Notes from LSE Webinar - 21 July 2022

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Notes from LSE Webinar - 21 July 2022

RNS 1 : https://polaris.brighterir.com/public/G ... ry/w9e6ndr

RNS 2 : https://polaris.brighterir.com/public/G ... ry/xjj67ox

Interview: https://youtu.be/HQZuX7UmHg8

Slides: https://greatlandgold.com/wp-content/up ... atform.pdf

***Quick edit of very messy YouTube Transcript export***

* Hello and welcome to the latest London southeast Greatland Gold live webinar, we're joined today by the Greatland Gold MD Shaun Day and once again many hundreds of you are listening in live and ready to ask questions for those of you who don't know me I’m Donald Leggett head of investor relations at London southeast and I’m your host for this event. This morning we saw the long-awaited announcement from Greatland the five percent share stake in Havieron has been priced by an adjudicator at 60 million us dollars under the rules of the joint venture previously agreed by previous management from Shaun. The adjudicator had two options to choose the price put forward by Greatland or the lower one put forward by Newcrest and no doubt with both options backed up by mountains of detailed evidence it's worth noting that in that RNS this morning Shaun is at pains to point out that this price does not reflect what he feels is the true value of Havieron so the plan for today is that Shaun will talk to slides for as long as he wishes possibly around 15 minutes with the rest of the hour allocated to questions and I’ll be taking those questions more or less in date order so please do keep sending those questions to us now we've got lots already but lots more to come without and don't forget us to give us your real name and keep them short and friendly. OK without more to do let's say cross over to Shaun…..was that the result you were looking for Shaun?
- yes it was I think from the process I think I’ve always talked about people should have the confidence that the present team is working in the interest of all shareholders to make the most of this opportunity and I think in that sense it was the most what we were looking for so look Donald thanks again for having me on the program again soon.
- We caught up last week and went through the presentation but this is really the presentation I wanted to give so today although we have a full deck of slides here I think what we'll do is just work through the new four or five slides try to do that in relatively short water because I know I enjoy and I think the people participating in this program really enjoyed that Q&A session so with no further ado let me just quickly walk through the new slides in this deck
- I will pause for 30 seconds because I always do love to orientate around our strategy I think we have a very clear vision of where we're headed with Greatland that's around our three pillars of delivering an expanded Havieron investing in the drill bit to create option value and have the next discovery and then finally a disciplined approach to future acquisition with that what I’d like to do on this slide is really just give a bit of a brief overview and for those who have kind of followed me in the past I’ve always talked about solving the transition issues in my first 18 months at greatly and this was an incredibly important transition issue to resolve and with this what we're able to achieve was the milestone for this option being initiated in terms of the price was effectively gated on that pre-feasibility study that came out in October so two months after that in December and I think I’d always kind of tried to be open with people that that would be the starting point of those discussions and what we were able to achieve was a five-fold increase so in those 64 days from release of the PFS today we improved the value of Havieron by a billion dollars an outstanding outcome and it was built up from first principles with the updated resource in reserve which had increased 50 percent and that delivered this uplift in such short order and I think shows us the trajectory of Havieron and so when I think about this I think about in March 2019 when Greatland entered that farm in and a much less understanding of the Havieron ore body what we had on a 100% basis around about a 93 million dollar whole of Havieron value
- walking forward to the PFS in late 2021 we had a valuation of 228 then although we're announcing it today with a date we valued it at the date that the option pricing mechanism was triggered on the 15th of December, we achieved this stunning transformation to 1.2bn and that's 12.9 times in that kind of ballpark two years from the farm in but it's five-fold, it's over five-fold from that pre-feasibility study and of course I’ve mentioned that trajectory that we have, we are in the fast-paced growth of Havieron, we're still going to expand the Southeast Crescent we're still going we're still yet to really fully form and discuss and understand that block caving potential and of course we continue to benefit from exploration success and as it happens our announcements were a bit like buses, you wait a long time then two come at once we also announced our six weekly exploration update and without digressing too much into that you continue to see the asset deliver
- the Southeast Crescent continues to tick over like a Swiss watch the northern breccia had some great hits but that eastern breccia was the new story for me bigger to the than we understood before we've stepped it out to the north and more high grade intercepts so that's becoming a hot, a good grade a high grade zonation for us
- so as we walk into the building blocks of how we achieved this outcome it was around that march release of our updated resource and reserve and what we achieved there was a 53% increase in the resource a 50% increase in the reserves and we delivered six and a half million ounces gold equivalent
- 2.9 million ounces of that was in a reserve so effectively was structured around a mine plan that we could demonstrate and that growth has been 43% compound annual growth since that release of the maiden resource in late 2020 and that is really testament that this is in this high growth phase and if we continue to see results like we have remember this is cut off as of December 2021 and over the last nine months we've continued to see tremendous exploration results so there should be confidence out there that this continues to grow this system as we deliver the growth drilling we understand it more we define it more and we can delineate the outcome more we remain in this rapid growth phase
- so although we are pleased that the value uplift is a billion and you know that that should be you know right at the top end of expectations, you know it's anchored around that PFS view and by bringing out that updated resource and reserve we shifted the paradigm
- we demonstrated more value because that is the building blocks of understanding value understanding the resource understanding the mine plan are the building blocks upon which you understand the mine and so that was a courageous decision by the team to decide to come out and unilaterally bring out that updated resource and reserve but essential to try to optimize this outcome within the structure that we had and to protect the interest of shareholders and that's what I’d undertaken to do
- that we would do the time energy and effort to present this the best way we could but what we were trying to do is get that outcome within the confines of the agreement
- so this today sets a price not a value for the asset, the joint venture agreement doesn't represent true market value in the opinion of the board and this very much is anchored off the back of that mechanism
- it's a highly prescriptive process and particularly the binary nature of the outcome, if the if you had were appointing an independent valuer and one party say puts you know the lowest bid and one party puts in the highest bid they can imagine, that independent person can come out with a compromise based on their value and anyone who's had their house valued as opposed to a real estate opinion on it probably understands that's inherently a conservative approach because it's about what you, it's about not what you know about what you can prove
- but within this process you had to choose one or the other, now I’ve spent 18 months thinking about the game theory of that and really if the other party sticks to a normal process and puts in a modest view on value you really cannot put at the top of the value and remember Newcrest are a very credible organization with a good brand they are the manager of the asset they have access to the information and they are the author of an incredibly impressive 350 you know odd page very detailed and high quality pre-feasibility study
- so those incumbent advantages were really substantial for us to have to address and that impacts the way we approach this because what we wanted to do is make sure that we could find the point where we could be successful in this endeavour and demonstrate the value growth of the asset and I think it's also worth mentioning because I’ve said that we the board doesn't feel this represents full value, we actually look to say well let's step outside the JVA
- Here is an offer, if the part, if our joint venture partner thinks it's worth less than this, we will pay you considerably more for this and I think that reflects the conviction that today is not what we regard as a true value, a true market value we would have been delighted to have transacted and acquired some of Newcrest stake for a much higher price and I think have we been successful in doing that I still think it would be absolutely compelling value for us
- we didn't put in the highest number we thought we actually put in a value where we thought it was still compelling but substantially higher than their position and our own for that matter and although I want to move on to the Q&A I do just want to wrap up around the process
- because previously I’ve identified and talked about that people should have confidence in our approach but now I can probably just touch on that briefly so we came out with the updated resource we had Stuart Masters who actually sits on the JORC committee co-signed that as our confident person , we had SRK consulting come in and endorse as a second peer review in terms of the reserves a similar process where we had EnTech come in and revisit the optimizations of that mine pla, had SRK come in endorse and again it was second peer review
- that information could then be fed into SRK to think about an overall technical report, overall understanding of the exploration opportunity this information could be fed into PWC for a very structured and comprehensive approach to a formal valuation built up on supported data overlaying that with the corporate advisor to make sure we understood it commercially and then we used another group which included Nev Power some of you might know was head of you know 50 billion Fortescue to come in and help quarterback that with me in terms of making sure we thought through the technical and commercial overlay
- this was an incredibly thorough process and one of the great things that this process really forced us to do was it expedited our cycle time for understanding our own asset and I think we feel really confident that we have a very comprehensive understanding and that we're able to convey that to be successful in a process
- so with that Donald hopefully that was a really good overview and walk you through those that new part of the slide there but I’m very happy to you know now engage with the Q&A discussion

* Shaun I think what you've just done is whet everybody's appetite they're all sitting there going oh my god that was an extraordinary story you've just told Shaun wait none of us have heard this before so that was quite a thing
- look I think it is a really unique scenario and certainly none of the group that we had working with us on this had ever seen a structure like this before so I think the way I articulate it is our obligation coming in was to make the best of these circumstances and ….

* Do you feel as though you have made the best of those slightly awkward circumstances?
- yeah look I I really do we're really proud of the work we've done couldn't be prouder of the team
- we had a great relationship with the team, I think they all kind of celebrated a little bit with in terms of achieving the outcome that we had advocated for but you know where there is you know to be open there is … yeah I’ve got to be measured the way I say this but there is some melancholy in terms of setting a price but we don't actually feel that's what we could achieve at a full market price,
- it's a good outcome but you know this is an absolute prize asset so yeah unfortunately you know I don't think I’m lucky enough that Newcrest won't exercise this option notwithstanding such a terrific you know multiple of what how they previously described value but I think you know it's such a high quality asset I have such conviction about its future that you know fundamentally it's a shame to see any of it go, it's a shame to see any of it go to value that we think you know we would buy it ourselves at

* Okay so let's open up to questions from the audience, Dip and James have both more or less asked the same questions let me conflate them…Shaun tremendous effort by the team with the GGP MRE and all of the related work around the option exercise and that's a fairly common theme people are pretty pleased with the effort could you please share the outlook and time frame for funding options around Newcrest both either taking up the option or electing not to
- so they have a 30-day exercise period so during that time they will inform us of the outcome, so you know we expect to understand that in due course
- I have asked the question but they haven't committed one way or the other at this stage which is their right and then there is a period of some months after that before financial completion so we'll work with them around that but I imagine once they've made their mind that they'd probably want to rip the band-aid off so to speak and you know complete in in short order

* Okay Nick asks firstly as a long-term shareholder in GGP I’d like to congratulate you Shaun and the team for the excellent whether you've handled all the legacy issues and it doesn't just mean this it means that you're the previous announcement you've managed to sort things out very you know within your 18 month time frame as you put it my question is can you please the next question is can you please clarify the current position on the original option that Newcrest has in a first right of refusal over our 100% owned scallywag tenement thank you
- yeah look that first right of refusal is if only if we went to as I understand is only when we went to divest that asset that is not our intent, it's a core asset it's a long strike from Havieron it sits to the north west that is the you know those structures through the Paterson run in a northwest trajectory
- it’s on strike I think that's some of the yeah as a general rule the best place to look for gold and copper is where it's already been found to be on strike along from that I I think that's you know one of the best addresses in the Paterson we have a significant number of targets there an ongoing drilling program so your expectation is we would not contemplate divesting it
- I I see that as core and the number one thing I’d like to do is unlock the option value in that tenement for our shareholders by tagging the next ore body and whether that's another Havieron you know that's you know hitting it to the moon
- but even if it's a half or a quarter of the Havieron that's still a tremendous find particularly when it sits next to existing infrastructure as that lowers the hurdle for economic returns, so it's a fantastic address it's a great post postcard to do exploration on and for all intents and purposes we have 100% of that asset

* Okay I think this is a natural place for me to interject and ask you about the relationship with Newcrest going forward, is it possible for you to summarise what your feelings aren't given you've gone through this and this process with Newcrest where does it leave you going forwards?
- yeah I think we probably try to go to some lengths in in the RNS to talk about the strengths of having Newcrest as a relationship and the strength of the relationship that we have with them
- I think at an operational level that's outstanding, we hugely respect their capability up there in in the Paterson covering both their Telfer and the Havieron JV team from an exploration point of view they are absolutely outstanding we work together collaboratively marvellously well
- I think in the past I’ve talked about you know some of their interpretations such as you know following the dolerite structure and identifying additional breccia zones is something that our team probably put less weight on
- the drilling proved that to be a great idea but two heads are better than one I think we've contributed some strong ideas as well so yeah I think it's a lovely relationship in that regard
- with JURI I’ve talked about we're still the manager and again that's a reflection that we cooperate, we work together I think I think we have a very strong and capable team ourselves, we have a very technical first principles approach to exploration and finally we also put a lot of sense in the dollar into the ground, we're very efficient we want to get we want to spend our exploration on drilling
- at the more you know corporate level with Sandy you know I like to think that's a really strong relationship as well you know
- we talk regularly, the relationship is warm certainly you know he's someone I respect and respect the capability of their organization so I think operationally at the most senior level we enjoy a really strong relationship and maybe to expand be more open I’ve talked perhaps before about in a general sense I think when you enter a contract with someone and especially a partnership and you know partnerships need work and activity to keep them strong and we and we put effort into that but I think it's never necessarily wise to put in something which is you know a win-lose type scenario where you where you do have different motivations and I think putting this behind us in terms of this now being resolved you know creates you know really good alignment going forward I you know I think it's really positive I think testament to the relationships that maintained a good relationship through this period but I think we have even a better platform together moving forward

* Okay David asks a related question asking that relations with Newcrest is still extremely good up to and beyond planned production would you agree that although so you're the junior partner in the JV that GGP are now a driving force in the future development of Havieron?
- well look that's a lovely yeah lovely question you know the relationship is strong and it's a you know we think it's a multi-decade relationship so you know it's important for us to value that relationship just like Newcrest does
- look I want to be measured here you know Newcrest is an incredibly capable organization that we respect the you know in in terms of us you know bringing out our own resource and reserve which is effectively a well is a mine plan and effectively you know an update of that PFS I think will be interesting to see whether Newcrest does announce its resource, how that compares to the technical work our team does
- so I I wouldn't say driving force but I’d like to think of it in again in terms of joint venture and partnership two heads are better than one
- I think we benefit greatly from Newcrest being there if Newcrest wasn't there you know to have eight you know eight or seven rigs currently spinning at site, to have started the decline well in advance of studies to have access to that infrastructure, access to the people and the resources, the smooth passage through first nations engagement, environmental they bring a wealth of organizational capacity and although I think we've done a tremendous job at building our own organizational capacity and I’ve talked about augmenting exploration adding resource geology you know mining processing legal and commercial and being more rounded being better placed to understand, be able to articulate that value of Havieron and being a good owner of Havieron
- you know Newcrest is still a global major and you know despite how proud we are and how motivated and engaged our team is Newcrest also has marvellous capabilities and we respect and acknowledge that

* Okay Keith… this this may come as a bit of a shock this question do you think Havieron will be brought out?
- Well you know it's a world-class asset, you know large companies want world-class assets with you know with multi-decade production profiles so I think the way I think about it isn't creating value is that the best way to create short-term value is to focus on creating medium to long-term value
- so we operate this asset to create long-term value for our shareholders to operate it well to understand it and deliver its full potential
- I think we are presently on a tremendous growth curve at Havieron
- in the next 18 months we go into production say 18 months after that you're producing you know three to four hundred thousand ounces per annum and the cash flow associated with that, that's a tremendous milestone
- perhaps around that time you're starting to articulate a scoping or pre-feasibility study around a a bulk mining methodology perhaps cantered on that the good grades we're seeing in that eastern breccia
- I think that's another huge milestone in fact, so over the next you know two to three years I I think we're on this wonderful growth curve in terms of continuing to understand and better understand the size and opportunity at Havieron and demonstrating and de-risking that
- and all of that should propel us along the value curve so I think there's always risk but I also think we have a shareholder base that wants to share that vision and when I go and talk to institutional shareholders I’m having the same conversations today what I’m talking about is having shareholders that share that vision throughout long-term value but also see that immediate trajectory over the next say two to three years and I think that's important, there is risk I think there is asymmetrical risk in our share price
- if I and our team and the Greatland team are not successful at advocating and communicating and demonstrating the value of Havieron and our overall portfolio and continuing to build the share price and the value of our company in line with the bigger larger better understood and derisked Havieron at some point some party will decide that's a compelling value opposition
- so you know the focus is on me as the incumbent is to make sure we successfully can keep up our value with that growth in the value trajectory at Havieron

* Okay Chris asks can you tell us how much we've drawn down on the Newcrest loan, I would like to know how much of the 60 million five percent option million will be left and what it will be used for?
- so within that as I understand the JV agreement you know Newcrest would have a right to you know to prioritize repayment of that facility
- accordingly it would be a largely kind of cashless transaction
- you know that facility size is 50 million if that was fully repaid you know presumably there's around USD 10 million dollars left over so that is potentially a likely scenario, again this is all prefaced on whether or not they exercise that option but that would make us debt free
- so we're kind of 18 months away from production and we are debt free, we already are communicating with banks
- we have a relatively limited capex profile to achieve production but again I think when we talk about the conclusion of this transition period it's that's the final resolution you know
- is the option being exercised, what happens with those funds, what is our new funding location, so I think it's all extremely positive but you know I think we're still yeah still you know interested to see how this process concludes because all we determined today was the price of that option and we determined that price was a substantial multiple of that original PFS study

* Okay so Chris’s next question also it just flows on how far off are we to announcing bank financing for our share of 70 million you know for the capex and you will need that there
- yeah good question Chris well look yeah we continue to engage with banks
- I think typically people would understand that you don't bank pre-feasibility studies, you bank the bankable feasibility study
- the feasibility study itself, I think in our case that might be particularly the case because remember our PFS isn't an approximation of the final feasibility study, we've actually taken a 2 million ton PFS and we've recommended a 3 million ton study into the feasibility
- so you are going to see that 50% bigger which obviously does have some impact on the cash flows and the production profile you're forecasting
- offsetting that this is a pretty special opportunity, you know here we are with a world-class ore body, tier one jurisdiction next to existing infrastructure with a global major as our partner
- now that perhaps gives us the opportunity to outperform that but I would always recommend and if someone asked me when you can fund a project I’d talk about it at the time after release of the feasibility study but equally we have a lot of interest now and we continue to pursue and understand it and seek to optimize their outcome for our shareholders

* Okay, let's get back in back into production once again with Tibor, what's the current vertical depth of the decline, how much further vertical depth is required to reach the top of the ore body and how soon will that ore body commence mining?
- yeah look so I think that update in today's you know exploration it was effectively a quarterly update also gave an update on the decline the acceleration on that decline I thought was tremendous
- you saw since the last update we've averaged just under three and a half meters a day which is you know a complete shift in productivity and this is all consistent with what the expectation has always been what we've talked about from day one that Permian layer from surface is not homogeneous
- with depth it's a more consolidated material as you get through that first kind of 50 vertical meters you get away from that really soft material, you get away from the paleo channels and you can drive your productivity and I think there's an opportunity to continue to improve
- in terms of when we see the decline coming to fruition we talk about first production in early calendar 2024 so you know ballpark 18 months away so you know the we're moving very steadily although we're also measuring the language you know
- we continue to have a soft Permian zone, better but we continue to be measuring those forecasts but you know certainly being able to now observe the acceleration of efficiency and progress in the decline I think gives everyone a lot of confidence

* So how much if further vertical depth is it required to reach the top of your body it does ask a very specific question there
- yeah so you're looking at it 325m in vertical development still to go but again you have that ongoing kind of you know acceleration and clearly if you look back you know until up to that march quarter you know there were some modest yeah development advances
- I think the team's done a good job there at turning that around and now they've got their skates on so to speak

* Okay next questions I’m going to conflate two questions here Stu and Dip they both ask questions about the development ore, so how will development ore pre full production be treated will this be on a 75-25 basis says Stuart and Dip says can you please discuss development or versus production or as the decline proceeds towards the ore body and how might this play a part in the pre-production aspects of Havieron?
- okay well firstly I’m still in the 30 70 you know paradigm but clearly today really sharpens our attention on it perhaps being a 25% share
- but so when you think about development ore I think just to be very clear that Permian layer is barren there is no development ore through that period so you're not going to have a you know a two-year runway of development or anything like that
- once you're into the country rock then you get into ore, you know in short order the infrastructure sits outside of the ore body but you're driving relatively quickly
- in terms of that development ore as you drop, you work up your development drives, that ore is also would be on the same proportion as the joint venture
- I mean I answer the question is 30-70 so it would continue to be on that economic value

* Okay now I’m going to hold on to your hat Shaun I’m going to ask you a difficult one, I think we have we should respect the shareholders point of view on this and that some of them think that all is not so well worth NCM and Nathan is in that camp and Nathan says is NCM in any way shape or form hindering Greatland’s growth expectations as multiple share multiple shareholders are voicing major concerns about NCM their past responses or lack of reassurance for shareholders is key rather the key right now so it's back to that relationship with NCM is is all well
- look the relationship is all well to coin your phrase the yeah and in sympathy for Newcrest you know it's our obligation to look after our shareholders not Newcrest obligation
- we try to do that I’ve talked about you know developing the platform resolving the transition issues having the capability to be good owners of Havieron and i'd be able to articulate it's its value and making occasionally the tough decisions and going to our joint venture partner and saying we feel it's in the interest of our shareholders to update this resource and reserve and we did that cooperatively you know
- we shared it with them you know a ahead of announcement people might recall they made a brief statement when that came out but it wasn't unduly unhelpful, I thought it was constructive and the conversations leading to that were constructive
- so of course this is where I you know I think it's a nice milestone to get past this because by doing it I think it's always good to feel the alignment you know
- I'd like to think you know really we just want what's both what's best for Havieron and that should deliver the best outcome for our collective shareholders but the other lovely thing here is our shareholders have more exposure to the upside of Havieron so as we commit additional drills and again I think having the support of a global major accelerates all that
- it's our shareholders that disproportionately benefit from the growth of Havieron from its rapid expedited pathway to production so I think there's a lot of benefits there and really you should look no further than this call and to my colleagues at Greatland in terms of who has a responsibility to look after our shareholders interest

* Okay you may not want to have a go at this but Nitesh asks what is GGP's valuations at market value from this process so in other words you've just put out a big shiny new number into the marketplace, extrapolate from there and what you think your market valuation might be or as you've said you don't particularly think that the 60 million is a fair market value and in which case what would the new and enlarged number?
- yeah look yeah I think you've always got to be a little bit cautious at giving you know like share price kind of predictions or targets but I think I might speak about this more about the trajectory of growth
- I think what we achieved in today's announcement was demonstrated the growth we demonstrated that this is in a high growth period of its development and when I think about it and I’ve kind of commented on this before so I’ll be brief but you know as we take this into production as we see the cash flow from a three to four hundred thousand ounce per annum de-risked sub-level open stope down that Southeast Crescent I think that is a de-risking event as we understand we can define and articulate the bulk mining areas and be more specific and demonstrate a pathway to production
- I think again that's a value up list so I I’ll more talk about it in milestones and I think there are a number of milestones ahead of us the value is not just the what we understand what we have delineated as resource and reserves at the south east crescent to date you know we have a high conviction that continues to grow
- we have the higher conviction that there will be an opportunity to mine that eastern and northern breccia in due course and there's multiple ways you can tackle that you know
- you can have block caves, you can have sub-level caves which Newcrest use at the Telfer mine next door, that's a top-down mining methodology or you could do something more like a sunrise dam development where they driving off their decline and take out the highest grade elements of it
- so there's multiple ways to to unlock value from those areas but I think possibly the bulk mine suits this a lot because we have that installed infrastructure
- we benefit from Telfer this huge gold processing plant 20 million tons per annum and the 10 million ton train b is intended to be dedicated from to Havieron from first ore in you know 2024
- we'll be using subject to the feasibility study say three million tons of that so there's six to nine million tonnes available from a bulk mine that can be put through existing infrastructure
- so normally when you're trying to optimize mine you want low mining costs you want to take a lot of the ounces but the more bulk you make the greater your capex the bigger the mill you've got to build and the higher your funding hurdle
- when you don't have that it does change the way you think about optimization and perhaps lends itself to a large amount but that's all subject to in due course defining and delineating the exploration and potentially in due course of resource and then being able to potentially put a mine plan around that but we like what we see we like the trajectory

* Okay you didn't just put out a five percent evaluation announcement this morning you put out some excellent drill results as well which you phrased as a sort of a quarterly update in some respects, Dip says excellent drill results as always and perhaps being overlooked due to the option exercise outcome what are you're what are your thoughts on the latest results in terms of prospects such as grade resource growth in terms of different zonations and dimensions depths of your body etc?
- yeah look I I think I said before it's a it's a little bit like buses I was a bit disappointed of all the days that the announcement happened at the same time as that update because you don't want that to be overlooked it's a good and important and positive or in another positive exploration update the you know the south east crescent just continues to give
- but for me again I think that that eastern breccia stole the show a little bit just because of the you know seeing it step out to more seeing more high grade is really positive
- so yeah a little bit disappointing that they came out on the same day but it's still an excellent result and continues to demonstrate that ongoing growth and the resource that we provided in march had an early December drill cut-off date so really there's actually what are we now seven months over seven months of drill data that you've seen that has come out since then
- so that you have some feel as to that ongoing and positive our trajectory

* And the eastern breccia, talk to us, just give us more information about the eastern breccia and your hopes for it
- well look I think the hopes is it sits potentially really neatly as a first bulk mine, it sits a little bit lower than a northern breccia
- if you do a block cave that's a bottom-up mining methodology
- it starts to seeing a reasonably consistent higher grade than you see in the northern breccia, nothing wrong with the northern breccia but just like the Southeast Crescent is higher grade perhaps the eastern pressure is trending that way as well
- so again that's another reason to prioritize it and then thirdly it sits away from it so you can mine that area in conjunction with mining through the top half of that southeast crescent as a SLOS mining
- so I think for a number of reasons you know if you ask me you know what my hopes and you know the opportunity there, it would be you know a first bulk mining zonation
- I think the other thing is not to lose sight of is those high grade intercepts down the southern end
- that's a target for us, high grade areas are tremendous, they generate you know a high volume of free cash flow
- you move the same amount of rock for more gold and that they can be great for quick and short repayments of capex and also for making broader areas economics so I think high grade zones again attract drill bit
- and there's also the gap zone between you know Havieron proper and into that eastern breccia that needs to be drilled and again that's a that's a great place to be putting some drill holes into to open up a new zonation so look there's lots to like in that part of the ore body

* Okay let's turn to green metals I know that when you spoke at the town hall meeting one you said you loved Havieron because it was gold copper all of all the world's greatest gold mines are gold copper you also said you love diversity because that gives you a stable base to the business see I was listening Shaun I was listening, PaddyGall picks up on that point in a lateral sense when he says that Damian was discussing the base metal opportunities that Havieron has in his presentation in Perth yesterday, can you add any colour or do we need to wait for Newcrest to break the news?
- yeah you I’m Donald you've answered the question so well you've left me much places to go
- the copper is yeah it is tremendous at say 20% of the ore body and yeah it is it you know the best gold mines have copper credits in terms of the base metal, I think that does capture the imagination of the geologists
- we love the fact that we have 20 percent copper which is a base metal and we want to understand what other opportunities there are around base metals
- one of the interesting things about the cycle we've just been through and you know I think people have heard me articulate a lot we tried to do a very thorough and you know this is nine months of work
- we took this we took our obligations here seriously , it's accelerated our understanding cycle, it's accelerated the cycle time for us to process data for us to then take that data and update a resource to put exploration understanding and have targets in mind and delineate zones
- the cycle time to understand how that would feed into a mine plan so I think it's really accelerated our learning curve around the asset that is to our enduring benefit so the effort of the last nine months isn't just around the outcome today I think it's also around our knowledge and although a lot of that knowledge and the understandings that we're all part of a negotiation and an advocacy process I think with that now behind us I think it gives us the opportunity to think about how we can communicate that to our shareholders to help explain why we saw this you know billion dollar uplift in value based on the data that existed kind of back in December so I think that's very much of interest and yeah we don't necessarily have to wait for Newcrest to decide to move there just like when we updated the resource reserves for ourselves
- When we think information is material to our share price we have an obligation to share that and we take that seriously so it's always a balance
- we like to do things our first instinct is to always do them together and collectively with Newcrest because I think that gives the most level of comfort when both joint venture partners are making announcements together
- that remains our preference it will always be our preference I think we've been you know largely very successful and yeah I think there's been a you know a couple of questions that's gone to the relationship of Newcrest
- you know Newcrest releases its exploration results quarterly, now we do ours six weekly so we fit two results in there quarterly period, they accommodate that so yeah it's less material for them
- they probably don't need to but yeah I think that's a an example of where we announced but they don't but it's done in a really cooperative way and then it comes into the quarterly where we announce together but again it's a triumph of that joint venture relationship
- so I think we can we can when we need to chart our own path but also we'd like to do it cooperatively and with our JV partner

* Okay you may well feel as though you've already answered this but it is a it is a pertinent question so I’ll let you be the judge of it … Graham are you intending on producing updating an MRE based upon the drill results as at the end of June so that investors might be able to compare a bullish view of Havieron with a rather conservative view of Newcrest?
- look we we've updated it with light I think Newcrest has as I understand it and I’m not, don't come from Newcrest obviously I understand that they're going to update their resource on Havieron you know unusually for them I think in their annual report so that will come out I imagine around the end of august
- so that I expect we'll have a drill cut off yeah around the time of our own
- the so I think that then we fast forward to when is the next update perhaps as part of that feasibility study but again that the cover for that drill data I think if we use the PFS as representative that drill data cut off from memory was the first of February for an October release so that's again a reasonably slow burn
- we'd like to update we'd like to keep investors informed, I think the new normal cycle which didn't apply this year with Newcrest is to update in February we'd like to have Havieron as part of that update and make sure that our shareholders get an updated view of that in February next year
- that's inside a 12-month cycle which I think is considered good practice so I think those are probably the two points
- perhaps there's a an interim update there's probably three updates you know Newcrest has data coming out with their annual report, there's a feasibility study expected in the December quarter and presumably end of February kind of update which hopefully the parties do together
- so there we do have a sequence of updates and if GGP again felt it was to our shareholders interest and really incumbent upon us to update that ahead of time or with more updated numbers we'll always consider that

* Okay back to the back to the base metals Dip says could you talk about nickel please
- yeah look that's you know we think there's additional opportunity for these minerals there
- we assay for it it's not part of what we release

* Do you find it though I think it's what they're asking?
- yeah well I think there's finding it and there's finding it in commercial volumes so that's something that we keep I think as a GGP team we we've got a little bit of focus on
- so yeah I think potentially with that accelerated learning curve that we've had through this process it does position us where we can you know think through that and see if we can't knit that together
- our preference if we were going to comment on that publicly would again would be to do it with Newcrest but if we feel we need to provide an update I think again this is an opportunity where we think of things first with ….a equally with the joint venture hat on and around our obligation to our shareholders
- and we have an obligation under the market to release material information, we have an obligation to keep it informed so you know that's something that we try to understand but we also have confidentiality agreements which are you know undertakings in the JVA
- so there's a balance there's a negotiated path that that we try to apply but you know watch that space, it's certainly something that our geological team spends time energy and effort trying to understand

* Keith says can you provide us with a full 3d visual of Havieron he means can you provide us with a form of video and someone at the town hall meeting was also after the video, so a video a 3d simulation might not be possible in terms of your comms?
- yes look Keith good question, it's something we've thought about again that the accelerated curving, accelerated cycle time that that we've had really pressed upon us but you know to our enduring benefit means we have a really you know strong understanding of that database so it is something we're looking into
- what the final form and shape of that will be time will tell but yes it's something under active consideration and I think we're even kind of preparing the data for it
- whether it goes ahead or not I think I think it depends on exactly what we think the product we can provide but we are actually happening to be actively looking at that so great question

* Okay thank you that was a very positive answer Mr ia ripper I’m not sure if that's a real name are you the real Mr i a ripper… anyway he asks a very sensible question about Ernest Giles in the future ….Shaun do you see Ernest Giles as GGP’s first 100% owned producing gold mine?
- it's a lovely question so the look I I think I’ve been consistently open that I really value and think highly of that ground, Archean greenstones are associated with a majority of west Australian gold discoveries they are tightly held heavily explored
- we have one undercover which is also I think competitive advantage in exploration, for some with long memories Newmont did have a look at that once upon a time pre-pre-me my understanding is their Australian team advocated to bring that into a joint venture into Newmont at some point that didn't get didn't resonate with Newmont Denver in terms of their overall global portfolio but I think it's again ground that even a major is interested in and they had some proprietary tech that they shared with us around the opportunities there and we're kind of itching to drill those
- so and now kind of fast forwarding to today with a larger balance sheet larger market cap and better access to capital the way I interpret that is it makes more sense for us to take an asset up the value curve i.e to spend more on it to define it better
- so if we were to transact from it we get it full value and to be even more open yeah look absolutely love to bring 100% owned asset under production so if we did discover the right rocks there I’d be delighted to take that through the production and you're my background are in producing entities so itching to get there now

* I do apologize a very sensible person asked a very sensible question, would you actually buy your own rig and use it on something not you didn't mention Ernest Giles but it could be Ernest Giles on one of your tenements and actually get it into production I mean does that make economic sense?
- yeah and I look at some points in the cycle particularly at some of the large companies I’ve previously worked at we've looked at building our own rigs or owning our own rigs look I think to do that you'd really want to make sure that you had a very clear plan as to how you deploy them for a long time
- right now in the Paterson you typically demobilize for three four months a year around that real hot period we don't so much to that at Havieron although we actually did demobilize this year for a couple of months but we've been going hard at it for about two years I think I just felt everyone needed a break and some of those rigs needed to rebuild
- but right now we actually demobilized for a period of the year so we wouldn't be efficient use of that those capital of those rigs
- if we did have full year recap drill campaigns I still don't think it would be our first step, one of the things I think we do is invest in relationships
- it's been really hard to get rigs in Australia over the last few years, that hasn't been our problem you know some of those drill camp contractors you know I’ve treated with respect in in previous roles and have relationships
- I think guys like Roger and our team have beautiful relationships with a lot of those guys and again those relationships the mutual respect pay dividends when rigs are tight that doesn't mean they give them to you free but you know it does mean you get access to them even when they're under strong demand
- so I think the culture of our organization means we haven't had a difficulty getting rigs that doesn't mean it's not hard but we've been able to achieve that so it's not the first thing I do but it is an interesting concept and I’ve certainly done the maths around optimizing that and the beauty of doing it but I think specialization in in rigs and the teams, having experienced drillers maintaining those workforces are all reasons why to be open with you I think it makes more sense to use contract drillers

* Okay good answer and here you go a slightly tricky one, a slightly personal one as well James and Stuart ask are the directors now we're able to purchase or sell shares or are we still in a closed period?
- I'd have to double check because to be honest it hasn't paid the no this has been the focus but I I think we'd be out
- so I I think after a long period where we're probably out now so it's certainly something yeah I know a number of people have been thinking about over the last six months
- so again you know it'd be inappropriate for me to give guidance on that other than say we're out
- I think previously we've said there would have been times where people including myself as it had would have liked to have bought shares had we had the opportunity to do so

* I have heard you say that indeed you said that last week with apologies I’m asking this in a slightly jumbly fashion which annoys me because I like things to be structured and neat so I do apologize but we're back to Ernest Giles and you mentioned that in Newmont all those years ago had data for Ernest Giles, someone's asking here do you have access to that data which is a slightly curved bully tricky question for you but presumably be nice if you did?
- yeah we do a lot of that was shared with us and certainly the outputs of that
- so that went into I guess some long standing drill plans that we have
- we get you know one of the nice things about not having access on an area is the geologists have lots of resonance time to really optimize where they want to drill
- we've probably you know we've had that in spades there at Ernest Giles so when we do get access finally I think it'll be you know we have some priority targets which are informed from you know the you know some really interesting discussions with Newmont and the own internal and with the passage of times those get further scrutiny further refinement so we're certainly kind of fully ready there

* Okay Chris asks have Newcrest recognize your upgraded MRE yet
- so they're coming out with their updated and my understanding I should say of the Newcrest communications is that they're going to come out with an updated MRE or resource in with their financial statements which I understand what I have not verified is end of August which is kind of typical in Australia so that's my expectation
- but it's definitely a matter for them to decide but I’m sharing you know my casual observations of what I think

* Fantastic very kind of you too, Ivan asks hello Shaun or he says hello Shaun a very positive outcome major hurdle passed, so big thumbs up there well done I recently read some speculation about you putting the northern star team back together can you comment please
- hi Ivan thanks for the question look I I think if you went around my office there's a there's a few people in there I’ve worked with before
- I’ve worked in three incredibly successful organizations across straight Sakari and of course northern star and you know you know one of the other companies I sit on just as a non-executive director the MD there is a technical head of northern star so it's a lovely network that group of northern star people
- I remain in contact with a lot of them and it's certainly a good rolodex to bring in them or to sound out from them high quality people that they can introduce and trust and respect so yeah I’m always a little bit sheepish to go back to places where I’ve worked and kind of you know take people away but equally if people are looking or people express an interest in joining that's a great you know recruiting through word of mouth and relationships and knowledge I think is fantastic
- you get a much more certainty about the outcome and again if you look around our office it could be close to 100% of people are kind of one step removed to one of us not necessarily to me but to one of us and I think that's part of the reason we have a high quality team, close knit team and a good culture and a team that's delivered
- so it's so certainly on my mind and if we had the right asset to put into production I think there's I’ve got a good rolodex of people

* I noticed that you tweeted this morning in praise of that team and last week you described it as high functioning so there you go twice you've praised them in a week I mean that's enough you know stop there Shaun
- and Donald I appreciate your praise of my gift work thank you very much

* I’m stunned I actually remember the things that you say right here we go Jonathan….. Shaun thanks for stepping up the investor comms is the relationship with Newcrest remaining positive enough that if Greatland found another Havieron style deposit on a sole tenement you would go straight to them or would you open the door for a JV to all the other majors, Rio for example?
- well let me answer that in in three parts
- well firstly and I’ve probably touched on this in in some of the other questions if we found something we've got a bigger balance sheet bigger access to capital both equity and debt where we perhaps don't need a partner we perhaps keep that all for ourselves and develop our own 100% asset, I think that went to the question about a network of northern star people from I think Ivan and broader so I think we have the capability and appetite to be a multi-asset multi-billion dollar platform
- the second part of that question look the relationship with Newcrest is good we respect them yeah they've got a magnificent plant up there in in Telfer it would almost be a crime to have to build another plant in the shadow of that so you know naturally we would talk to them we have a joint venture I think what it would do is strategically give us an ability to bring that to the table and say we're going to bring this in but that gives us an ability to rebalance this you know, we wouldn't just bend it in for free it would be how can we make this a better merged outcome because we are now contributing additional assets to the JV but we'd be delighted to do it with them they're a great company global major and you know their capabilities outstanding
- but thirdly competitive tension is really good you know if now I think because we have a relationship because we have organizational knowledge because we have an understanding of their infrastructure naturally Newcrest are really well positioned if we went down that path but if someone else is able to kind of engage with us and provides a sensible alternative you know that should only improve our outcome so competition is good, competitive tension is good so I think you can kind of have the best of all three worlds there you can understand whether it's best to keep for ourselves and develop we can leverage our existing relationship with Newcrest and the existing joint venture structure or we can add competitive tension and perhaps that other party provides a better solution it is horses of course so all are on the table and I think about it in terms of optimization of scenarios not in terms of being pre-baked

*Fantastic I’m going to draw a line there and it's great to hear such good news coming from Havieron well done Shaun well done senior team and thank you so much to the audience for hanging in
- if I can jump in and say thank you Donald and also for the 500 who stayed the whole time but everyone’s support, shareholders who got to listen in and participate for some or part or you know it's certainly very stimulating for me I enjoy committing this time, I enjoy the questions, I enjoy the transparency and the engagement so thank you for the platform and thanks for the engagement.

The End.

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