Nothing groundbreaking, to be honest - but a very good presentation from Alex.
It was a bit of amateur hour to begin with, with the meeting starting 29 minutes late due to 'technical issues'. They had the presentation up and the stream was working so I think that was a bit of an excuse. When it came time for the chairman to speak they put in on mute for a few minutes before declaring that they were having technical issues there. I would put money on all of the delays being due to the chairman not being able to dial in effectively. It was very disappointing that instead of someone else reading what the chairman was going to say, that they just glossed over it and moved to the next item.
When it came to voting, over 17m votes for each item were not correctly cast. Really interesting number as on paper you would assume it would have to be LM3, but didn't equal the full holding - so maybe a nominee account stuffed up?
All very positive and seemed to be very bullish around Beasley Creek/Beasley Creek South. These are considered to be low cost starter pits for the Laverton operation and I got the impression that they'd found something bigger than they initially expected.
Alex spoke well and iterated how successful drilling had been - effectively 10 ounces per metre drilled. Also spoke of having a 1m ounce target, which had already been vastly exceeded.
Drilling at Greenfields and Brilliant has highlighted deficiencies in previous drilling approaches. This is highlighted in slide 13. Effectively anything outside the known steep lodes had been ignored right across Coolgardie; with the approach now moving to drilling into the footwall and intersections between lodes.
Effectively the strategy appears to be to attain finance for Coolgardie after the PFS is complete and then commence refurbing the mill. Hard to know if they were talking of sequentially developing Coolgardie then Laverton stage 1 and then Laverton stage 2; or whether Coolgardie and Laverton stage 1 will be developed concurrently. One thing was clear - Laverton stage 2 would be self funded form Coolgardie and Laverton stage 1...but that was pretty obvious going in.
Toll treating at Coolgardie is clearly on the agenda and they have received advice that they can run 3MH at 1.4mtpa. With only three resource areas to be included in the PFS (slide 11) they msut have a decent plan here; otherwise even 1.2 mtpa is probably overkill. Perosnal assumption, but Iwouldn't be surprised to see HRZ come in to the equation with Rose Hill and Brilliant North.
They're talking to a number of banks around finance but leaving equity open as an option. From all the language it appeared that debt is the number one choice. I got the impression that equity is a clear plan B.
Could've been a misinterpretation, but when answering a question around timing of the mill refurb at Coolgardie it was stated that this would be after finance was attained and I believe it was then mentioned that this (finance) would occur this year. This may have been a misunderstanding though - as Laverton finance is stated as being expected in H1 2021 and I'd assume that they'd attain finance for both projects concurrently...but maybe not?
In a nutshell - the focus is on the PFS and finance and once finance is attained we are looking at 9 months mill refurb time. So realistically looking at 2H 2021 for Coolgardie.
Tenement disputes were brushed over, but fairly so given that there is currently legal action being taken. A bit miffed that they haven't been a bit more upfront though. A question was asked around what measures had since been undertaken to stop it from happening again and it was stated they have put a better system in place and sufficiently resourced it with an experienced person.
That's the guts of it off the top of my head, but if anyone has a specific question I'll see what else I can remember.
FML Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
(20min delay)