Greatland Resources

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As you would. I'll just get the. Yeah, yeah, yeah. Good morning ladies and gentlemen. Welcome to the 2nd session of the morning sessions on the 3rd day. we have a couple of presenters, for the next hour or so. starting off with Mr. Sean Day. Sean is managing director for Great Land Resources. Sean. Ah, thanks very much, ah, I think I'm one of the koalas that, ah, that John identified in his presentation. Ah, so, ah, this is Greatland, we're, an Australian listed, stock, but also listed up in, ah, London as well. Ah, in December 2024, we did quite a, You know, transformational acquisition from Newmont, buying 100% of the Telfer, gold copper asset, and the 70% of the asset next door that we didn't already own, of Havron and consolidated that asset base. just to, to put that in context, we're up in the, northwest of, Western Australia. The, we just completed our September, sorry, our March quarter, and another really solid operating outcome, 80,000, 82,000 ounces, 4000 tons of copper, and that's put us to 250,000 ounces in the first three quarters of our year, in addition to that, 11,000 tons of copper. And importantly we generate another $260 million of free cash flow. We now have $1.2 billion in the bank, zero debt. And then we've generated that just over that 15 months since acquisition, we started with literally 0 in the bank. and what that does is de-risk the growth schedule, and the opportunities that we have in our portfolio. just to kind of orientate those people who, are, are less familiar with the story, you know, Telfer at a glance is one of Australia's iconic, gold assets. It's the, it has both an open pit and an underground Australia's third largest, processing infrastructure. And we're undertaking as part of the acquisition from Newmont and previously a Newcrest asset, we're reinvesting in the site, both in terms of productivity, but importantly as in the drill bit. We're undertaking a 240,000 m drilling campaign. You've seen the 1st 110,000, the benefit of the 1st 110,000 m of that campaign with our recent jog resource update, where we delineated 8 million ounces at at Telfer. Now we bought an asset that was meant to already be shutdown. But I look at my time at Northern Star. At Northern Star we bought 4 assets off Majors with a mine life of less than 12 months. All 4 of those, indeed all 6 that we acquired off Majors, are still operating a decade later. And that is the opportunity and I think now we've kind of been able to demonstrate that opportunity to the market with, with Telstra. Then next door you have Havron, this is just a world class asset, a brownfield development asset because this all will go through that existing Telfom infrastructure, but this is a very high grade underground deposit. The ore that it will displace from Telfer, the Havron ore is 5 times higher grade. So the opportunity this delivers to to to Greatland is really extraordinary. It's a major undertaking, $1.1 billion to develop Havron. And there's no relax about that, you know, that's gonna be a challenging opportunity for us, although it is partly built. The primary decline's already 80% down to the ore body, although we're putting in a second, decline from surface, a conveyor decline, because what we've done is we've come in and, taken over this asset, we've upsized it from 2.8 million tons to a 4 million ton throughput to take advantage of that big processing, capability we already have in situ at Telfer. And that's where the $1.2 billion debt free in the bank is so advantageous for us in terms of de-risking the growth. I'm just conscious of time, so I really just got focus on the key elements, but what have we done, we've kind of listed on the ASX, mid last year, and we've already grown to be Australia's 3rd largest gold, company, sitting behind Northern Star, which is effectively Australia's major evolution, excellent company as well, and then Greatland. And that's really off what was a very low base, so we've really been delighted with the traction. that we've got in the market, but again, it's combining the benefit of our UK European, base, together with now developing that Australian support as well. and why have we grown to be Australia's 3rd largest, mining company? Well, I think this slide, really tells the tale of that. We generate more free cash flow per ounce than any other company on the ASX. This is for an asset that we bought for $541 million in December 2024. We've generated $1.2 billion from it. In 15 months. And one of the competitive advantages of Telfer is its sheer scale. Quantity has a quality all of its own. And when you look at this, this I think captures that competitive advantage. We effectively occupy a quartile in that bottom right-hand quarter of this slide, which goes to cost per processing, per ton, where we're half the sector average. It is a huge competitive advantage for us and drives that free cash flow generation. But what have we done to also generate what is different because we inherited that infrastructure? I talked about reinvesting in productivity, I've talked about reinvesting in the drill bit, and that was, you know, I've done this 7 times before, where we've bought assets off majors and been able to create shareholder value. In the open pit, we've increased productivity measured by total material move by 49%, let's call that 50% in the 12 months since acquisition. In the underground it's been more dramatic. We've taken underground development rates from 175 m a month to over 450 m a month in since acquisition, that's a 250% improvement in productivity. In the mill, we've taken recoveries over a three year period from around 81% gold to over 88% in the last two quarters. With our copper circuit, it's been even more dramatic. We've taken it from about 71% recovery to 79, 80%. We've empowered the mill, reinvested in making sure you have higher availability, particularly through the CIL circuit, and it's delivered a lot of value for us. And then when you look at that top right hand corner, the the all in sustaining cost. We've actually taken about 1/8 out of our cost structure whilst we've delivered that productivity gain. That all in sustaining cost goes back to 2022, you'd expect some inflationary creep. In fact, you've seen us put downward pressure on our all in sustaining costs. We can't take full, take, take, can't claim benefit for the gold price rising, but we've created this positive jaws where you've seen gold price go up, our cost structure come down, and generate that higher margin delivery. And we've done all this safer, we've taken the site tripper from 10 to 14 down to 5 to 6 in that same period. And that's our laser focus as an operator. I mentioned the, the, the resource, before. As you can see, we, we bought this, we already knew haveron in the light blue was a major opportunity, with 7 million ounces delineated there. A 17 year mine life and on top of that 17 year mine life, there's another 80 million ounces that we didn't get time to pull into the feasibility study. So it's an exceptional opportunity. This is a multi-decade high grade tier one jurisdiction through existing infrastructure. But look at what we acquired at at Telfer, just 700,000 ounces. We've now delineated 8 million ounces with the 12 months of our drilling program. We're gonna keep up that cadence of drilling across the calendar year 2026. Ah, so we do our next York update I think will be potentially equally impressive, and the market will have more confidence that it's not just a transition from Telfer to Havron, but the maximum value you get on Greatland is when you're running both in parallel. and this is the opportunity, this is just a quick schematic of, HAron itself. Really think about it as 4 quartiles. You've got the two open pits at surface and the 2 undergrounds. Our center of gravity is in that West dome underground. That's where the majority of our ore currently comes from, but we're also operating in underground. That underground there, under the main dome. And that has an underground crusher and hoist with a capacity to do 6 million tons a year. We're only doing about 1.5 million tons out of that underground presently. But we have the opportunity to continue that. We've been drilling out the West dome underground, which you can see is that new area sitting in that bottom left-hand quarter. That's a whole new quartile of the mine that was left untouched for us. It's the highest average grade you've seen at Telfer since 2005. It's just a short 2000 m underground horizontal tram to the underground crusher, to the hoist which has significant capacity that will allow us to probably more than double our underground mining tons. And at higher grade. You add the 4 million tons of Havron development, that that delivers in terms of high grade underground ore. And we pivot to being Western Australia's largest underground miner. With the fourth half of Telfer, it's 2 10 million ton strains, half of Telfer would be Australia's fourth largest processing center fed by high grade underground ore. And this is part of the rejuvenation and rethinking or from first principles of what Telfer can be, where we focus on one train being high grade underground ore at significant volumes coupled with maintaining that, open pit. and you can see we're already investing in the infrastructure driving into that West dome. I think West Dome, because it's already part of the existing infrastructure, potentially beats Havron into the mill. We've already done two drives out there. That bottom green drive effectively is what we'll build in FY 27, that will allow us to kind of haul, straight into that underground crusher, and hoist to surface and, It's part of this ongoing reinvestment in Telfer, and again that free cash flow generation, gives the market confidence that we have the capacity to do so. Havron's really important for us as well. It's part of the rejuvenation of, Telfer. The strongest outcome you get from Greatland is when you run the two in, in parallel. it's a world class asset, and, effectively once that steady state, doing 3.94 million tons a year, 26, 6000 ounces, plus 10,000 tons of, copper, It's very attractive and particularly the oil and sustaining cost we can derive from that. These are the feasibility study numbers from December 2025. If we re-ran that spot price today, their Aussie dollar spot price is north of $7000 those numbers print even better than $10 billion of value, even better than a 31.5% IRR, even better than a 3 year payback. So it's hugely attractive once we get this in place, but you know, that's, we are waiting just to be clear for EPA approval, even though it's a disturbed site and partly built, we now have a final EPA approval that integrates the two. We're very advanced in that process. I think the market expects us to get it this calendar year, ah, which I think is very positive, and again, I think a catalyst for value for Greatland when the market can see there's a direct pathway to, turning on Havron. and, and you know, just more broadly, it just shows what this is, is the combination of Australia's 2nd largest development with Australia's 3rd largest infrastructure capacity on top of what's becoming a very large Telfer. This is a 30 million ounce endowment across the two sites that is globally significant. And Newcrest did a great job at establishing tier one infrastructure here that we can leverage. and then kind of more broadly, you know, we have this high grade development because it is underground, which again is transformational for Telford, that was historically seen as a relatively low grade but good economy of scale. You put high grade through that economy of scale infrastructure and that is transformational. this is kind of what it looks like combined, and as I said, when we did that feasibility study on Hvron, we still hadn't delineated that additional mine life at Telfer, so we did it on a standalone basis. We're still the lowest all in sustaining costs on the ASX when we deliver HAVR. But that was done on a $36 a ton processing cost, we were just putting a very lonely 3.9 million tons through a 20 million ton mill. But when you're running it at 20 million tons per annum, the processing cost is around $18. You grind havevron ore a little bit finer, so let's call it even mid 25s. It's a significant cost saving. You also share overheads, you also share, sustaining capex. We actually think. Havron actually even presents better. In terms of economics, if you are confident that Teler continues to run, and that's why that ongoing investment in the drill bit at Telfer, yields a lot of value. I mentioned Telfa Havron is already a disturbed site. You can see the green development there, we're already about 80% down on the main decline, but then, as part of our expansion, as part of Greatland envisaging this as a bigger asset. As contributing more to ITE for infrastructure, we put in that 2nd, straight line, decline, which runs the conveyor, that allows us to ramp up to 4 million ounces a year. the, the other one I just look, just wanna highlight that chart down the bottom in the bottom left hand corner, it's that free cash generation. A record quarter 260 million in the March quarter, but, you know, the payback we achieved on the acquisition was 5 months. And we continue to see strong free cash flow generation. I just before I finish up though, I might just skip ahead and just also talk about another asset in the portfolio. This is arguably the world's 2nd or 3rd best tungsten deposit, O'Callaghan's. It's just 10 kilometers away from, from Telfer. We think the tungsten market's very strong. And, you know, we have daylighted this by spending the time, energy and effort to make this a jor resource, and I think we've had a number of inbounds inquiries on it, and I think it's another way that we can think about creating shareholder value. whether that means that Greatland has a tungsten, division, Whether it's a spin-off or some other way to create value, but it's something that we are spending time, energy and effort doing. We already have a pretty fantastic organic growth profile, so we're not looking for something else to do, but it's certainly, You know, tungsten's an important part of western supply chain of critical minerals, and this is, A high quality tungsten asset, high grade, high volume in a tier one jurisdiction, next to existing infrastructure. And so with that, I'll I'll I'll conclude that effectively, look, we've got strong existing production, Extending the M life, leveraging our existing infrastructure, and we are well funded. In addition to $1.2 billion in the bank, we have an undrawn $500 million dollar debt facility, which actually gives us $1.7 billion of available funding to deliver that $1.1 billion Hron project, but it's nice to have. It's nice to have the flexibility to pursue these other organic growth profiles, and then finally, that positions us to deliver that growth, both in the drill bit, productivity, but also the reimagining of Telfer as a higher grade, larger asset. I'll open it up for, I think we have time for one question. Yep, we certainly do. Ladies and gentlemen, any questions from the floor, please? So the gentleman in the far corner. Well, that was just amazing. I mean, all good news all around. It's, well done, fantastic. But I looked at the, the price of the stock and it's up at new highs, and you know how savvy investors always want to be able to buy at a lower value or a good value. Are there any challenges ahead that could produce a dip, or is this thing just gonna keep going and what kind of a multiple do you have on your cash flow as a valuation on your stock price? Yeah, look, well, thank you for the precursor to that question, that's very kind of you, but look, I, I think, look, there's no relax, like it's challenging to deliver what we've done, we've bought an asset. An asset that was perceived as being high cost, we're delivering ounces at less than 2200 Australian. So what's that, like 1500 to $1600 US. we want to have an ambitious growth program, a $1.1 billion dollar project spend, you know, that is challenging. we're, we've invested in good people, we think we have good experience to do it, but as I said, there's no relax about delivering a project of that scale. so, overall, like, of course there's challenges, but we think there's, there's catalysts as well. We've bought out that jor resource. I think we come out with the jork reserve update. I think that should be, positive. I think getting EPA approval on Hvron and actually demonstrating visibility and a pathway to adding Hvron into our producing, production profile, ah. I think also with that we we we get to do a FID on that West Dome Underground. As I mentioned briefly, like that is the highest grade ore you've seen at Telfer since 2005. I think that's again, just a tremendous asset to bring into the portfolio, and we're well funded to do these things, so, you know, there, but of course there's challenges, I'd like to think there's not dip, but our progression hasn't been linear. You know, it rarely is, and you know, I'm really grateful for the hard work that our team puts in at Site to continue to let me stand up at the, at the front here and, demonstrate the success that we've had as a team. Sadly we're now out of time, but a great presentation, great to see an old for an Australian great old mine Telfer, still doing very well, very, very strongly. Please join me in thanking Sean for his presentation. Thank you.