Ann: Divestment of Non-Core Whiteheads Gold Project, page-9

With a range of opinions on GBR’s divestment of the Whiteheads Gold Project, I’m somewhere in the middle. Here are my thoughts:

What Works:

• Whiteheads was clearly not a priority compared to Side Well, and it’s hard to fault the logic of streamlining GBR’s portfolio. Stretching resources too thin would only hurt Side Well’s potential, which is where the real prize lies.
• Non-core assets sitting idle with mounting holding costs don’t do us any favours. Monetising Whiteheads, even partially, avoids dead weight dragging the company down.
• The deal structure, with equity in GWG and performance rights, does offer potential upside if GWG executes well. It’s speculative, but the door’s not entirely closed on future returns.

What Doesn’t Sit Right:

• With Side Well demanding capital and shareholders feeling the pinch after the CR, why wasn’t this deal leveraged for more upfront cash? $300k is a drop in the ocean when every dollar matters.
• Announcing this right after the AGM makes it seem like they were waiting to avoid scrutiny during the meeting. Transparency remains a big question mark.
• For those of us who remember the Cosmo Metals spin-off, this feels eerily familiar - a potentially valuable asset turned into a speculative bet. Will GWG deliver any meaningful value to GBR holders?

This divestment is a sensible move on paper, but it could have been better executed. Immediate funding would’ve been far more impactful given GBR’s financial situation, and the timing of the announcement doesn’t help management’s credibility.

Here are some questions I have of GBR management:

• Why structure this as a deal with speculative performance rights rather than a sale with upfront funding to support Side Well?
• Will GBR have any influence over GWG’s direction to maximise this equity’s value, or is this purely a hands-off arrangement?
• Why wasn’t this deal disclosed before the AGM? Will management commit to better timing and transparency moving forward?
• What has GBR learned from the Cosmo Metals spin-off, and how will those lessons be applied to ensure the GWG arrangement doesn’t follow the same path?
• Is this the start of a broader plan to divest other non-core assets? If so, how will these deals be structured to maximise shareholder value?

I know opinions on this will differ - some see it as a smart move, others as another misstep. The key question is whether GBR can start stringing together decisions that consistently rebuild shareholder confidence. Thoughts?