Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Summary, including over-subscribed fundraise post year-end.
Sharecast News) - Amaroq Minerals reported a robust liquidity position in its full-year results on Tuesday, with group liquidity reaching CAD 78.2m (£45.62m) as of 31 December.
The AIM-traded firm said its gold business exhibited working capital of CAD 37.6m, while the strategic minerals business showcased available liquidity of CAD 18.7m.
It said it achieved significant milestones in the year, including the successful transfer of its Icelandic listing to the Iceland Nasdaq Main Market and admission to the OMX Iceland 15 Index.
Moreover, Amaroq expanded its licence holdings in South Greenland, and made notable discoveries, particularly in nickel-copper at Stendalen.
In the fourth quarter, operational highlights encompassed advancing contracting, procurement, engineering, construction, and mining activities.
Notably, 80% of key contracts for the processing plant were concluded, and procurement was 80% completed.
Construction efforts included expanding the camp accommodation capacity and progressing the processing plant construction.
Mining activities focussed on rehabilitation works, laying the foundation for trial mining expected to start in the first quarter or early in the second quarter of this year.
Looking ahead to 2024, Amaroq's outlook included progressing permitting, engineering, contracting, construction, mining, and exploration activities.
Notably, the company said it anticipated completing engineering for the processing plant in the second quarter, and concluding remaining contracts by the same period.
Construction milestones included starting steel structure erection for the process plant building and initiating the installation of mechanical and electrical components in the second half of 2024.
Mining efforts would continue with the rehabilitation of mine infrastructure and the development of ramps to facilitate future mining activities, with the aim of achieving first gold production in 2024.
Additionally, Amaroq said it was planning to enhance support infrastructure to accommodate up to 120 personnel and continue exploration activities focused on extending existing blocks and delineating new discoveries.
"Following our successful Fundraising in February 2024, we have increased the scope of the Nalunaq gold project development to account for accelerating the transition of the process plant to nameplate capacity of 300 tonnes per day," said chief executive officer Eldur Olafsson.
"We experienced some operational and procurement delays towards the end of 2023 due to adverse weather conditions, which continued into the start of 2024.
"This situation has now significantly improved and we are making good operational progress."
It’s in nobody’s interests to hold out for deals that don’t float. Mr. Day has been plain publicly on his intent, at one time offering more than independent valuation for 5% Hav, and the plan to bring it into FCF was to use Telfer. And Newmont want rid.
A deal will likely be done with somebody or somebodies including Ggp encompassing Telfer and Hav.
They start again at the table.
I remain unsure of the requirement around ROLR on other than a cash offer. I do not think, on what I have read, that Ggp’s access to Telfer is guaranteed by the Newcrest JV. Or that tolling fees are agreed. Just the context within which it was intended to negotiate them.
Plainly any partnership arrangement will see all ore going to Telfer.
It’ll all be aired during discussions, with the possibility of side deals and assurances to secure mutual advantages, on the state of play as it exists now.
I continue to think Newmont will prefer cash on the nail, to satisfy promulgated promises to their own shareholders.
It would, I think, be a difficult balancing act to mine Telfer at a profit, without further capex, and dependent upon the price at which Ggp may be required to hedge it’s gold output from the mines, and in accordance with any lender requirement.
The JV, what we know of it, refers to intention to process at Telfer, and intention to negotiate tolling fees. As I see it, Ggp’s main priority must be to secure ongoing access at least to the facilities. I think that remains pretty much a certainty in the end. Without it, there will be no near-term benefit from Havieron for anybody at all.
Just considering the basics of Ggp continuing with its original solid plan as with Newcrest, is all, with which people were generally content before Newmont turned up.
‘ This water management has indicated potential for greater volumes of water to be managed at surface than originally modelled’
In the absence of anything else, it seems to me that is where the challenge is currently perceived to be.
I think it’s quite simple. Punters agree with this board there’s a very real possibility of a fundraise coming, potentially in excess of the Ggp market cap, or more.
Whether they will be proved right or wrong to fear for the value of their shares pending FCF and accretion is another matter.
It’s a cautious view, awaiting clarification.
Aquifer apart, I think this older RNS pretty much summarises where they’re at, with ASX for opportunity and so on.
https://www.londonstockexchange.com/news-article/GGP/corporate-update/16123792
On funding, they have the general standby debt facility to add to the banks’ Havieron facility (subject to FS criteria )
“In September 2023, Greatland entered into a A$50 million (approx. £26 million) unsecured standby debt facility with cornerstone shareholder Wyloo Consolidated Investments Pty Ltd (Wyloo), providing additional flexibility for Greatland's funding requirements through 2024. Wyloo currently holds approximately 8.5% of Greatland shares.”
They will undoubtedly have looked ahead to balance the books, dependent upon whatever way the Newmont divestiture goes.
I think Newmont are more likely to be looking for cash inflows if they can, to keep their promises to their own shareholders.
Reading the official releases, I don’t think the ASX is ‘on ice’ or delayed as such. It’s waiting for the ‘appropriate time’. With its further source of capital pools, you may consider an ‘appropriate time’ may be approaching, subject to any change that may be required to satisfy listing criteria.