Ann: Clarification to Gruyere Underground Exploration Target, page-50

@ Agil, I managed to get a copy of the article from the West Australian. An edited extract is below.

The West Australian 12/04/2025

Gold Fields will have to cough up at least another $1 billion to buy Gold Road Resources, according to Ian Murray the man who bought the two companies together at their shared Gold Mine.
Ian Murray led Gold Road through its discovery of the Gruyere deposit in Central WA during 2013 and its sale of a half stake in the mining project to Goldfields for $350 million three years later.
South Africa’s Gold Fields has run Gruyere since first Gold was poured in 2019 and now wants to absorb Gold Roads 50% interest. This half stake is the prize for Gold Fields as it aggressively pursues a $3.31 billion takeover of Gold Road, which has stoked a public war of words between the two mine partners.
The all cash offer of $3.05 per share valued Gold Road at a 28% premium to its last trading price prior to the bid being announced.
Ian Murray who remains a small Gold Road shareholder after leaving the Business in 2018 believes the premium should be significantly higher. “As far as I’m concerned there is at least another $1 or $1.50 per share that Gold Fields should be offering” he told the West Australian. This would equate to a top-up on the $1.31b of between $1.08b and $1.60b.
Mr Murray based part of his assessment on the circa $30 million per year saved from removing Gold Roads corporate overheads, the net smelter royalty Gold Fields is set to pay Gold Road, and the Tax benefits Goldfields would be in line to receive. “Once Gruyere achieves two million ounces of production, Gold Fields has to pay Gold Road a 1.50% net smelter royalty on all ounces produced, so if you work it out, that is about $12m a year after Tax” Mr Murray said.
Gold Fields is taxed on a group basis in Australia, so they can apply the depreciation against the Gold Road acquisition against profits they are making from all their operations in Australia.
“When you take out Gold Road’s DeGray stake the offer is about $2.4b and the 30% tax rate gets you to about $700m. You work out a net present value of that – Its not in the offer either.”
Gruyere’s mine life currently ends at 2032. However, Mr Murray shares the sentiment of current Gold Road chief Duncan Gibbs that there is considerable underground mining potential.

NTF