MAG (Summary) - On The Cusp of a Major Discovery, page-1282

We should probably make another addition to the quoted/below image list of potential buyers that are buying MAG on-market through Morrison.


--> EVN (Evolution Mining): $9.5 Billion market cap ASX gold producer (FY20 EBITDA of $1B+)


Some points that tick the boxes for EVN to be the Morrison buyer:

- own/operate the world-class/Tier 1 Cowal gold mine down the road from MAG
- increasing resource ounces at Cowal and will be in the area for a long, long time (11Moz defined so far at Cowal) (want as many additional ounces as they can get)
- EVN's strategy is to invest/expand only in Australia and Canada
- always on the lookout for suitable acquisitions
- their headquarters are in Sydney, a few blocks down the road from the Morrison office (so likely to use a close-by big-boy broker)


I attended Evolution's Investor Day Webcast this morning and got this bombshell from it:

- Right at the end of the 2.5 hour session,
- Q&A time,
- EVN Chairman gets the following question:


"Are you contemplating any expansion via acquisitions, farm-ins or JVs in and around the Cowal area in NSW?"


His answer confirms it as a hell-yeah we are:


"We're always looking at those sorts of things, Cowal is now a 9Moz resource. It's grown massively since we first acquired it. I think, I hope you got from Glen's presentation that the scale of opportunity there is immense and we are not of the view that we have finished discovering ounces on our tenements. We do own the Marsden deposit some kilometres away from there - we acquired that a few years ago. So, building the big strategic position and opportunities, if they're available and if they meet our criteria of improving the quality of our portfolio and adding potential low-cost ounces in the future; yes of course we're up for them!"


Hello motto?


Surely this puts them in front of Newcrest and FMG as the potential Morrison buyer (ALK I don't think is likely to be the buyer as I think that down the track ALK and MAG will merge into one company and consolidate their Bodas, etc - assuming neither gets taken out before then).


You can view a replay of the EVN Webcast from this morning here:

https://webcast.openbriefing.com/6481

It might ask you to register (if it does, go for it; it takes 15 seconds).


The EVN Chairman mentions the above extract right at the end of the recording (2:28:07 mark).


The even bigger giveaway is him talking about something else with a serious face, finishes talking with a serious face, has the serious face while being asked the above question, and as the question finishes being asked and he gets the whole question; he just can't hold back the smile as he starts answering it!


Can't blame him; they've acquired some great assets with him at the helm, including Cowal and building that up into the monster that it is.


Anyway, we will all find out who the Morrison buyer is once the MAG Annual Report comes out in about 3 weeks - unless they go berserk in buying or acquire some more shares off-market and give us a substantial holder notice before then!


Yes, I'm a bit excited!


Cheeeeers,

GB.