AGM summary.
Chair Wayne Trumble, Steve Abbott (SA), Alasdair Cooke (AC), Richard Monti (RM) and Daniel Davis present.
As usual the formal session was wrapped up quickly with all resolutions being passed.
[WT is going to apply to Guiness for the shortest period of retirement...30 seconds?]
After this the presentation used the document above with questions flowing thick and fast such that the meeting extended until the conference room was needed for another meeting at 10 AM.
A comment (paraphrased by me) from RM after we left the room applied well to the Presentation. 'If the questions asked cause the board to hesitate/prevaricate then one can draw conclusions as to how well prepared they are.' There can be other reasons, of course.
The responses to the "barrage" of questions was met with complete answers that demonstrated the depth of the scoping study which was the main focus of the presentation.
This scoping study (SS) is close to the level of a PFS of some 5+ years ago (AC).
The sequence of announcements was intentional (I believe). If the MRE update was announced then the SS would have had to use those figures and entail a delay. Using the 2019 MRE, which was effectively confirmed by drilling this year, allow for the upgrade to a PFS to happen quickly. Maybe a simplistic assessment but this was my understanding.
Questions were asked about funding but obviously no answers are possible at this stage.
My impression is that the Debt/Equity/off take equation is not causing the board to lose a lot of sleep. Some, yes but not much. One factor that could make funding easier is the forecasts of a Copper deficit and associated price hike coinciding with the timing of predicted first production.
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Why drop cutoff grade to 0.1% Cu?
AC highlighted this which may be an important factor once an operation has been bedded down and producing cash flow.
There is a lot of lower grade material that needs to be removed along with the higher grade (future?) ROM ore. Whether this is directed to waste or low grade stockpile can be an important issue. 0.1% Cu at $4 per pound equates to some $A10 contained metal per tonne. SS operating costs are around $A6.70 which makes such material marginal to slightly cash positive. Current plans are to create a LG stockpile and examine the ways to process it later.
1. Run it through an expanded mill in 4-5 years.
2. Take advantage of some of the rapidly evolving benificiation technologies [Early studies have already shown some promise.]
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Comparison with other Australian developers/miners is given in this graph.
I was a bit surprised to see Caravel just below the 'big ones'.
I have passing familiarity with all but Eva.
Simply categorising by location begins to make some comparisons possible.
The more remote deposits probably require a major to get them off the ground - Winu, W. Musgrave certainly fit that.
The 'in between ones' Cloncurry district and, perhaps remote in SA, Kalkaroo, have been around for awhile. All interesting deposits but not developed (?) yet.
I did ask about Hillside relative to Caravel. AC- Caravel large bulk tonnage operation Vs a more selective mining approach needed at Hillside was the main distinction.
The board obviously favour Bindi but it is difficult to fault the reasons that are mentioned in most presentations.
A large, consistent, predictable deposit amenable to bulk mining under relatively "shallow cover".
Good metallurgy.
Good location.
etc. etc
Main drawbacks
Low grade that is probably offset by economies of scale.
Finance for a "minnow"
Uncertainty about the approval process. Mentioned as an issue in passing. Time and patience to get everything prepared correctly?
They have employed someone to cover this. Other experts to deal with specific areas. Autonomous vehicles/drill rigs/remote operations were mentioned as an example.
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ESG
Electrification assisted by grid power that is going to be increasingly sourced from renewables. Likely to be cheaper than building a standalone renewable system such as is planned at W. Musgrave and recently developed at Agnew.
Electric vehicles, ramp assist.
[The proximity to Perth could have maintenance benefits for the vehicle fleet that ultimately impact on ESG]
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Native title
Extinguished.
Heritage and other surveys are being conducted but given the Bindi site has been in the middle of farmed land for over 50 years any sites are likely to have been lost.
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Tailings and stockpiles.
Low potential for acid mine drainage issues. Low content of environmental nasties.
Some proposed infrastructure that was going into the area where the synform extension of the east limb was discovered has been relocated. There will be some sterilization drilling over the summer along with as yet unquantified exploration.
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Questions were asked and answers flowed readily. The comments above are only part of what was discussed/presented.
Sorry I may come across as putting out the company line, but Bindi, apart from the drawbacks mentioned above, is an easy deposit in so many ways.
Will it become a mine? Only time will tell. IMO an excellent chance for one that will last for decades.
Then there is Dasher. Maybe Rudolph and Prancer a long way down the track.
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Regional exploration away from Wongan/Caravel.
Some work going on at Dalwallinu at present. No detail beyond this.
Mt William still mired in the appeal process. A glimmer of light for the end of this could be in the form of Alcoa's mining schedule. AC said the area could be mined for bauxite in a year or so and then Alcoa's objection could possibly be withdrawn.
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Well into the orphan period between exploration/Cu price readjustment and DFS/construction???
(20min delay)