Greatland Resources Limited · ASX:GGP
Greatland Resources — Merger or Acquisition (September 2024)
42 slides from Greatland Resources's merger presentation, Sep 13, 2024
Slide 1: Creating a new Australian Gold-Copper Producer
Creating a new Australian Gold-Copper Producer Consolidation of 100% of Havieron and Telfer 13 September 2024
Slide 2: Disclaimer
Disclaimer NOT FOR DISTRIBUTION IN THE UNITED STATES The summary information contained in this document has been provided solely for information purposes and does not purport to be comprehensive or contain all the information that may be required by recipients to evaluate Greatland Gold plc (Greatla
Slide 3: Disclaimer
Disclaimer This presentation also includes non-IFRS financial measures. Due to the forward-looking nature of these measures, no reconciliation of the forward-looking non-IFRS financial measures to the most directly comparable IFRS financial measures is included in this presentation, because, without
Slide 4: Contents
Contents 1. 2. 3. Executive summary Transaction rationale Transaction overview 5 7 16 4. 5. 6. Go forward plan Havieron Telfer 21 24 28 Appendix 1: Greatland Base Case Technical Value (per SRK Competent Person’s Report) Appendix 2: Broader regional opportunities Appendix 3: Executive and Board Team
Slide 5: Executive summary
Executive summary
Slide 6: Executive summary – Transforming potential into value
Executive summary – Transforming potential into value Transformative World class Clear path forward Acquisition gold-copper project Greatland has agreed to acquire the remaining Havieron’s 8.4Moz AuEq Mineral Resource is the Experienced Greatland management and board 70% of Havieron and 100% o
Slide 7: Transaction rationale
Transaction rationale
Slide 8: Havieron and Telfer acquisition
Havieron and Telfer acquisition A compelling acquisition creating a new Australian gold-copper producer Highly accretive acquisition Early cash flow generation Consolidation of mine & infrastructure 1.40x + 425koz gold equivalent (AuEq) production Telfer infrastructure substantially Mineral Resource
Slide 9: Havieron + Telfer – Renewing a major mining complex
Havieron + Telfer – Renewing a major mining complex Havieron project Au Cu Telfer mine Au Cu Mine plan 1 Development 20 years Mine plan 3 Operating 15 months 51 Mt @ 2.74gt/t Au & 0.32% Cu for 3.2g/t AuEq 15-month high confidence Telfer mine plan to produce: ─ 3.9 Moz Au + 139kt Cu for 4.5Moz Au
Slide 10: Havieron is the second largest undeveloped gold project in Australia
Havieron is the second largest undeveloped gold project in Australia Australian Gold Projects – Current Mineral Resource 1 Contained Oz 2 Resource Grade (Moz Au) (g/t AuEq) 12.0 9.0 Havieron Contained Oz (Moz) Contained Oz (Moz) Contained Oz (Moz AuEq) Grade (g/t Au) 10.5 8.0 10.0 8.1 7.0 8.0 6.0 8.
Slide 11: Havieron would become one of Australia's top gold mines
Havieron would become one of Australia’s top gold mines ... ASX listed Australian gold mines – Annual attributable production (koz AuEq) & Milled Head Grade (g/t) 1 Annual recovered AuEq Milled Head Grade production (koz) Upside potential through: (g/t AuEq) 500 koz Havieron mining throughput expa
Slide 12: With lowest quartile cost positioning
With lowest quartile cost positioning … ASX listed Australian gold mines – All-in-sustaining-cost (US$/oz) 1 $4,000/oz Global gold mines AISC (US$/oz) 2 Q1: Q2: Q3: AISC (US$/oz) 3 $3,000/oz US$944/oz US$1,191/oz US$1,412/oz $2,000/oz $2,000/oz $1,000/oz - 1,674 - 1,540 1,555 25% 50% 75% 100% 1,487
Slide 13: Telfer Extension Opportunities
Telfer Extension Opportunities Post Acquisition Completion, Greatland will investigate ore extension opportunities at Telfer including the below, to extend the current Telfer mine plan Main Dome and/or supplement Havieron ore Open Pit Extension Description Opportunity 1 Main Dome West Open Pit 1 Wes
Slide 14: The right team for value creation at Havieron and Telfer
The right team for value creation at Havieron and Telfer Experienced management team… …with a track record of creating value for shareholders… Greatland Years of Employee Prior role Position experience CFO Shaun Day Mark Barnaba Shaun Day CEO 25+ Northern Star 2014 – 2021 2010 - present +1,205%
Slide 15: Strategic rationale - summary
Strategic rationale - summary Highly accretive acquisition for shareholders underpinned by compelling strategic rationale WA 79 Au 29 Cu Gold Copper Havieron Quality Havieron Control Telfer Production Telfer Premium Commodity of Destiny and Upside Infrastructure Jurisdiction Mix Second largest Aus
Slide 16: Transaction overview
Transaction overview
Slide 17: Favourable and balanced financing structure
Favourable and balanced financing structure Bilaterally negotiated transaction with total consideration and loan repayment of up to US$475m (before adjustments), Newmont to become a significant investor in Greatland Acquisition financing structure Equity Raising - Expected timeline Cash from General
Slide 18: Acquisition overview
Acquisition overview Greatland to acquire remaining 70% of the Havieron gold-copper project and 100% of the Telfer gold-copper mine from Newmont pursuant to a Sale and Purchase Agreement (“SPA”) executed Summary on 10 September 2024. Key terms include the below. The Admission Document includes furth
Slide 19: Equity Raising sources and uses
Equity Raising sources and uses Sources of Funds A$m US$m GBP£m 1 Institutional Placement • Fully underwritten 1 Institutional Placement 1 A$488.8m $325.0m £248.6m • Up to US$100m cornerstone support by Wyloo 5 2 Retail Offer 2 A$13.3m $8.8m £6.8m 2 Retail offering Total Sources A$502m $334m £255m •
Slide 20: Greatland pro-forma capital structure post Acquisition Completion
Greatland pro-forma capital structure post Acquisition Completion Greatland expects to be well capitalised post Acquisition Completion with a strong balance sheet and expanded shareholder base with potentially increased investor relevance Greatland GBP / US$ basis Greatland Standalone Adjustments Pr
Slide 21: Go forward plan
Go forward plan
Slide 22: Strategy to develop a generational gold copper mining complex in the Paterson
Strategy to develop a generational gold copper mining complex in the Paterson ‘Operate & Extend Telfer’ ‘Develop & Optimise’ ‘Havieron Production’ ‘Expand’ Objective: Maximise and build free Objective: Develop and optimise Objective: Long term free cash flow Objective: Leverage existing cash flow fr
Slide 23: Post-acquisition pathway
Post-acquisition pathway Post-Acquisition, Greatland has a clear pathway with significant potential value catalysts, both operational and corporate 2024 2025 2026 2027 Completion ASX listing Q4 2024 1 by Jun Q 2 Telfer high confidence 15-month mine plan 3 to produce 426koz AuEq (374koz Au + 13kt Cu)
Slide 24: Havieron
Havieron
Slide 25: Havieron project financing – Syndicated Debt Facilities overview
Havieron project financing – Syndicated Debt Facilities overview Letter of Support (non-legally binding) executed with ANZ, HSBC and ING Bank for A$775m syndicated debt facility Proposed Debt Facilities Debt financing strategy Pathway to finalisation 1. Term Debt Facility: Provides a clear pathway
Slide 26: Havieron Project overview
Havieron Project overview Asset Overview (100% basis) Exceptional Ounce per Vertical Metre profile 10,000 6,000 8,000 2,000 4,000 Compact 650m Location East Pilbara region, Paterson Province, Western Australia, 45km east of Telfer strike length Ownership 100% Greatland post Acquisition (curren
Slide 27: Havieron development and mine plan summary
Havieron development and mine plan summary Havieron Ore Body and Mine Development Schematic Mining throughput 2.8Mtpa Mining / processing inventory 51Mt Avg Grade Processed (g/t Au / Cu %) 2.74 g/t Au / 0.32% Cu Mining / Process Start Date H2 2026 / H2 2027 Surface Mine Life / Processing Period (yrs
Slide 28: Telfer
Telfer
Slide 29: Telfer Working Capital – Syndicated Debt Facility overview
Telfer Working Capital – Syndicated Debt Facility overview Commitment Letter (legally binding) with ANZ, HSBC and ING Bank for A$75m Telfer Working Capital Facility, A$25m Contingent Instrument Facility and associated hedging Debt Facilities Hedging Pathway to finalisation Commitment Letter and de
Slide 30: Telfer Mine overview
Telfer Mine overview Asset Overview (100% basis) Map Location East Pilbara region, Paterson Province, Western Australia Ownership 100% Greatland post Acquisition (currently 100% Newmont) Telfer mining is currently from open pit (truck and shovel) and underground (open stoping) Mine Type Telf
Slide 31: Telfer mine site & key surface infrastructure
Telfer mine site & key surface infrastructure 1 Processing Infrastructure Telfer processing and site infrastructure in place to process Havieron ore Telfer processing plant has a nominal capacity of 20Mtpa across two processing trains of 10Mtpa capacity each Greatland plans to process Havieron o
Slide 32: Telfer current mine plan summary
Telfer current mine plan summary Telfer (current 15-month mine plan) Mining Region Schematic Mining inventory 12.3Mt 21.9Mt 9.6Mt run-of-mine Processing inventory stockpiles 1 (incl. 9.6Mt run-of-mine stockpiles 1) Average Grade Processed (g/t Au / Cu %) 0.68 g/t Au / 0.10% Cu Main Dome Open Pit Mai
Slide 33: Telfer Tailings Storage Facility 8 ('TSF 8')
Telfer Tailings Storage Facility 8 (‘TSF 8’) Remediation of TSF 8 to be completed and processing operations resumed as condition precedent to Acquisition Completion Situation Investigation and remediation In Dec 2023, cracking and sinkholes were observed on the embankment wall between Newmont and
Slide 34: Telfer Tailings Storage Facility 7 ('TSF 7')
Telfer Tailings Storage Facility 7 (‘TSF 7’) Initial remediation complete following seepage and sinkhole observed in April 2024. Further remediation planning underway to ensure affected areas are safe, stable and secure from an engineering and environmental perspective, with the costs paid by Newmon
Slide 35: Enlarged Greatland Paterson exploration portfolio
Enlarged Greatland Paterson exploration portfolio Post-Acquisition enlarged Greatland has interests in ~ 3,800km² of tenure 1 in the highly prospective Paterson Province within 60km of Telfer Legend Greatland Wholly Owned Pro-Forma Greatland Interest Telfer in the Paterson Region Area (km2) (100% ba
Slide 36: Telfer infrastructure enables Paterson regional 'hub and spoke' model
Telfer infrastructure enables Paterson regional ‘hub and spoke’ model Telfer is one of the largest processing facilities in Australia and the only one operating in the Telfer production Paterson region, enabling the pursuit of (22Mt, 15-month mine plan) accretive regional opportunities. Two 10Mtpa t
Slide 37: Appendices
Appendices
Slide 38: Base Case Technical Value of Telfer & Havieron (per SRK Competent Persons Report)
Base Case Technical Value of Telfer & Havieron (per SRK Competent Persons Report) SRK’s Technical value for Telfer and Havieron indicates significant value from the integrated project using conservative assumptions without considering upside opportunities Technical Value Summary of Mineral Assets (A
Slide 39: Broader regional opportunities (beyond Paterson Province)
Broader regional opportunities (beyond Paterson Province) Active exploration campaign beyond the Paterson Province with untested prospective greenstone belt at Ernest Giles, Panorama and Mt Egerton Land Size Project Area Mineral Deposit Description (km2)(1) • Located approximately 250km north-east o
Slide 40: Executive team Board of directors
Executive team Board of directors Shaun Day Mark Barnaba Managing Director Non-Executive Chairman Mining and infrastructure focused finance executive Deputy Chairman of Fortescue Metals Group Previously CFO of Northern Star Resources, Sakari Resources and Straits Resources Previously Board M
Slide 41: Mineral Resource & Ore Reserve statement
Mineral Resource & Ore Reserve statement Table 1: Greatland Havieron December 2023 Mineral Resource estimate(1), (2), (5), (6) Table 2: Greatland Havieron March 2022 Ore Reserve estimate(2), (3), (4) Tonnage Grade Metal content AuEq Metal(5) Tonnage Grade Metal content AuEq Metal(3) Domain Classific
Slide 42: For further information
For further information info@greatlandgold.com https://greatlandgold.com
Greatland Resources — Merger or Acquisition (September 2024) on 6ix