Hi allQuicksummary of the 573 Pg document of the Telfer/Havieron...

Hi all

Quicksummary of the 573 Pg document of the Telfer/Havieron Acquistion by Greatland.

No I’m notsuch a die hard to read the whole lot, but I did focus on the first 100 pages

Don’t takethe following as Gospel, nor a Greatland bashing, but the story is not quitewhat I thought it was.

Remember, Imight get this stuff wrong, but here is a quick interpretation.

I’m notgoing touch on money paid, nor who owns what.

But here iswhat I did find interesting.

Here’s thekicker the way I read it.

HAVIERON

The feasibilitystudy that was going to come out in the Dec qtr 2024, most likely wont come outuntil Dec Qtr 2025.

Greatlandwill need to spend another A$800m to complete Haverion…….now remember that wonthappen until the feasibility study comes out in around 18 months’ time. (Greatlandas part of their contribution has already spent A$96.8m over the past 3 years)………sowe are talking A$1.2B to bring ore to the Telfer Plant basically.

The extra A$800m will be funded from a $A750m Bank Debt letter of Support…………which is not binding andneeds the feasibility study to be completed, which again is 18 months away.

Havieronbase case 2.8Mtpa…..production of 258Koz AuEq……ASIC US$818oz …20yr mine life

At best itwill use 50% of 1 train…they get to 50% because its only on a campaign basis…stop/start......otherwise it would be 30% i recon

First ore fromHavieron in H2 2026 and first gold in H2 2027……………….(Remember Telfer would haverun out of ore by then)

TheGreatland Base Case production rate Ramp-up is schedule to take 2.5 Years......so 2029/30 ??

Recommencementof the underground development is not currently on the overall project developmentcritical path under the Greatland Base Case. (ouch)

TELFER

15 month initialmine life for production of around 426koz AuEq at ASIC of US$1,454 oz

Restart ofprocessing at Telfer should start late September or October.

Telferproduced for the six months to 30 June 45koz and 1Kt Cu

Newmont hasagreed to only run one of the processing trains from the processing restartuntil acquisition is completed at a rate of 0.925Mt per month.

They have astock pile of 21.9Mt of inventory, so will leave a 15 month stockpile forGreatland when they take over. Newmont will mine at a similar rate to it’sprocessing rate so could be a 21mth mine life for Greatland.

So there isa time period where Telfer runs out of ore and Havieron Ore starts where noprocessing can take place, unless they find more ore, however the companyintends to asses and if validated pursue, a number of potential opportunities toextend the Telfer mine life beyond the 15mth initial mine life

Lots oftalk of potential regional ‘hub & spoke” strategy enabled by Telfer Infrastructurethat allows it to incorporate accreditive regional opportunities such as jointventures and toll processing arrangements.

My summary

There's a massive amount of detail in that document, you have to spell everything out, warts and all as you are raising money, big money, and after all that you still need another $800m in 18 months time.

Glad Greatland have such an experienced board, and a well connected board for them to pull this off.......................i hope our board is up to the task that will become obvious in due course, as i now see we are in the box seat on the negotiating table.


The whole document rings a bell of lack of ore for such a massive plant and we have and will look at ways to fix that ASAP


There could be a few misprints in the above, have not proof checked it, my coffee time is calling, but hopefully you get the gist.