:59,320 --> 00:28:02,080
A at a premium to buy 5% of
Marimarka.

545
00:28:02,560 --> 00:28:05,440
This is a, a project in in Chile
earlier this year, Sumitomo

546
00:28:05,440 --> 00:28:08,840
Mitsubishi together they they
basically agreed to spend nearly

547
00:28:08,840 --> 00:28:14,160
$100 million on a on Adfs for
our Daya's Kalgoorlie nickel

548
00:28:14,160 --> 00:28:16,720
project, which is you know, big,
big nickel ladder art project

549
00:28:17,360 --> 00:28:19,120
doing a bunch of work on Adfs
for them.

550
00:28:20,200 --> 00:28:22,040
Mitsubishi.
They also signed an MOU with

551
00:28:22,040 --> 00:28:24,880
Chalice if you remember to work
on the on the PFS together for

552
00:28:24,880 --> 00:28:26,640
for Gunnerville.
Jeez.

553
00:28:27,560 --> 00:28:29,440
Sojits, you heard of them?
No.

554
00:28:31,080 --> 00:28:36,040
If if have you ever come across
JRJARE jar when you're reading

555
00:28:36,040 --> 00:28:39,720
Linus's announcements at
Stanford, Japan, Australia, rare

556
00:28:39,720 --> 00:28:41,800
Earths which is Co owned by
Sojits and Jogmec.

557
00:28:42,080 --> 00:28:45,680
They've a long history with kind
of accommodative funding for for

558
00:28:45,680 --> 00:28:51,520
Linus, but as recently as March
2023, they tipped in $200

559
00:28:51,520 --> 00:28:54,040
million into a kind of friendly
loan facility and waived the

560
00:28:54,040 --> 00:28:56,720
prior interest payment.
At the same time in Australia,

561
00:28:56,720 --> 00:28:59,440
Sojitz, they also have an
interest in Worsley, Illumina.

562
00:28:59,440 --> 00:29:02,360
They've got a bunch of coal
mines, interest in a bunch of

563
00:29:02,360 --> 00:29:04,960
coal mines in Queensland too.
God, this is like a beautiful

564
00:29:04,960 --> 00:29:09,080
mind bloody extravaganza here.
Trav the buddy.

565
00:29:09,080 --> 00:29:12,080
Keep it rolling for me, baby.
The mind map would look pretty

566
00:29:12,080 --> 00:29:14,160
cool, but this is a podcast
unfortunately so.

567
00:29:14,960 --> 00:29:19,720
You make your own, everyone.
The last one is Mac, so not, not

568
00:29:19,720 --> 00:29:21,760
your typical like trading house
like the others.

569
00:29:21,760 --> 00:29:25,080
It's actually not not even a
Japanese miner, but they are a

570
00:29:25,080 --> 00:29:27,120
miner.
But there's a there's a Japanese

571
00:29:27,120 --> 00:29:29,720
trading house link.
They have this 95% interest in

572
00:29:29,720 --> 00:29:32,040
the Mount Pleasant thermal coal
mine in the Hunter Valley.

573
00:29:32,720 --> 00:29:36,480
A few months ago it emerged that
they were paying up for SA and

574
00:29:36,480 --> 00:29:40,360
copper hopeful Rex Minerals with
their Hillside project.

575
00:29:40,360 --> 00:29:43,480
They're requiring the company
for a close to $400 million cash

576
00:29:43,480 --> 00:29:45,720
and they're planning to spend
even more developing the big

577
00:29:45,720 --> 00:29:47,200
project.
Like it's probably going to be a

578
00:29:47,200 --> 00:29:48,720
billion dollar CapEx there.
Don't know if they'll do it

579
00:29:48,720 --> 00:29:52,760
alone or not, but you've got,
I've read this, this, this, the

580
00:29:52,760 --> 00:29:55,480
scheme booklet and looks like
they've got this acquisition

581
00:29:55,480 --> 00:29:58,240
facility in place where Sumitomo
is on that debt syndicate as

582
00:29:58,240 --> 00:29:59,680
well.
So there's involvement of a

583
00:29:59,680 --> 00:30:01,440
trading house.
But it's this sentence in the

584
00:30:01,440 --> 00:30:02,920
scheme booklet which is
interesting too.

585
00:30:03,440 --> 00:30:06,360
I'll read it out.
The proposed acquisition of 100%

586
00:30:06,360 --> 00:30:08,880
of Rex is consistent with the
Mac Group's objective of

587
00:30:08,880 --> 00:30:11,360
investing in the copper sector
and diversifying from its

588
00:30:11,360 --> 00:30:14,360
current significant investment
in the Australian coal mining

589
00:30:14,360 --> 00:30:16,440
sector.
The Mac Group is well placed to

590
00:30:16,440 --> 00:30:19,960
fund the required investment for
the intended development of fuel

591
00:30:20,760 --> 00:30:22,240
side.
And before Mac actually acquired

592
00:30:22,240 --> 00:30:28,320
Rex, they actually signed an MOU
with the Tetsu Rex, who we

593
00:30:28,320 --> 00:30:31,320
mentioned at the very top as
being the instigator of the

594
00:30:31,320 --> 00:30:33,600
story as well.
And I'm sure that this list is

595
00:30:33,600 --> 00:30:35,280
not exhaustive.
I reckon I've missed plenty

596
00:30:35,280 --> 00:30:36,680
here.
But you kind of get the picture,

597
00:30:36,680 --> 00:30:38,280
right?
There's a bunch of themes that

598
00:30:38,400 --> 00:30:42,560
that pop up just in all of those
kind of recent, you know, deals

599
00:30:42,560 --> 00:30:44,400
or investments that have that
have rattled off.

600
00:30:44,400 --> 00:30:45,480
What?
What did you notice?

601
00:30:47,320 --> 00:30:50,520
Japan, these trading houses,
they've got a lot of money at

602
00:30:50,520 --> 00:30:53,960
the moment and they are keen to
secure the minerals.

603
00:30:53,960 --> 00:30:57,520
They've also got a lot of
downstream capacity in country

604
00:30:57,520 --> 00:30:59,960
and and around the world, right?
So they wanna source.

605
00:30:59,960 --> 00:31:02,560
That's why they did a lot of the
deals throughout the the Andes

606
00:31:02,560 --> 00:31:06,640
and in in South America to like
guys like Sumatomo to source the

607
00:31:06,640 --> 00:31:09,920
raw materials, right?
Yeah, it's it's like a lot of

608
00:31:09,920 --> 00:31:12,080
those ones where early stage
stuff they're doing like

609
00:31:12,080 --> 00:31:12,920
farming.
Yeah.

610
00:31:12,920 --> 00:31:15,720
Like like you gotta have a
really long term outlook to get

611
00:31:15,720 --> 00:31:19,040
any like reward in terms of
security, metal supply.

612
00:31:19,200 --> 00:31:21,360
Yeah.
So they're, they're thinking on

613
00:31:21,360 --> 00:31:25,000
an, an ultra long outlook, I
think 20 plus years to get raw

614
00:31:25,000 --> 00:31:28,480
material reward from that.
There there there's another

615
00:31:28,480 --> 00:31:31,400
theme on ours, which is like
there's a lot of copper, a lot

616
00:31:31,400 --> 00:31:33,080
of a lot of that stuff is
oriented towards copper.

617
00:31:33,080 --> 00:31:36,120
They these trading houses.
They, it appears I have a, you

618
00:31:36,560 --> 00:31:40,480
know, explicit strategy to get
longer on like copper exposure.

619
00:31:42,160 --> 00:31:46,320
And but I wonder if kind of
underpinning a lot of it too is

620
00:31:46,320 --> 00:31:50,560
just like, you know, why, why?
Why are they why they like,

621
00:31:50,720 --> 00:31:52,160
where's the money all coming
from?

622
00:31:52,240 --> 00:31:55,200
I don't know if it's a symptom
of cheap money or cheap capital

623
00:31:55,200 --> 00:31:57,920
in Japan, where you've still got
like 0.25% interest rates and

624
00:31:57,920 --> 00:31:58,880
that kind of finds its way
abroad.

625
00:31:58,880 --> 00:32:01,800
I don't know.
But yeah, I find it interesting.

626
00:32:02,240 --> 00:32:03,800
And it's just because it's
allowed here.

627
00:32:04,200 --> 00:32:07,480
Like they're just like bring out
Japan because it's ex China.

628
00:32:07,760 --> 00:32:12,320
Yeah, yeah, very much so.
The the track record for looking

629
00:32:12,320 --> 00:32:15,600
long term is a fascinating 1 and
a real attribute of Japanese

630
00:32:15,600 --> 00:32:16,880
businesses.
A lot of these companies have

631
00:32:16,880 --> 00:32:18,040
been around for a long, long
time.

632
00:32:18,040 --> 00:32:21,600
They passed down generation to
generation and they've got a a

633
00:32:22,120 --> 00:32:25,440
good habit for looking a long
way into the future.

634
00:32:25,440 --> 00:32:28,640
And in in our neck of the woods,
you do that by going with the

635
00:32:28,640 --> 00:32:30,840
juniors.
So that's a great point. 11 you

636
00:32:30,840 --> 00:32:34,040
did miss there.
That'll be bloody huge and that

637
00:32:34,040 --> 00:32:36,760
have been huge in Australia and
we'll continue invest and

638
00:32:36,760 --> 00:32:40,440
probably should invest in us as
Komatsu biggest supplier of

639
00:32:40,440 --> 00:32:44,240
yellow gear and 'cause if you
come on board Komatsu, we could

640
00:32:44,240 --> 00:32:46,080
probably get MMS to buy some
gear off you.

641
00:32:46,720 --> 00:32:49,000
Just sign, give us advice.
Komatsu, mate.

642
00:32:49,440 --> 00:32:52,240
Komatsu huge biggest supplier of
yellow gear.

643
00:32:52,240 --> 00:32:56,160
So if you're a yellow gear snob,
give me a ring Kamat.

644
00:32:56,160 --> 00:32:59,680
So just let me know.
Toyota too, we'll have.

645
00:32:59,920 --> 00:33:04,320
Toyota Oh bloody sensational
digging.

646
00:33:04,320 --> 00:33:07,920
Ricardino look forward to look
forward to a South Korea one

647
00:33:09,000 --> 00:33:12,240
following as well.
Like to fulfil my rise of Japan

648
00:33:12,240 --> 00:33:14,680
and South Korea.
But yeah, sensational workforce.

649
00:33:14,680 --> 00:33:17,080
That'll come in Part 2 with RJDS
Part 2.

650
00:33:17,240 --> 00:33:19,760
Oh mate, lucky we've got future
episodes forever.

651
00:33:19,960 --> 00:33:22,800
Let's make it happen.
Well, and as I said, I'm stick

652
00:33:22,800 --> 00:33:26,280
to my line and competency level.
I'll just review the quarterly

653
00:33:26,280 --> 00:33:28,640
updates with a bit of metallurgy
and stuff boys.

654
00:33:28,640 --> 00:33:32,720
So not at not at the level of
you 2 geniuses, but why don't we

655
00:33:32,720 --> 00:33:35,280
start with Capricorn?
Don't talk yourself down mate.

656
00:33:35,280 --> 00:33:36,720
I think there's a bit of a story
here as well.

657
00:33:36,760 --> 00:33:38,200
So Kinta.
Yeah, there's a big guard.

658
00:33:38,200 --> 00:33:41,760
There's a big guard got nothing,
we nothing we don't know, but

659
00:33:42,440 --> 00:33:45,800
it's Capricorn or they
definitely don't get the

660
00:33:45,800 --> 00:33:50,160
attention for any like you know,
delays or getting on time,

661
00:33:50,160 --> 00:33:52,520
because everyone's like ah clock
you'll just sort it out.

662
00:33:52,680 --> 00:33:54,480
It's all good it.
Helps when you don't do a

663
00:33:54,480 --> 00:33:56,440
quarterly call for that one
announcement.

664
00:33:56,440 --> 00:33:59,160
Then you just make cash every
quarter and everyone just leaves

665
00:33:59,160 --> 00:34:00,960
you alone.
So mining companies, if you want

666
00:34:00,960 --> 00:34:03,280
to get left alone, just make
heaps of cash each quarter,

667
00:34:03,560 --> 00:34:04,920
quarter on quarter and you'll be
fine.

668
00:34:05,280 --> 00:34:09,280
So now that you'd say stock
standard performance for

669
00:34:09,280 --> 00:34:11,760
Capricorn, but it looks like
they've moved look a lot.

670
00:34:11,800 --> 00:34:13,120
Looks like they're in setup
mode.

671
00:34:13,120 --> 00:34:16,239
A bit like they moved a shit
load of waste to set up this big

672
00:34:16,239 --> 00:34:17,800
rope and pit for the coming
quarters.

673
00:34:17,800 --> 00:34:22,679
Like an extra half a million BCM
move compared to the prior

674
00:34:22,679 --> 00:34:25,080
quarter.
So shit shit load of work done

675
00:34:25,080 --> 00:34:27,639
there.
They also commissioned the

676
00:34:27,800 --> 00:34:31,800
liquid oxygen and lead nitrite
facilities which you actually

677
00:34:31,800 --> 00:34:34,239
say their recovery is lifted by
2.8%.

678
00:34:35,199 --> 00:34:38,159
So my understanding is like this
liquid oxygen.

679
00:34:38,159 --> 00:34:41,520
Yeah, you add that in like the
pre leach aids in the oxidation

680
00:34:41,520 --> 00:34:44,520
of any sulphides in and around
encapsulating the gold if there

681
00:34:44,520 --> 00:34:50,400
is some, the lead nitrate also
enhances the oxidation of what

682
00:34:50,400 --> 00:34:52,760
the soluble sulphides during pre
leach.

683
00:34:52,760 --> 00:34:56,080
And so both of them together
sort of increase the gold

684
00:34:56,080 --> 00:34:58,920
available for dissolution into
the cyanide.

685
00:34:58,920 --> 00:35:02,480
And also I think the lead
nitrate also reduces the

686
00:35:02,480 --> 00:35:06,840
interactions of pyrites with the
cyanide and lowers your cyanide

687
00:35:06,840 --> 00:35:08,840
consumption, so.
You are a metallurgist.

688
00:35:08,840 --> 00:35:10,880
I think we can now actually call
you Matthew.

689
00:35:10,920 --> 00:35:14,160
Yeah, man, just it just flows
off the tub, flows off the tub.

690
00:35:14,160 --> 00:35:16,800
But yeah, so obviously a couple
of processing improvements I put

691
00:35:16,800 --> 00:35:20,560
in place, which yeah, nearly
what you know, 2.9% lift in

692
00:35:20,560 --> 00:35:23,480
recovery, which is good and good
considering the grade was lower

693
00:35:23,480 --> 00:35:25,960
because it's usually.
What?

694
00:35:25,960 --> 00:35:27,880
What happened to the grade?
Well, don't I?

695
00:35:27,880 --> 00:35:29,760
They said.
They said it was part of the the

696
00:35:29,760 --> 00:35:32,200
mine plan, but that .8 grammes
per tonne jumps out at you,

697
00:35:32,200 --> 00:35:33,320
doesn't it?
Yeah, yeah.

698
00:35:33,320 --> 00:35:36,320
So it's obviously down from 1
gramme tonne a year ago.

699
00:35:36,720 --> 00:35:38,480
It's obviously the phase they're
going through.

700
00:35:40,200 --> 00:35:45,480
As I said, cash build of 24 mil
that and that's before they then

701
00:35:45,480 --> 00:35:48,880
spent 4 1/2 on Mount Gibson.
So about 20 mil cash build.

702
00:35:49,160 --> 00:35:52,440
But yeah, obviously that grade
did hurt them a bit.

703
00:35:52,440 --> 00:35:56,200
So like for instance, if they
put the same mil throughput at

704
00:35:56,200 --> 00:35:59,480
.9 instead of .8, they would
have done 31,000 oz.

705
00:35:59,480 --> 00:36:04,080
So, but yeah, it's, it's
probably considering they closed

706
00:36:04,080 --> 00:36:06,480
out the hedge book and
everything so that we had full

707
00:36:06,480 --> 00:36:10,240
exposure to the gold price that
probably, yeah, the grade would

708
00:36:10,240 --> 00:36:14,080
have been helpful.
But hopefully by the look of the

709
00:36:14,080 --> 00:36:17,680
comments regarding the waste
moving in, increase in available

710
00:36:17,680 --> 00:36:20,320
work areas, you could probably
expect a pretty decent bounce

711
00:36:20,320 --> 00:36:22,600
back in Q2.
I would, I would imagine from

712
00:36:22,600 --> 00:36:25,000
the commentary without saying
it.

713
00:36:25,000 --> 00:36:31,600
So the look, the big future
kicker for Capricorn is this the

714
00:36:31,600 --> 00:36:34,120
Matt Gibson growth story.
It's got a lot that's going to

715
00:36:34,120 --> 00:36:35,440
add.
Like you know they're guiding

716
00:36:35,920 --> 00:36:40,320
100 and 10120 for this year, but
then Matt Gibson's going to add

717
00:36:40,320 --> 00:36:45,640
another 155,000 ounces to the
production profile when that

718
00:36:45,640 --> 00:36:47,840
comes online.
So look 10 year mine life at

719
00:36:47,840 --> 00:36:50,640
this stage.
I think it's 152 for seven

720
00:36:50,640 --> 00:36:55,480
years, 5 million tonne mill pre
production CapEx, 260 which have

721
00:36:55,480 --> 00:36:58,120
started deploying a little bit
for the camp and everything.

722
00:36:58,120 --> 00:37:02,080
So potential for future
underground there, which is not

723
00:37:02,080 --> 00:37:04,520
really included in the PFS to my
knowledge.

724
00:37:04,520 --> 00:37:07,560
But I think everyone would be
asking like what's what's the

725
00:37:07,560 --> 00:37:10,280
hold up of Mount Gibson?
What's how's it all progressing?

726
00:37:10,400 --> 00:37:13,640
Totally.
So look they've and I think it's

727
00:37:13,640 --> 00:37:16,680
all, it's all been sort of
disclosed and everything the

728
00:37:16,680 --> 00:37:18,880
permitting process they're going
through because they they've

729
00:37:18,960 --> 00:37:22,600
submitted the permitting
referral Q2 FY24.

730
00:37:22,600 --> 00:37:26,240
So like about December last
year, that's for the WI permit,

731
00:37:26,400 --> 00:37:28,800
the state 1.
So and then they're scheduled to

732
00:37:28,800 --> 00:37:32,560
submit the public environment
report, the PAR they're referred

733
00:37:32,560 --> 00:37:36,240
to as in December this year.
So that's the federal permitting

734
00:37:36,440 --> 00:37:38,960
and they're going to sort of run
in parallel together.

735
00:37:38,960 --> 00:37:44,560
So that and then that once that
federal PAR submitted that guys

736
00:37:44,560 --> 00:37:47,720
for public consultation and
final assessment.

737
00:37:47,720 --> 00:37:51,280
So what they're obviously at the
mercy of our great government

738
00:37:51,280 --> 00:37:53,560
who loves really pushing this
shit through as quick as

739
00:37:53,560 --> 00:37:55,920
possible.
Because there there was, I

740
00:37:55,960 --> 00:37:58,920
think, I think they were hoping
to get because I think for the

741
00:37:58,960 --> 00:38:03,560
PAR though are hoping to get the
response in May initially, but I

742
00:38:03,560 --> 00:38:06,560
think then they got it in June.
So even the because they had to

743
00:38:06,560 --> 00:38:09,520
get that response to get the
guidelines of what to put in the

744
00:38:09,520 --> 00:38:13,160
PAR for them to submit.
So I think you say T Max

745
00:38:13,160 --> 00:38:17,360
Canaccord model that sort of so
they've pushed back first goal

746
00:38:17,360 --> 00:38:21,160
from Mount Gibson by 1/4.
So just.

747
00:38:21,160 --> 00:38:23,400
So that now sits in FY20 6.
Yeah.

748
00:38:23,400 --> 00:38:26,480
So it was it was going to be
March quarter FY20 6 being

749
00:38:26,480 --> 00:38:30,880
pushed back on the model to June
quarter FY20 6 for, you know,

750
00:38:30,880 --> 00:38:34,960
just pending possible permitting
delays, but.

751
00:38:35,680 --> 00:38:39,120
Yeah, it's like it's come up a
few times in conversations just

752
00:38:39,120 --> 00:38:44,160
like the mid, mid tiers of
facing and pretty, pretty crazy

753
00:38:44,160 --> 00:38:47,480
kind of permitting timelines in
a way that they never used to

754
00:38:47,480 --> 00:38:49,440
have to.
And in some instances even

755
00:38:49,440 --> 00:38:51,480
require like lobbying to move
things along.

756
00:38:51,480 --> 00:38:55,240
And I wonder, I wonder if I'm,
yeah, Mount Gibson kind of fits

757
00:38:55,240 --> 00:38:56,800
in that category.
Because I think they've been at

758
00:38:56,800 --> 00:39:01,400
this for about 2 1/2 years, like
the the permitting approval,

759
00:39:01,400 --> 00:39:04,440
like like the prep and, and
everything like huge, huge

760
00:39:04,440 --> 00:39:07,600
process like it's been, it's
been going on for a long time.

761
00:39:07,600 --> 00:39:11,560
Because they're everything else
seems to be ready to go in a

762
00:39:11,560 --> 00:39:14,120
sense, like all the tenderings
out for the, you know, for the

763
00:39:14,120 --> 00:39:17,400
middle of the con open pit power
and all that.

764
00:39:17,400 --> 00:39:23,040
But it's, it's if they if they
look, they're the best in the

765
00:39:23,040 --> 00:39:26,600
game executing no lot, no word
about it.

766
00:39:26,640 --> 00:39:32,000
Like if they can come FY20 7 if
like even if they're taking into

767
00:39:32,000 --> 00:39:34,440
account there, it might be if
there is a little bit of a

768
00:39:34,440 --> 00:39:37,080
permitting delay, but as long as
construction and everything's on

769
00:39:37,080 --> 00:39:41,680
time, they're the models sign
that they're going to be

770
00:39:41,680 --> 00:39:47,320
producing like 345 mil of free
cash flow in FY20 7 at 264,000

771
00:39:47,320 --> 00:39:49,240
oz and they'll be debt free by
then.

772
00:39:49,560 --> 00:39:53,720
They got it modelled it pulling
out about 50 mil of debt, paying

773
00:39:53,720 --> 00:39:56,960
it off because you got the Carla
window operating cash flow.

774
00:39:56,960 --> 00:40:01,320
So if that all comes to
fruition, like come FY20 7,

775
00:40:01,320 --> 00:40:04,920
they'll be, they'll be printing
some good chunk of coin there.

776
00:40:04,920 --> 00:40:08,680
So that's, that's what sort of
Capricorn's heading to you won't

777
00:40:08,680 --> 00:40:11,480
be doesn't look like you'd
expect much free cash flow for

778
00:40:11,920 --> 00:40:15,200
FY25 and 26.
It's all going to be going into

779
00:40:15,680 --> 00:40:19,480
Mount Gibson and debt repayment.
So sort of really building up to

780
00:40:19,480 --> 00:40:23,440
that point.
It'll be I remember if you if

781
00:40:23,440 --> 00:40:29,400
you went back only a year ago,
maybe 1818 months ago, every

782
00:40:30,120 --> 00:40:33,480
every broker report you'd you'd
read about Capricorn had kind of

783
00:40:33,480 --> 00:40:36,720
Karla window producing an all in
sustaining cost of of 1200 bucks

784
00:40:36,720 --> 00:40:41,360
an ounce ad infinitum.
Just they just ran that through

785
00:40:41,360 --> 00:40:44,320
the model to the end.
But you can already see eighty

786
00:40:44,320 --> 00:40:49,440
months later, like the the costs
are up to where is it?

787
00:40:49,440 --> 00:40:55,960
It's like. 14 ish. 14 ish 1400
per oz, but it's it gets more

788
00:40:55,960 --> 00:40:58,640
and more costly as they they get
you know more and more through

789
00:40:58,640 --> 00:41:00,880
the whole body just though you
know, they have to do more and

790
00:41:00,880 --> 00:41:04,880
more stripping in there and kind
of towards the top.

791
00:41:04,880 --> 00:41:07,000
You had a bit of a juicy section
there as well.

792
00:41:07,000 --> 00:41:10,080
But I think, I think the cost
per oz will go up over time as

793
00:41:10,080 --> 00:41:12,800
opposed to what the brokers kind
of we're running.

794
00:41:13,200 --> 00:41:15,880
Previously too yeah that's but
it's just one of the ones until

795
00:41:15,880 --> 00:41:19,320
they don't produce free cash
like they it's one of them

796
00:41:19,320 --> 00:41:22,560
companies they market benefit
yeah or they seem to make it

797
00:41:22,560 --> 00:41:25,600
work like because if they know
that waist stripping is

798
00:41:25,600 --> 00:41:29,200
increasing like it's like they
know the formula to just make it

799
00:41:29,200 --> 00:41:32,840
work and keep that consistent
operating cash flow at colour

800
00:41:32,840 --> 00:41:36,280
window so yeah you just can't
discount the bloody the

801
00:41:36,280 --> 00:41:38,800
management execution there so.
Absolutely.

802
00:41:39,000 --> 00:41:42,760
There so but I'll see bloody for
that PFS a bloody out cross

803
00:41:42,760 --> 00:41:46,200
boundary energies on the tender
for their hybrid power station

804
00:41:46,480 --> 00:41:48,680
for Mayor Gibson.
It's friggin written out in the

805
00:41:48,680 --> 00:41:51,920
PFS clear as day.
Requiring an independent power

806
00:41:51,920 --> 00:41:54,040
producer under power purchase
agreement.

807
00:41:55,440 --> 00:41:58,440
You couldn't be more explicit.
That's the only thing missing in

808
00:41:58,440 --> 00:42:02,960
brackets is Tim Taylor and cross
boundary energy like like this

809
00:42:02,960 --> 00:42:05,160
is their bread and butter.
Like Timmy Taylor.

810
00:42:05,160 --> 00:42:08,120
He's been there and done it.
Build and operate power stations

811
00:42:08,120 --> 00:42:10,200
for mine sites in Australia.
Right?

812
00:42:10,960 --> 00:42:14,280
Multiple times multiple.
This is what he came from Africa

813
00:42:14,280 --> 00:42:16,920
to do.
Yes, Tim Taylor come from Africa

814
00:42:16,920 --> 00:42:18,680
to do this.
In Australia.

815
00:42:19,680 --> 00:42:21,640
He did it in Mauritania first.
That's it.

816
00:42:21,720 --> 00:42:24,520
He.
Is built global power by trusted

817
00:42:24,520 --> 00:42:30,440
source of reliable hybrid power
solutions for Australia.

818
00:42:30,480 --> 00:42:31,720
That'll help the permit in
hybrid.

819
00:42:31,920 --> 00:42:34,440
Hybrid hybrid.
Give yourself a Freddy bonus and

820
00:42:34,440 --> 00:42:37,520
call Tim Taylor Capricorn and
everyone else.

821
00:42:37,880 --> 00:42:39,680
This has probably got his name
all over it.

822
00:42:39,840 --> 00:42:41,360
Bloody you beauty.
Cheers.

823
00:42:41,360 --> 00:42:44,960
Cross boundary OCBE.
So yeah, exciting toys.

824
00:42:44,960 --> 00:42:48,080
Waff waff.
So we talked about him

825
00:42:48,080 --> 00:42:51,440
yesterday.
They've put the, I guess the,

826
00:42:52,000 --> 00:42:55,360
you know, the pre quarterly out
an update on the mining permits.

827
00:42:56,160 --> 00:42:57,800
Yeah, looks to be, looks to be
all right.

828
00:42:57,960 --> 00:43:00,640
Yeah, you're bang on what you
said yesterday, JD, this could

829
00:43:00,680 --> 00:43:03,720
or you didn't say it was, you
could say this is this another

830
00:43:03,720 --> 00:43:07,280
buy at the dip moment and
they've rallied about 10% back

831
00:43:07,280 --> 00:43:09,200
today, so.
Yeah.

832
00:43:09,200 --> 00:43:11,840
I mean, the the comforting thing
I think for for the market was

833
00:43:11,840 --> 00:43:14,640
the announcement today saying
that sort of had contact with

834
00:43:14,640 --> 00:43:18,080
government officials who had
then informed them that the

835
00:43:18,080 --> 00:43:20,480
president's sort of comments
were with respect to the

836
00:43:20,480 --> 00:43:24,080
companies that we're not abiding
by the the laws in Burkina Faso.

837
00:43:24,440 --> 00:43:27,280
That doesn't include the people
who are abiding like Wolf.

838
00:43:27,280 --> 00:43:29,200
So yeah.
It's pretty unbelievable, all

839
00:43:29,200 --> 00:43:32,600
that, that reaction of a radio
conversation.

840
00:43:32,960 --> 00:43:34,600
What is the president of the
country so?

841
00:43:34,880 --> 00:43:38,000
Yeah, I know.
But it's like, yeah, very.

842
00:43:39,200 --> 00:43:41,960
You could say loosely
interpreted, but it's like just

843
00:43:42,680 --> 00:43:45,760
this is what they have to deal
with and it's not the first and

844
00:43:45,760 --> 00:43:47,840
won't be the last.
No, it won't be.

845
00:43:47,840 --> 00:43:50,840
They they also chucked up a
September quarter update, not

846
00:43:50,840 --> 00:43:54,920
too much detail here, but 48,000
oz were produced for the

847
00:43:55,560 --> 00:43:57,680
quarter.
They sold slightly more than

848
00:43:57,680 --> 00:44:01,840
that and they're selling it, you
know, US 2500 as they like to

849
00:44:01,880 --> 00:44:04,800
tell people they're unhedged.
So taking advantage of that,

850
00:44:04,800 --> 00:44:08,280
making pretty decent cash flow
while they keep working on

851
00:44:08,600 --> 00:44:11,680
Kiaka.
So it's 155,000 oz for the year.

852
00:44:11,680 --> 00:44:14,360
They should pretty comfortably
get to their guidance number,

853
00:44:14,360 --> 00:44:18,800
which is 200,000 ± 10,000 oz.
Interestingly, they pulled out

854
00:44:18,800 --> 00:44:23,240
29,000 oz this quarter from
North 1 S, So that comes out at

855
00:44:23,240 --> 00:44:26,600
7.2 grammes per tonne, grammes
per tonne.

856
00:44:26,600 --> 00:44:29,200
So not bad.
Not bad at all from the

857
00:44:29,440 --> 00:44:31,200
underground there.
They are very good.

858
00:44:31,320 --> 00:44:34,440
Oh yeah, the Alley JCATF still a
holder.

859
00:44:34,680 --> 00:44:37,920
Ding, Ding, Ding.
And I think that is us for

860
00:44:37,920 --> 00:44:39,720
today.
Very good boys.

861
00:44:39,720 --> 00:44:43,400
Sensational effort by you 2 on
the the the digging.

862
00:44:43,560 --> 00:44:46,000
All round.
All round Couple other.

863
00:44:46,080 --> 00:44:47,880
Effort by Tim Taylor.
Oh.

864
00:44:48,240 --> 00:44:51,800
And Greenlands mate.
Just Tim Taylor and Greenlands.

865
00:44:51,880 --> 00:44:53,280
Yeah.
That's a hell of a town.

866
00:44:53,280 --> 00:44:54,400
Cross Brownie.
Cross brownie.

867
00:44:54,440 --> 00:44:56,160
But Tim Taylor.
And you could and.

868
00:44:56,160 --> 00:44:59,800
Greenlands, Caleb.
Go to Mauritania, Caleb, you'll

869
00:44:59,800 --> 00:45:02,200
love it there.
Thanks for our bloody great

870
00:45:02,200 --> 00:45:04,240
friends at Mineral Mining
Services.

871
00:45:05,720 --> 00:45:06,120
Here.
Come on.

872
00:45:06,200 --> 00:45:07,640
So give me a ring, I'll help you
out.

873
00:45:08,520 --> 00:45:10,680
Who else we got boys?
CV, ground support.

874
00:45:10,680 --> 00:45:13,120
Sandvik, our good friends at
Grounded as well.

875
00:45:13,240 --> 00:45:17,800
We've also got the good people
at CRE Insurance, K Drill, MMTS,

876
00:45:18,160 --> 00:45:19,680
Australian Earthworks and
Haulage.

877
00:45:20,040 --> 00:45:23,440
And while you're at it, use a
Spark chart.

878
00:45:23,800 --> 00:45:25,880
Do that hoodoo money miners.
Sorry.

879
00:45:26,760 --> 00:45:29,320
Information contained in this
episode of Money of Mine is of

880
00:45:29,320 --> 00:45:31,400
general nature only and does not
take into account the

881
00:45:31,400 --> 00:45:35,000
objectives, financial situation
or needs of any particular

882
00:45:35,000 --> 00:45:37,040
person.
Before making any investment

883
00:45:37,040 --> 00:45:40,080
decision, you should consult
with your financial advisor and

884
00:45:40,080 --> 00:45:43,240
consider how appropriate the
advice is to your objectives,

885
00:45:43,440 --> 00:45:45,440
financial situation and needs.