AGM30 Jul 2023 16:37
I was at the AGM on Friday, and also at last year's.
BUSHRANGER
It was clear Colin was disappointed with 1.3mt, but also confirmed that it's the biggest discovery in the Lachlan Fold in the last 20-30 years.
Colin stated he felt it was a Tier two project.
He stated that the open pit at Bushranger with the 'high grade stuff ' could work for 6-9 years and doesn't benefit from pre -sorting.
Colin said the pre -sorting could be tweaked, mentioned other methods.
He felt that half million tonne operations would be highly sought after.
It was clear to me that there would be no more drilling.
Colin stated that 3 other Companies were looking at Bushranger, but he didn't state whether this was pre xtract purchasing or post purchase.
Colin discussed at length how AA could make life difficult with the contract in place, but also stated why would they, what would they have to gain. They may want a royalty uplift to let xtract free of contract, but he doesn't know until he gets in conversation with them.
Colin spoke about 'Blue Sky ' projects and at the same time acknowledged that all in the room were probably looking for a ten bagger when investing. My interpretation from that was Colin sees a Blue sky project as a potential ten bagger. I could be wrong.
For the past two years I've let my optimism over Bushranger get ahead of me, so initially felt disappointed at the meeting, but on reflection and talking to others who attended, am optimistic that Bushranger can be monitised at a decent price. I'm not prepared to speculate on a forum as to what price can be achieved.
MANICA
Production running at c62kg per month, could be higher in July. Plant needs upgrading to take sulphides over the next few years.Plan in place so no disruption when Oxides exhausted.
If xtract put in capital, CB would want to negotiate better terms of revenue take. If xtract don't get opportunity to put money into the plant upgrade then current deal of 23% remains.
Still 1.1million ounces of gold in the ground. Source of gold still not found.
Plenty of opportunity. Colin mentioned five million profit per annum (I assume he meant dollars).
KAKUYU
2-3 kilometers of strike.
Needs to be drilled.
Copper mine 6-8 months.
BLUE SKY
2 projects in Zambia. Clearly Colin likes Zambia. Challenged on how we would buy assets. Answer, from income, but may need some initial capital, I didn't hear a number mentioned.
This is all as I heard it and having had the benefit of making notes.
Others clearly have different opinions on what was said.