Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:08 All right. Hello, everyone, and welcome to Serama Resources live summit today, hosted by 6. Today's a little bit of a different format than the usual presentation. Today, Serama Resources President and CEO, Andrew Dining, will present 5 reasons why Serama listed on the ASX in about 10 minutes. So it's going to be a little bit quick, but then we are going to open up the floor to a live Q&A. So if you do have any questions, of course, feel free to submit them at any time during the presentation and we'll try to get to them afterwards. And as always, this is being recorded and
0:39 available to watch again on SIX.com. So Andrew, welcome. How are you? Hi, Dasha. I'm very well, thank you. And you?
0:48 Pretty good. Happy to have you. I'm going to hand it over to you to present the 5 reasons why SRAMA listed on the ASX. And I'm going to come back on for some Q&A. No worries. Okay, Thanks, Dasha. Okay, I guess first thing to pick up from Dasha's kind introduction, and welcome to everybody listening. The ASX listing is a secondary listing in Australia. So our primary listing will remain the TSX-V. I think that's important for North American investors to understand that. So the listing in Australia will be a CDI, which is basically a chess deposit instrument or a derivative. They'll be fully fungible with twin exchanges. So I think at the end of the day, money will chase the liquidity.
1:35 Sarama is a Perth based company and it always has been. So I guess that does beg the question is, you know, why are we listed on the TSX in the first place? I I think probably the key driver for that is that it's a legacy from when I ran Moto Gold Mines in the DRC. Moto is a TSX listed company. It was very successful. We were bought out by Redback Mining and ultimately Rangold acquired the asset after Redback put us into play. That then became the Kibale project and did about 800,000 ounces last year. So that's why we look toward the TSX as our initial listing. The initial seed for Cerama came out of North America. We listed there in the back end of 2011. And at that point, the TSX was fairly agnostic, what jurisdictions companies worked in and where they were based. So I guess if you roll that forward to now and you say why the ASX?
2:36 I think if we go back to my earlier point which is you know board and management are predominantly Australian based in Perth. You know Perth is a real centre for mining and there's a lot of African mining skills here, so it's a natural place to be based. We did do a pivot with the board about 18 months ago and brought on a couple more Perth-based directors so that we had the whole executive in 1 spot to facilitate management of the business. So I think one of the things we've seen over the last couple of years is, operating in international jurisdictions when travel's been pretty much non-existing or very difficult to undertake from Australia. You know, from a practical logistical point of view, it's been very difficult to service the North American market as well as UK and Europe. So I think from our point of view, that's it's been very difficult. It hasn't helped the company a lot, not being able to meet with North American analysts and brokers and shareholders.
3:38 So I think that's contributed quite a bit to our thinking and push us forward to make this move. I think we've also seen over time that the TSX, since we listed, has become a little more focused on jurisdictions that sit within Canada's time zone. So pretty much North, South and Central America, and a little bit more discerning, I guess, once you see outside that. We do like, you know, the TSX as an exchange, it has a lot of depth, you know, and when it's running hot, it runs really well. So, you know, we're happy with the TSX, but we do see the ASX listing as being very complimentary and something that's easier for us to manage.
4:25 And also for Australian based explorers, West Africa is a very well-trodden pathway. So there's a lot of appreciation in the market in Australia of the jurisdictions where we work. There's been quite a lot of successful companies there so most recently we're seeing West African resources spring online. There's some Brattomine, which has just put out some excellent results. I think quarterly announced this last year and all in sustaining costs around 700 or 750 bucks an ounce. So the Australian investors in APAC really are, I guess, used to those jurisdictions. You're seeing Perseus getting a very solid bid these days. There's a man in West Africa and Teedo's bringing on a new mine in Ivory Coast.
5:13 You have Predictive with a new discovery in Guinea And obviously us coming into the exchange has got a lot of attention. The IPO on the ASX was significantly oversubscribed and the book was opened and shut in fairly short order and probably oversubscribed by 25, 30% or more. So we're very happy that's an outcome, but I think the Australian and Perth brokers in particular have enjoyed a lot of success backing companies into particularly West Africa. So when we speak to them and for me that's now a 10 minute walk instead of a two-day flight to get to see them. We get face-to-face opportunity to sit through and talk about the business opportunity that we present for investors.
6:04 So I think there's a number of different areas. There's a practical and logistical point of view, being in a market that's comfortable with the jurisdiction where we operate, and just following a path that's well-trodden by previous Australian explorers. So, the other main reasons for us looking to list on the ASX. We like the TSX, it's been very supportive, but we do think that the ASX listing will help us over the longer term. So, Pretty much it, thanks, Dasha, and I'll take it for questions now. All right, thank you so much. So now we are going to open the floor up to some questions. So if you do have any, then now's your chance to ask them. We do have one. Will the new listing speed up the drilling campaign at Centura? Yeah.
6:51 One of the purposes of the ASX listing was to reload treasury. So we've raised $8 million through the ASX listing. So once that's completed, so basically we're going through ASX approvals now, we expect that probably later on this month,
7:11 that money will hit the treasury before the end of April, but we've already mobilised the time into the field in Burkina Faso and the drilling's initial works already started. We've already got a few metres on the board. So it has facilitated us to get back into it and we'll jam as much in as we can this season, which probably runs from now through until end of June, July. Thank you. Richard's asking, obviously there's a lot of talk about the dual listing on the ASX but what about obtaining a US listing such as the OTC, QB or QX?
7:49 Yeah I think it's an interesting question that's come up a few times. I think, you know, one of the points I gave for listing on the ASX was logistics and the ability to properly service the market. I think one of the things we do know is most of the sophisticated investors in North America have the ability to trade whatever exchange they want. I think we can't get too distracted on being listed on too many exchanges and servicing the markets properly. So North America is still very important to us. I kind of suspect the US is probably more so than Canada, to be honest. We've enjoyed a lot of success there, But I think for us, OTC short term wouldn't really be on the radar, maybe further down the track. But I think at the moment for us, it's really bed down the ASX listing and focus on APAC, which does have an appetite for gold and does have an appetite for West Africa.
8:46 Okay, actually a question about that. Will you pivot to Asia Pacific for promotion?
8:53 Yes, that's another interesting question. Given service in the capital markets falls to me. I think kind of shorter term, the APAC, I think it's important that we do service that. And it's going to be obviously much easier for us because Hong Kong, Singapore sits in the same time zone as Perth. And it's also relatively a short flight. You know, It's only 5 hours to Singapore and 8 hours to Hong Kong. So for me, that's a bit of a dream. And then obviously East Coast, Australia, you know, Sydney and Melbourne are the main financial centres in that direction. So I think for us, you know, APAC will get a fair bit of attention, but we'll be splitting our time between APAC and North America and London, Europe. So it is a business that cuts across multiple jurisdictions.
9:44 Money is fairly discerning on where it likes to go. And we find, you know, Europeans and London, they're quite comfortable in West Africa, North America, you know, have a lot of other things to distract them, you know, whether it's crypto, whether it's North or South American jurisdictions. So I think it's a long answer to a quick question, but APAC's probably going to be more important to us than what it was before. Great, thank you. We have a question. Why do you think Australians seem to have a better understanding of the risk and reward in junior mining?
10:18 Yeah, I think Australia is, I think there's a far greater depth in understanding in mining in Australia. If you live in Perth, you know the whole economy in Western Australia is dominated by mining. It's probably the only city I go to where in the evening news they have the price of iron ore, the price of gold, the price of oil, all your commodities. So I think people understand it. I think the Australian market probably is less sophisticated than North America so we don't have the level of derivatives, you don't have you know just you know far less distractions like crypto and weed in the market as well. But I think you know Australia is a resource-based economy and I think people are more familiar with it. So when I look at the spread of names from the ASX listing, it's quite interesting. There's not a couple of big funds coming in and hitting it out of the park. It's this big spread of high net, you know, individuals that have put in anywhere from 20 grand to 900 grand.
11:24 So, and a lot of that money's been made on previous resource deals. So either work in the industry or they've made a lot of money off the industry. And I think,
11:38 you know, that Australians have been working in Africa for probably the last part of 30 years. So there's a fair depth of knowledge of the, I guess, the idiosyncrasies of working in that part of the world and the risks that come along with it. But I think people have also enjoyed quite a lot of success along the way as well. Great, thank you. Our last question here is, are you attending any conferences or doing any promotion? Yep. I'll be at Indaba in Cape Town in May. And there's a sister event within Indaba called 1 to 1, which is effectively a face-to-face conference. That'll be the first one I've done for best part of 18 months. And I will also be attending the precious metals conference in Beaver Creek. So
12:26 that's typically very well attended by people that you know knowledgeable in the space where we operate. So I very much look forward to that between precious metals and Denver Gold Show to catch up with a lot of people for some time there. Yep, absolutely. All right, well, thank you so much, Andrew, for taking us through that presentation and obviously the Q&A. Also, thank you for everyone who attended and asked questions. Feel free, if you have questions afterwards, to reach out directly to Serama Resources and they'll be happy to follow up with you. There is also more information on their website, seramaresources.com. And again, this has been recorded, so you can always watch it on six.com afterwards. I'll throw it back to you, Andrew, if you have any final words and then we'll close up. Okay, thanks, Dasha. Yeah, I guess my final words is that, we're looking forward very much to getting the ISX listing done, getting our first lot of drill results in.
13:21 We've got a 50,000 metre drill programme that we've effectively commenced last week. So we should have good news flow over the next kind of 6 to 12 months from that drilling. It's very targeted, it's shallow oxide focused. So yeah, we look forward to getting out there and getting active, which for the last couple of years have been slowed up by circumstances outside our control, but it's pretty exciting to actually get back out into the field and get something happening. So we look forward to it.
