Campbell Hello! Thank you for your talk time by about the latest developments at FOCUS MINERALS.
As you can imagine, it's all about me before your bid for CRESCENT GOLD (ASX: CRE).
In our last interview, was your statement that your company's focus would be on their own projects to drive growth forward.
Thus, the takeover offer for me was very surprising.
Why do you think the acquisition of good for CRESCENT GOLD FOCUS MINERALS and is primarily for the shareholders of FOCUS MINERALS?
Campbell Baird
Thank you Hannes. FOCUS MINERALS this transaction is in the top five of Australia's top gold producers and bring our goal for 2012 is to encourage 230,000 ounces. FOCUS MINERALS this will make a significant cash-generating businesses.
For existing shareholders of FOCUS MINERALS, this represents a critical opportunity to achieve a substantial revaluation of the stock.
The merged company will have a gold resource of 4.5 million ounces. CRESCENT's current resource is located at 2.25 million ounces at an average grade of 2.1 g / t gold, with the
Most of these resources occurs in shallow Oxidgruben.
The current resources of FOCUS MINERALS are also 2.25 million ounces gold, g but with a slightly higher average grade of 2.6 / t gold, which is due to the higher mineralized underground resources.
The combined reserves of the merger would be approximately 746,000 ounces of gold and this at a grade of 2.1 g / t.
The numerical rating for each ounce of gold in the ground will be around 62 AUD.
This is a considerable understatement comparable to producing gold companies that are currently valued at around 115 AUD per ounce, and this offers the opportunity for reassessment. The price for CRESCENT GOLD is 0.059 AUD (FOCUS at 0.07 AUD) and thus we have an ounce for 35 AUD rated.
On paper, so it makes perfect sense for our shareholders to be rising generation of cash from the market and a compelling reason to re-evaluated.
It is also imperative for us right now because the timing is right.
We have collected a few months 40 million AUD, which we now use it to accelerate our growth. These include the new operations of THE MOUNT, the new open pit mines and the expansion of our exploration work at Coolgardie and TREASURE ICELAND.
These programs are now well funded and the individual teams reach their goals. We will be able to acquired a lot of our operational know-how to pass on the management team CRESCENT, to develop their projects accordingly.
We have conducted extensive due diligence examinations for CRESCENT GOLD and see significant opportunities to increase growth and reduce costs.
Hannes Huster:
Do you FOCUS MINERALS is the planned 90% of the shares and get CRESCENT what would happen if not?
Campbell Baird
Yes, I believe that we are around 90% and get more, because we have a very strong support. This comes from both the Crescent and board as well as the largest shareholder of the company, which both see the benefits of this transaction and brings the proven track record in the FOCUS MINERALS development and operation of mines acknowledge.
Is looking at how you cope FOCUS Mineras in the last three years. In 2008 we were a small development company with an annual production of just 17,000 ounces of gold.
THREE MILE HILL We have our mill successfully put back into production, two new mines from the liquor ends up cash flow and are now in a position for 2012 to increase production to 130,000 ounces.
This steep growth was no accident. We have a profound management team with great strengths and a proven track record.
We hope to have this dynamic style of leadership we can introduce also CRESCENT. I personally hope that we will look in 12 months on the merged company and then people see a company that has made a leap forward and pry the specially generated revenues further.
Hannes Huster:
I have also CRESCENT persecuted in the past few months and the company was not to be overlooked problems. CRESCENT generated each quarter a big minus and the share price has fallen in the last 2 years by 0.25 AUD to 0.05 AUD. CRESCENT Why had these big problems?
Campbell Baird
Crescent was in the last 6-12 months, been actually faces some challenges. Mistakes were made, and thus were also some opportunities lost. However, the company has some unique assets and we believe that these problems will not happen again with the support of our management in the back.
Hannes Huster:
Yes, if issues a tender offer for FOCUS CRESCENT, then you should also know how you can solve these problems.
How do you think it can create the management of FOCUS MINERALS, to reach the turn-around for the operations of CRESCENT?
Campbell Baird
I was in the last few months, several times in Laverton (CRESCENT projects), where I led a large due-diligence team. I was on the current team in Laverton also very impressed.
You have just set a new COO (Chief Operation Officer) who has an exceptional track record. You have a great development team in management who are very committed to the project running. You have to MACA (ASX: MLD) pursue a mining contractor and an excellent exploration team that can not wait more to the goals they have identified in the last 12 months to continue.
To create the turn-around at CRESCENT it comes to concentration, planning, discipline and management.
Focusing on the existing business is clearly to reduce the ore and make it to the mill. This we must put before everything else and at the center, in everything we do.
With the right planning and execution, we are very sure that there are growth opportunities. We have already achieved this even in Coolgardie.
Hannes Huster:
CRESCENT nor has any debt or the company is debt free and has made CRESCENT forward sales?
Campbell Baird
Crescent has not made any forward selling of gold and out of the credit for working capital, we have offered the company the company is debt-free.
It is a smaller amount of outstanding convertible bonds from the capital increase in May, but these are just in the company's shares traded.
Hannes Huster:
How to look after the management of possible takeover?
Campbell Baird
We will run the business as another business unit and integrate its headquarters in our office in Perth.
There are a lot of complementary skills and most importantly is that we have all the resources to implement the projects (the projects and the existing CRESCENT FOCUS), of course, the human resources that will enable the targets to CRESCENT . reach
Hannes Huster:
If the merged companies will need new money to implement these development plans or are you thinking, you can do this out of current revenues to finance the production of gold?
Campbell Baird
We believe that we will make the combined cash flows from production of 230,000 ounces of gold in 2012, unbelievably strong.
This is one of the main reasons for the takeover offer by Crescent.
Hannes Huster:
Let's assume everything is going smoothly with the acquisition of CRESCENT. How then can see the production targets for 2012 from (ounces per annum and production costs per ounce)?
Campbell Baird
We're shooting for a combined production of 230,000 ounces of gold in 2012. Then we'll be among the top five gold producers in Australia and of this we are very excited.
Currently it is still too early to discuss about the future total production cost per ounce in the merged company.
However, we believe that there is much scope to the cash costs in Laverton (mine CRESCENT) significantly reduced below the level that was reached in the past.
Hannes Huster:
In Australia, the opinion of the brokers is always very important. Have you feedback on the planned takeover of CRESCENT get?
Campbell Baird
I visited a lot of analysts and institutional investors, and explains what potential we in Laverton and where we see the strengths of the merged company.
The numbers are easy for everyone to add and when I explained the operational opportunities in Crescent, was quickly recognized the upside potential.
Hannes Huster:
Okay, thank you! Now briefly back to the projects of FOCUS. Can you give us a brief overview of the current state of affairs?
Campbell Baird
We have modified our business over the last few months. Away from only one mine in operation up to three producing mines where we go two straight up.
As you know, was the Tindal underground mine so far the mainstay of production and we continue to expect that we produce from Tindal 4500 oz of gold per month.
In THE MOUNT, we have completed over 600 meters on wells to get at three levels. We have developed two levels on the high grade vein GERMAN and started to dismantle the stopes.
We now have to test two jumbos for the working days and one additional diamond drill rig to falls, and some extensions of the mineralization of the surrounding structures. We have also made substantial progress in the new Tindal open-pit operations reached. Our goal is to raise the monthly production of 2,500 ounces, once the production is stable.
We delivered the first production from the ore by EMPRESS Open-Pit and the development of the Dreadnought open pits have begun. In addition, we have received end of the month is also approved for the development of Big Blow, our third open pit mine.
With all these developments, we want to deliver 18000-20000 ounces for the June quarter, which is similar to the previous quarter. Then all the new mines ramped up our production we see in the second half of calendar year rise sharply and we will reach the 100,000 ounces for 2011!
Hannes Huster:
When you think there is news from ICELAND TREASURE?
Campbell Baird
Hannes, we are very optimistic about our work in the Treasure Iceland project around Lake Cowan, but as I said, it is currently still a very early stage of development and we are focused to work with the current drilling a geological model for the area.
The drilling program on TREASURE ICELAND runs fantastic and we will start a 13,000 meter drill program in July Aircore to test our goals of the 6-kilometer strike length of the lake.
We look forward then to the market to deliver a good update.
Hannes Huster:
Why do you think that a purchase is currently FOCUS MINERALS?
Campbell Baird
Now, before we look at the possible additional projects CRESCENT, we are alone valued in comparison to the market at a discount.
FOCUS MINERALS next year alone will produce 130,000 ounces of gold, we have significant exploration programs for all our projects going and this will bring good growth of the resource. Alone to these figures, we are a purchase.
But you have also the character of a firm view, in order to determine a price.
We have changed our business in a very short time so that we have risen to become a leading gold producer and one of the fastest growing companies in Australia were mine.
We as a company have a clear desire for growth and management, which has already proved was very focused on achieving these goals.
Hannes Huster:
What do you advise the shareholders actually CRESCENT GOLD?
Campbell Baird
Our bid was recommended by the Board and its CRESCENT-largest shareholders. Together, we advise all CRESCENT shareholders accept the offer to become a part of this large gold mining company in Australia to be.
Hannes Huster:
Campbell, I thank you for the time and once again very interesting interview. For the future all the best and keep us posted.
www.focusminerals.com.au
www.dergoldreport.de
Last Updated (Friday, July 08, 2011 at 11:16 clock)
FML Price at posting:
6.9¢ Sentiment: Buy Disclosure: Held
(20min delay)