Greatland Gold plc (AIM: GGP)

E: [email protected]

W: http://greatlandgold.com

: twitter.com/greatlandgold

4 March 2025                                                          

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATIONS.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Greatland Gold plc (AIM:GGP) ("Greatland" or the "Company") is pleased to announce its interim results for the six months ended 31 December 2024.

Highlights:

Transformational acquisition of 100% of Havieron and Telfer

·      Completed acquisition for 100% ownership of the Havieron gold-copper project (Havieron), the Telfer gold-copper mine (Telfer), and other related assets in the Paterson region from Newmont Corporation (NYSE:NEM) (Newmont) (the Havieron-Telfer Acquisition)

·      At Completion on 4 December 2024 paid the following acquisition consideration to Newmont:

o  US$167.0 million cash (after estimated purchase price adjustments;

o  US$167.5 million in the form of 2,669,182,291 Greatland ordinary shares issued to Newmont, representing 20.4% of Greatland shares on issue; and

o  Repaid debt of US$52.4 million (£41.4 million), being the entire outstanding balance of the Havieron joint venture loan to Newmont, which has been terminated.

·      Greatland expects to pay the following amounts to Newmont on a deferred basis:

o  A$32.6 million (£16.6 million) in aggregate estimated purchase price adjustments; and

o  Up to a maximum of US$100 million (£79.0 million) in deferred cash consideration which may be payable to Newmont on the first five years' Havieron gold production, through a 50% price upside participation by Newmont above a US$1,850/oz hurdle gold price, subject to an annual cap of US$50 million and aggregate cap of US$100 million.

·      Raised US$334 million (c. £255.3 million) through an oversubscribed Institutional Placing and Retail Offer

·      Havieron is a world class gold-copper project with a Mineral Resource estimate of 8.4Moz gold equivalent, while Telfer is an operating gold-copper mine generating near-term cash flow

·      Acquisition unlocks opportunity to optimise an integrated Telfer-Havieron mining and processing operation

Telfer

·      Strong start to production at Telfer during the period of Greatland's ownership from 4 December to 31 December 2024 (approximately 27 days):

o  29,864oz of gold and 1,189t of copper (33,882oz gold equivalent)

o  1,466kt of ore was processed, utilising both processing trains, with an average grade of 0.77g/t Au and 0.11% copper, and recoveries of 82% for gold and 72% for copper

o  639kt of ore was mined at the Telfer West Dome open pit (total material mined of 1,177t) and 95kt of ore was mined at the Telfer underground

·      Stockpiles as at 31 December 2024:

o  10.9Mt run-of-mine (ROM) stockpiles, containing 247koz gold and 7.6kt copper; and

o  24.5Mt low grade stockpiles, containing 262koz gold and 12.2kt copper.

·      In January 2025, recorded maiden concentrate shipment with proceeds from the sale received of £48.0 million

Havieron

·      In September 2024, in connection with the Havieron-Telfer acquisition, Greatland published an independently reviewed 'base case' development and mine plan for Havieron:

o  Havieron to operate with a steady state mining throughput rate of 2.8Mtpa and average grade processed of 2.74g/t Au and 0.32% Cu;

o  Havieron to produce on average 221koz Au and 8kt Cu (258koz AuEq) annually during steady state operations, for the first 15 years, at an AISC of US$818/oz (A$1,240/oz);

o  A steady state operational period of 15 years and total mine life of 20 years; and

o  First ore production from Havieron in H2 2026 and first gold in H2 2027.

·      During the December 2024 quarter, key activities concerning Greatland's Feasibility Study works were progressed and the Greatland Feasibility Study is being targeted for completion in H2 2025

Financial

·      Closing cash position of £71.9 million (30 June 2024: £4.8 million)

·      Nil debt balance (30 June 2024: £41.5 million)

·      Net assets of £491.5 million (30 June 2024: £41.0 million)

·      On 3 December 2024, executed a A$100m Syndicated Facility Agreement with ANZ, HSBC and ING comprising a A$75 million (c.£37.5 million) Working Capital Facility and A$25 million (c.£12.5 million) Contingent Instrument Facility

Strengthened Position

·      Transitioned into a significant Australian gold and copper producer with near-term opportunities to extend Telfer mine life

·      Owns 100% of Australia's second-largest gold-copper development project at Havieron

·      Owns the only operating processing plant in the Paterson region, with a highly prospective regional exploration portfolio

Greatland Managing Director, Shaun Day, commented:

"It has been a transformative period for Greatland, having completed the consolidation of 100% ownership of Havieron and Telfer, establishing us as a gold-copper producer of significance. We are delighted with the strong start to production in December and the combination of a high Australian dollar gold price, very substantial mined stockpiles at surface, Telfer mine life extension targets, and the approaching development of the world class Havieron gold-copper asset presents a unique opportunity for near-term cashflow and medium-term growth. We continue to advance the Havieron Feasibility Study, expected to be completed in the second half of 2025, with development now substantially derisked by our ownership of the Telfer infrastructure.

"Greatland today is the owner and operator of a processing plant that ranks as Australia's third largest gold-copper processing plant by capacity, with a generational opportunity presented by Havieron and a highly prospective exploration portfolio. Our robust cash position and banking facilities ensures sufficient liquidity is in place.

"Preparations for our ASX cross listing are well underway and we continue to target listing in the June 2025 quarter.  As a significant Australian gold-copper producer, the ASX listing is intended to provide benefits including an enhanced capital markets profile and increased institutional ownership and index participation."

Contact

For further information, please contact:

Greatland Gold plc

Shaun Day, Managing Director  |  [email protected]

Nominated Advisor

SPARK Advisory Partners

Andrew Emmott / James Keeshan / Neil Baldwin  |  +44 203 368 3550

Corporate Brokers

Canaccord Genuity  |  James Asensio / George Grainger  |  +44 207 523 8000

SI Capital Limited  |  Nick Emerson / Sam Lomanto  |  +44 148 341 3500

Media Relations

UK - Gracechurch Group  | Harry Chathli / Alexis Gore / Henry Gamble  |  +44 204 582 3500

Australia - Fivemark Partners  |  Michael Vaughan  |  +61 422 602 720

About Greatland

Greatland is a gold and copper mining company listed on the London Stock Exchange's AIM Market (LSE:GGP) and operates its business from Western Australia.

The Greatland portfolio includes the 100% owned Telfer gold-copper mine, the adjacent 100% owned world class Havieron gold-copper project (under development), and a significant exploration portfolio within the surrounding region. The combination of Telfer and Havieron provides for a substantial and long life gold-copper operation in the Paterson Province of Western Australia.

Greatland is targeting a cross listing on the ASX in the June quarter 2025.

Principal activities

The principal activities of the Group during the period consisted of gold and copper mining and production, project development, and the exploration and evaluation of mineral tenements in Western Australia.

Review of half-year results (unaudited)

On 4 December 2024, Greatland completed the acquisition of 70% ownership interest in the Havieron gold-copper project (consolidating Greatland's ownership of Havieron to 100%), 100% ownership of the Telfer gold-copper mine, and other related interests in assets in the Paterson region from certain Newmont Corporation subsidiaries.

Production and sales for the period reflect Greatland's ownership of Telfer in the 27 days of ownership from 4 December to 31 December 2024:

Financial Position

§ Closing cash position of £71.9 million (30 June 2024: £4.8 million)

§ Nil debt balance (30 June 2024: £41.5 million)

§ Net assets of £491.5 million (30 June 2024: £41.0 million)

HEALTH, SAFETY AND WELLBEING

Greatland's most important priority is safety, keeping our employees, contractors and communities safe and well. Our goal is to operate with zero fatalities, minimise workplace injuries and prevent catastrophic events. Greatland achieved its goal of maintaining a safe workplace for all during the half year. There were no fatalities at the Group's projects during the half year ended 31 December 2024 (31 December 2023: nil).

CORPORATE

Havieron-Telfer Acquisition

Greatland announced on 10 September 2024 that it had entered into a binding agreement with certain Newmont Corporation subsidiaries (Newmont) to acquire Newmont's 70% ownership interest in the Havieron gold-copper project (Havieron), 100% ownership of the Telfer gold-copper mine, and other related interests in assets in the Paterson region.

Greatland completed the Havieron-Telfer Acquisition from Newmont on 4 December 2024 (Completion).

In connection with the Havieron-Telfer Acquisition, a fully underwritten institutional placing to raise US$325 million (c. £248.6 million) (Institutional Placing) and retail offer to raise US$8.8 million (c. £6.7 million) (Retail Offer), including commitments of £0.3 million by certain Directors, was completed both gross before associated fees. The Institutional Placing was oversubscribed and successfully closed on 11 September 2024, and the Retail Offer was oversubscribed and successfully closed on 12 September 2024. On 30 September 2024, a general meeting of shareholders approved the Havieron-Telfer Acquisition and the issue of shares under the Institutional Placing, the Retail Offer, and to a subsidiary of Newmont Corporation pursuant to the Havieron-Telfer Acquisition. 

On 1 October 2024, the new Greatland ordinary shares were issued under the Institutional Placing and Retail Offer and admitted to trading, comprising 5,179,010,416 Institutional Placing shares and 140,725,613 Retail Offer shares.

On Completion, trading in Greatland's ordinary shares on AIM was simultaneously cancelled and readmitted (Admission).  Following Admission, Greatland's issued share capital comprises 13,079,294,602 ordinary shares each with one voting right per share.  There are no shares held in treasury.

At Completion Greatland paid the upfront cash consideration of US$167.0 million (£130.2 million) (comprising of US$155.1 million cash consideration and estimated purchase price adjustments) and US$167.5 million consideration in the form of 2,669,182,291 Greatland ordinary shares issued to Newmont based on the issue price of the Institutional Placing (announced simultaneously with the binding Sale and Purchase Agreement), representing 20.4% of Greatland shares on issue. The fair value of the shares issued at Completion was £200.2 million based on the share price on 4 December 2024.

Pursuant to the Havieron-Telfer Acquisition agreement, the amount of the purchase price adjustments has been estimated for the purposes of the adjustments paid on Completion.  A final adjustment will be calculated and made following the preparation and agreement of a final post-completion statement, with the final adjustment expected to be agreed by June 2025.

At Completion Greatland repaid debt of US$52.4 million (£41.4 million), being the entire outstanding balance of the Havieron joint venture loan to Newmont, which has been terminated.

Greatland expects to pay the following amounts to Newmont on a deferred basis:

§ A$32.6 million (£16.6 million) in aggregate estimated purchase price adjustments for:

(i) ore mined and stockpiled between 1 October 2024 and Completion and acquired by Greatland at Completion, due by 3 June 2025;

(ii) to compensate Newmont for running only one of the two Telfer processing trains from 27 October 2024 until Completion (thus preserving ore and stockpiles for Greatland to process after Completion), due by 3 June 2025;

(iii) final purchase price adjustments per the Sale and Purchase Agreement; and

§ Up to a maximum of US$100 million (£79.0 million) in deferred cash consideration which may be payable to Newmont on the first five years' Havieron gold production, through a 50% price upside participation by Newmont above a US$1,850/oz hurdle gold price, subject to an annual cap of US$50 million and aggregate cap of US$100 million. The fair value of the deferred consideration has been estimated at US$64.2 million (£50.7 million).

Debt facilities

On 10 September 2024 Greatland Pty Ltd executed:

§ A commitment letter with ANZ, HSBC and ING (together, the Banking Syndicate) in respect of a A$75 million (£38 million) working capital facility (Working Capital Facility) and a A$25 million (£13 million) contingent instrument facility (Contingent Instrument Facility); and 

§ A non-binding letter of support with the Banking Syndicate, in respect of A$775 million (£395 million) in proposed banking facilities, including A$750 million (£383 million) in facilities that would be available to fund capital to complete the planned development of the Havieron project.

On 3 December 2024 Greatland executed the facility agreement with the Banks in respect of the Working Capital Facility and Contingent Instrument Facility. At 31 December 2024, the Working Capital Facility remained undrawn and A$9 million (£5 million) remained available under the Contingent Instrument Facility.

During the December 2024 quarter Greatland purchased AUD denominated gold put options for a premium of A$9.9m (£4.9 million) from the Banking Syndicate in respect of 150,000oz of gold, with an average strike price of A$3,905 per ounce and a series of expiry dates through calendar year 2025 (CY25), as follows:

The put options establish a price level at which Greatland has the right, but not the obligation, to sell gold, therefore providing a minimum downside price protection for the protected ounces while retaining full upside exposure to the gold price across 100% of Telfer production volumes.

In September 2023 Greatland entered into a A$50 million (£26.0 million) working capital facility with cornerstone shareholder, Wyloo Consolidated Investments Pty Ltd.  During the period A$7 million (£3.6 million) was drawn down under the facility, and then subsequently repaid from the proceeds of the equity raising described above and the facility terminated.

Dividends

The Board of directors has not declared a dividend for the period (31 December 2023: Nil).

OPERATIONAL AND FINANCIAL REVIEW

Telfer, Western Australia (Greatland: 100%)

Greatland acquired 100% ownership of Telfer from Newmont on 4 December 2024, on Completion of the Havieron-Telfer Acquisition. 

During the period of Greatland's ownership from 4 December 2024 to 31 December 2024 (approximately 27 days):

§ 29,864oz of gold and 1,189t of copper (33,882oz gold equivalent¹) was produced at Telfer;

§ 1,466kt of ore was processed at Telfer, utilising both processing trains, with an average grade of 0.77g/t Au and 0.11% copper, and recoveries of 82% for gold and 72% for copper;

§ 639kt of ore was mined at the Telfer West Dome open pit (total material movement mined of 1,177t) and 95kt of ore was mined at the Telfer underground.

¹ The gold equivalent (AuEq) for Telfer December 2024 production is calculated based on average daily commodity spot prices for the period between 4 December 2024 (Acquisition completion date) and 31 December 2024 of A$4,179/oz Au and A$14,122/t Cu. The gold equivalent formula is AuEq oz = Au oz produced + (Cu t produced * Copper Price / Gold Price). AuEq oz is stated before payability reductions for treatment and refining charges.

At 31 December 2024, estimated stockpiles at Telfer were:

§ 10.9Mt run-of-mine (ROM) stockpiles, containing 247koz gold and 7.6kt copper; and

§ 24.5Mt low grade stockpiles, containing 262koz gold and 12.2kt copper.

Significant evaluations commenced during December 2024 to progress Telfer mine life extension opportunities. This has confirmed near term extension opportunities at the West Dome Open Pit in both Stage 7 and Stage 8 extension. These cutbacks have been prioritised for final evaluation works to enable a final investment decision in FY25. In addition, a comprehensive review of all near-mine drilling priorities was initiated in December 2024. This review has identified multiple drilling targets that will be evaluated as part of the drilling budget process.

Havieron, Western Australia (Greatland: 100%)

² The gold equivalent (AuEq) is based on assumed prices of US$1,700/oz Au and US$3.75/lb Cu for Mineral Resource and metallurgical recoveries based on block metal grade, reporting approximately at 87% for Au and 87% for Cu which in both cases equates to a formula of approximately AuEq = Au (g/t) + 1.6 Cu (%). It is the company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.

On 10 September 2024, in connection with the Havieron-Telfer acquisition, Greatland published an independently reviewed 'base case' development and mine plan for Havieron, which is for:

§ Havieron to operate with a steady state mining throughput rate of 2.8Mtpa and average grade processed of 2.74g/t Au and 0.32% Cu;

§ Havieron ore to be processed through the Telfer processing facility, with utilisation of a single processing train through Telfer's Train 1 circuit at 750t/h, on a campaign basis at approximately 50% utilisation;

§ Havieron to produce on average 221koz Au and 8kt Cu (258koz AuEq) annually during steady state operations, first 15 years, at an AISC of US$818/oz (A$1,240/oz);

§ a steady state operational period of 15 years and total mine life of 20 years; and

§ first ore production from Havieron in H2 2026 and first gold in H2 2027.

The Greatland Feasibility Study for the completion of Havieron's development is underway and targeted to be completed in H2 2025.  The Feasibility Study will seek to refine the base case described above, incorporate optimisation opportunities to the extent these are identified and validated, and will include an executable project schedule and capital expense estimate.

During the December 2024 quarter Greatland's Feasibility Study works progressed, including the following key activities:

§ Finalised scoping of the Feasibility Study, validated key technical decisions, confirmed Feasibility Study inputs;

§ Shortlisted engineering and technical consultants and tendered Feasibility Study packages; and

§ Scoped early works package for ventilation shaft development (critical path), with technical and commercial clarifications largely resolved. Greatland is working to de-risk this package and secure availability of key construction equipment.

Paterson South Farm-In and Joint Venture Arrangement, Western Australia (Greatland earning up to 75%)

During the period, reverse circulation (RC) drilling (4 holes for 990 metres) was completed at the Chilly prospect at Strickland (E45/4807), and diamond drilling at Triangle South (E45/5532) at the Teague prospect (4 holes for ~1200m) and Skylar (E45/5351) (6 holes for ~2,500m) at the Bootstrap Leon and Skylar prospects.

RC drilling results from the Chilly prospect were reported on 7 November 2024 (refer to Greatland's RNS announcement titled "Paterson Exploration Update") and included 37m at 0.13% Cu and 0.21g/t Au including 1m at 6.1g/t Au in first pass reconnaissance drilling. The mineralisation is considered open along strike and down dip and follow up drilling is planned for CY25.

Encouraging alteration and sulphides were intercepted in diamond drill holes at Teague and Skylar. Results for the drilling will be reported in CY25 once all assays have been received.

A gravity survey was undertaken at the Atlantis prospect on the Budjidowns (E45/4815) tenement in FY2024. Modelling of the Atlantis gravity during the period has identified four targets with drilling planned in CY25.

During FY24 a surface sampling program was undertaken on the Wilki Lakes (E45/5576) tenement. Assays returned in HY25 showed no significant results.

Soil sampling was completed at the Calypso prospect on Basel (E45/5122) and returned elevated pathfinder alteration minerals. Follow up air core (AC) drilling is planned for CY25.

Exploration, Western Australia (Greatland: 100%)

Telfer near mine exploration

During the period a review of existing work was commenced identifying several targets with high prospectivity. The planned exploration program for CY25 includes a significant drilling program of ~12,000m, geophysics including Induced Polarisation (IP) and magnetic surveys and surface sampling programs across several targets.

Paterson Regional Project

During the period, Greatland completed diamond core drilling on the Scallywag exploration licence at London with two diamond holes for ~1,800m testing a Magneto-telluric electromagnetic conductor. The anomaly was resolved as a greater conductive cover depth and no significant mineralisation was encountered.

The Scallywag and Juri projects will now be combined into the greater Scallywag project.

Ernest Giles

Greatland's planned exploration program at Ernest Giles for FY25 includes a regional geophysics program across the project tenure, as well as a targeted IP survey and 6,000m of drilling at the Meadows prospect.

Panorama

In November 2023 Greatland announced the results of a surface sampling program at Panorama, with results including 27 soil samples from the Ni_04 prospect returning above 0.1% nickel over a 1.4km strike extent, and a peak result of 0.3% nickel in a rock chip sample.

These samples sit within the Dalton Suite ultramafics, which the results confirmed as nickel enriched and a potential primary nickel sulphide host. The large extent of the prospective Dalton Suite ultramafics within the Panorama tenure, and the existence of several untested highly prospective conductors, presents the potential for a substantial nickel discovery at Panorama. Greatland is planning its next steps to effectively test both the geochemical and geophysical anomalies on the tenure.

Bromus

The Bromus project was not actively explored during the period. In February 2025, the Group sold its Bromus Exploration Licence E63/1952 to a subsidiary of Ordell Minerals Limited (ASX:ORD) Ricochet Romance Pty Ltd (Ricochet Romance) in exchange for the allotment and issue of 125,000 fully paid ordinary shares in Ordell Minerals Limited. Additionally, as part of the tenement sale the Group surrendered Exploration Licence E63/1506 to Ricochet Romance the same subsidiary of Ordell Minerals Limited for cash consideration of £0.1 million.

Mt Egerton

During the period, the Mt Egerton project grew with the grant of a further four tenements, Munjang (E52/4361), Mt Egerton (E52/4362), Egerton West (E52/4389) and Combine Bore (E52/4432) for a total land holding of 482.5km². The land access agreement was also progressed during the period.

Senior management changes

During December 2024, Dean Horton resigned as Chief Financial Officer to pursue other opportunities. Greatland thanks Mr Horton for his contribution, including towards the successful debt finance process in connection with the acquisition, and wishes him the best in his future endeavours. Monique Connolly has been appointed as Chief Financial Officer, a role she has previously held and excelled in.

With effect from 4 March 2025, Joanne McDonald has been appointed Joint Company Secretary. Ms McDonald has over 18 years of experience in senior management and executive roles within the mining industry. Prior to joining the Company, Joanne was Company Secretary and Head of Corporate Affairs of IGO Limited, an ASX100 mining and exploration company. Ms McDonald holds a Master's degree in Corporate Governance, and is a Fellow of the Governance Institute of Australia.

Significant events after the balance date

In January 2025, financial close was achieved in respect of the A$75 million (£38 million) Working Capital Facility (described above).

In January 2025, the Group recorded its maiden concentrate shipment, the proceeds from the sale were £48.0 million and were received on 23 January 2025.

In February 2025, the Group sold its Bromus Exploration Licence E63/1952 to a subsidiary of Ordell Minerals Limited in exchange for the allotment and issue of 125,000 fully paid ordinary shares in Ordell Minerals Limited. Additionally, as part of the tenement sale the Group surrendered Exploration Licence E63/1506 to Ricochet Romance, the same subsidiary of Ordell Minerals Limited, for cash consideration of £0.1 million.