Daylesford24 May 2022 14:21
AB deserves a lot of credit for this. The advice was not apply for this license. There are areas that were and are sensitive around Daylesford. If you look on GEO VIC, you will see that there are areas which were excised from the license application and that is why they have had the license awarded. If that land had been left in, they wouldn't have received the license award.
It may be that the market doesn't appreciate what has happened but the relevant people in Australia will and that is what matters. NBGC has now added some highly prospective ground with historically very good grades. If they can prove that ground up at around 5/6 g/t, they have got a license worth a lot of money.
The issue on the IPO was do you go before you get the best license or do you wait? Well they decided to wait and the license has arrived. It may be that on a 3 year view, they can bring this into production.
The issue with the other licenses would have been smaller discoveries which add up to something significant but the need for a centralised processing plant. This license should be good enough to stand alone.
So they have lots of exploration upside, something that they can bring into production on maybe a 3 year view and what they now need to add in is something they can bring into production on a shorter timescale. If they can do that then they have all the bases covered.
WA needs sorting, those two license applications don't fit.
So it looks to me that pretty soon that they can present a full package to a buyer or for an IPO. I can't see it being AIM at the moment and so it is likely going to be ASX.
I suspect the IPO would be October time if they get their collective finger out. Typically things slip and so it could be November.
It could be that someone comes in and wants to do a deal and reverse the package into their existing portfolio. So it might end up not being an IPO. The issue would be, whose paper would you be willing to take? I am not sure that there is anyone operating in Australia where you would want to take their paper: maybe GGP?
DYOR
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