Nagambie Resources Limited (NAG) Earnings Call Transcript & Summary

Hello, ladies and gentlemen. Welcome to the 2024 Annual General Meeting of Nagambie Resources Limited. Just after 11:00 a.m. I'm advised that a quorum of members is present and therefore, declare the meeting open. To allow for attendance by as many shareholders as possible, we are convening the meeting as a hybrid meeting and I welcome shareholders and visitors joining us online and in person. My name is Kevin Perrin, and I'll be chairing today's meeting. Joining me in person are my fellow directors, Michael Trumbull on my right; James Earle, CEO, on his right further; and to my left, Alfonso Grillo and Bill Colvin. Alfonso is also the Company Secretary. Nagambie's CEO, James Earle; and Jason Croall from our auditor, RSM, are present with us today. Notice of this AGM and explanatory memorandum have been circulated in accordance with the requirements set out in the company's constitution and I take these as having been read. The order of proceeding for today is for a Chairman's address, followed by a formal business of the meeting to be conducted and then our CEO, James Earle, will provide a shareholder update on the company's business activities. There are 9 resolutions for today's meeting, each of which I will put to a vote by poll. The other item of business is to table the company's annual financial statements and reports. I have appointed [ Michele Sabatino of Fernville Group ], who is assisting the company to run today's hybrid meeting to be the returning officer. Results of all resolutions will be lodged with the ASX at the conclusion of the AGM. Please note that I intend to vote any proxies -- I intend to vote any open proxies, which I hold as Chair of the meeting in favor of the resolutions and the Board unanimously recommends that shareholders also vote in favor of the resolutions with the directors abstaining in respect of proposed issue of options to directors. Before I put each resolution to the meeting, there will be an opportunity to ask questions about that resolution. Only shareholders holding a blue voting card or a yellow non-voting and written card can ask questions. To ask a question virtually, on the bottom of your Zoom screen, there is a question-answer button. Please type your question and hit send. I would ask shareholders to type in questions separately. This way we can give all shareholders a fair and reasonable opportunity to ask a question. Should you prefer to ask your question verbally, please request us by typing into the Q&A and also indicating which resolution or subject your question relates to. If an online attendee has a technical issue, please click on the raise hand function at the bottom of your screen and our support team will gladly assist. Please keep your questions to the topic of each resolution. Any question not related to a resolution will be answered following the CEO's presentation. We will then open the floor to questions of a more general nature. As you would appreciate, as a listed company, the only questions that we can respond to are those we can do so using public available information. This includes where the question is in relation to forward-looking activities. We now move to the formal business of the meeting. Just before I proceed, if anybody in the audience has got their mobile phone turned on, could they please turn it off. Good morning fellow shareholders and guests. Our CEO, James Earle will be giving a presentation on the status of our various significant assets later in this meeting. We will also be able to answer any questions which you may have. As announced to the ASX this morning the company is entering into a trial arrangement, commercially confidential, to store PASS material from the North East Link Project under water in the West Pit at the Nagambie Mine. We are hopeful that the trial arrangement to last several months, will lead to a longer-term arrangement and the generation of significant cash flow for the company. Global markets have been volatile recently amidst uncertainty on how the political measures being considered by the new Trump administration in the U.S. will unfold next year. Gold and antimony prices, which are of particular interest to Nagambie have been near record prices in Australian Dollar terms. In the current economic and political environment, with higher inflation likely and global conflicts continuing, gold and antimony are likely to remain in high demand. Many central banks continue to accumulate gold and the antimony price rise in particular has been dramatic, following the announcement by China in August that they would implement export controls on this very scarce metal. In May this year we announced our maiden JORC Inferred Resource based upon our drilling results up to November last year. That resulted in a maiden gold equivalent resource of 153,000 ounces. This was prepared based on gold and antimony prices, which were expected in January 2024. Since then, those prices have risen by around 40% and 200%, respectively. This has led us to examine the economic cut-off grade assumption used in the original resource calculation. We concluded that a cut-off grade of 4 grams per tonne rather than 5 grams per tonne was now justified. The lower cut-off grade, together with the metal prices at the end of October 2024, resulted in a dramatic rise in the gold equivalent figure to 322,000 ounces at a gold equivalent grade of 18.6 grams per tonne, a very high average grade by industry standards. We expect that this upward revision is only the beginning of the increase in size of our resource since we have only completed limited drilling to a very shallow depth below surface of less than 280 meters. The nearby Costerfield and Fosterville mines are currently operating at depths of around 1,000 meters and our neighbor and shareholder Southern Cross Gold has had high grade drilling results down to that depth. Last week we announced that drilling had recommenced at the Nagambie Mine. This is the news that many shareholders have been waiting for. We have a large, potentially high-grade, un-estimated area, with good geological continuity, where the first 5 intersections are planned. Other deeper and wider areas will be the focus of later drilling. We all will await the results from this drilling program with great interest and anticipation. I was recently appointed Chairman of the company in October. Previously Mike Trumbull had been the Executive Chairman of Nagambie for 16 years. That was an incredible commitment from Mike, and I would like to express our sincere thanks for all that he has been able to achieve during that period. It was only due to his insight and lateral thinking that the company re-interpreted our geological models and focused the drilling program with almost immediate success. We are fortunate that he is still committed and working hard to advance the interests of all shareholders. Further, I thank my fellow directors, our hard-working CEO and his team, Golden Camel, our joint venture partner and consultants who have helped to make this an important transitional year for the company. I would also like to record our thanks to Warwick Grigor and Tom Quinn who retired as directors during the year. We still have a lot to achieve but we are in a good position to do that in the knowledge that we have an approved mining license and large areas of freehold land where our current high-grade gold and antimony JORC Inferred Resource is situated. The oxide-gold toll treatment processing plant to be constructed on site at no cost to Nagambie under our joint venture with Golden Camel will generate significant cash flow for the company. Having these assets located on our freehold land gives us a huge advantage. We are hoping that the next phase of our drilling will be the catalyst to improve our languishing share price. At a market capitalization of less than $20m, our company is significantly undervalued. I look forward with confidence to our exciting future. Next item on our agenda is the annual financial report. I now table the financial statements, directors' report and auditor's report for the company and its controlled entities for the year ended 30 June 2024. A copy of the annual report was lodged with the ASX and sent to shareholders who requested it. I would like to invite shareholders to ask questions on the reports and the conduct of the audit. Where appropriate, I will ask Jason Croall of RSM Australia Partners, the company's auditor, to answer the questions. Alfonso, have we received any online questions?

We have no questions online, Chair.

No online questions.

No online questions? No questions from the audience? Thank you. We will now move to the resolutions. As I mentioned earlier, all resolutions will be put to a poll, which will be conducted once the resolutions have been put to the meeting. Resolution 1 relates to the adoption of the remuneration report for the year ended 30 June 2024 as found in the annual financial report. The Corporations Act requires that the remuneration report to be put up for adoption at the meeting. However, the vote on the resolution is advisory only and does not bind the directors or the company. The Board will, however, take the outcome of the vote into consideration when reviewing remuneration practices and policies in the future. Voting exclusions are contained in the explanatory memorandum accompanying the Notice of Meeting. Proxies received are now shown on the screen. Are there any questions from shareholders specific in relation to this resolution?

There are no questions online.

As no questions have been received, we'll proceed to the next item on the agenda. Resolution 2 relates to the reelection of Bill Colvin as a Director. Bill has been a Director of the company since 2021. Bill retires in accordance with the company's constitution and being eligible, wishes to stand for reelection as a director of the company. Proxies received are shown on the screen now. Are there any questions from shareholders specifically in relation to this resolution?

There are no questions online.

No questions have been received. Slide 7, Resolutions 3A, 3B, 3C and 3D. It is proposed that for the purposes of ASX Listing Rule 10.11, Chapter 2E of the Corporations Act and for all other purposes, approval be given for the issue of options to acquire shares to the following directors of the company. A, 4 million options to Mr. Kevin Perrin; B, 4 million options to Mr. Michael Trumbull; C, 2 million options to Mr. Bill Colvin; and D, 2 million options to Mr. Alfonso Grillo on the terms and conditions set out in the explanatory notes accompanying the Notice of Meeting. The options have an exercise price of the greater of $0.10 and 150% of the company's share price immediately preceding the date of issue. The options have an expiry date of 5 years following their issue. Key management personnel and their closely related parties are prevented from voting on a resolution affecting directors' remuneration for the purposes of Chapter 2E. However, the Chair may vote proxies on this resolution where the shareholder provides expressed authorization for the Chair to exercise the proxy. Under Resolutions 3A, 3B, 3C and 3D, shareholders are asked to consider and if thought fit, pass a resolution to approve the issue of the numbers of options to each director as set out in the slide. Proxies received are shown on the screen now. Are there any questions from shareholders specifically in relation to these resolutions?

There are no questions.

No questions have been received. Slide 8, Resolution 4A. It is proposed that for the purposes of ASX Listing Rule 7.4 and for all other purposes, approval be given in respect of the issue of 2,597,961 shares and 3,256,049 options to Mahe Capital Proprietary Limited on the 31st of January 2024. The ratification of the prior issue of shares and options pursuant to Resolution 4A will refresh the company's capacity under ASX Listing Rule 7.1. Proxies received are shown on the screen now. Are there any questions from shareholders specifically in relation to this resolution?

No questions online.

No questions have been received. Slide 9, Resolution 4B. It is proposed that for the purposes of ASX Listing Rule 7.4 and for all other purposes, approval be given in respect of the issue of 4 million options to Mr. Thomas Quinn on 22nd February 2024. The ratification of the prior issue of options pursuant to Resolution 4B will refresh the company's placement capacity under ASX Listing Rule 7.1A. Proxies received are shown on the screen now. Are there any questions from shareholders specifically relating to this resolution?

No questions online.

No questions? No questions have been received. Slide 10, Resolution 5. Listing Rule 7.1A enables the company to obtain shareholder approval to issue shares up to 10% of its issued capital -- issued share capital through placements over a 12-month period after the Annual General Meeting. The 10% placement capacity is in addition to the company's 15% placement capacity pursuant to Listing Rule 7.1. Further details relating to the 10% placement capacity are provided in the explanatory notes. Resolution 6 is a special resolution and must be passed by at least 75% of the votes cast by members entitled to vote on the resolution. Proxies are shown on the screen now. That should have been Resolution 5 that I referred to, unfortunately. Are there any questions from shareholders specifically in relation to this resolution?

No questions.

No questions have been received. Slide 11 is our poll. Thank you, ladies and gentlemen. I now put each resolution to a poll and direct that a poll be held for each of the resolutions. The poll has been launched on the Zoom for the remote shareholders. As mentioned earlier, Michelle Sabatino will conduct the poll as returning officer and voting is now open. Shareholders and proxy holders attending in person who have a blue voting card are encouraged to vote on the poll now. Shareholders attending virtually may click on for, against or abstain, then click next to move to the next resolution. Shareholders and visitors in attendance who are not voting, please take no action in respect of your yellow or white voting cards. For shareholders attending virtually, click on Skip Poll. Shareholders who have not lodged their proxy beforehand are encouraged to vote on the poll now. If a shareholder has already voted by proxy, you do not need to vote again unless you want to change your vote. Voting in the poll is entirely optional. If any shareholder is having difficulty on voting online, then click on the raise hand function and our IT support team will be happy to assist. Please now complete your voting. Thank you. I declare the poll closed. Voting results will be released to the ASX shortly after today's AGM concludes. Ladies and gentlemen, that concludes the formal matters for the AGM. I would now like to ask James Earle, Nagambie's CEO, to provide an overview of the company's business operations. Thank you, James.

Thanks, Kevin. Welcome to the people who braved a wet and muggy morning to come and join us today and welcome to the people online as well. The normal disclaimers apply to this presentation. Next slide. So, I'll start with a short overview of the company. Nagambie Resources, an exploration company, exploring for epizonal gold antimony mineralized systems across about 1,000 square kilometers of tenements in the Waranga Domain of the Melbourne Structural Zone. Our flagship project is the Nagambie Gold-Antimony Project, located at the Nagambie Mine, 100% owned by Nagambie. We have an existing mining license over that discovery and we have the permits to construct a toll treatment plant on that -- on the Nagambie Mine. Our corporate data about the company is listed there. Market capitalization, probably today just over $15 million. The owners, top 10 and 20 owners of the company, Mr. Perrin, who's here with us, of course, as Chairman, owns 19%; PPT Nominees, just under 10%; and Southern Cross Gold, 6.7%; and the directors and managers, around 25% of the share ownership. Our strategy on a high level has 3 components. Our primary focus is exploration, particularly this year and that's to discover mineable gold and antimony deposits through effective exploration techniques and with joint ventures. We're also striving to develop the Nagambie Mine site as a regional center for gold and antimony production. And we're making headways with realizing the -- and maximizing the value of our other assets, things like our land holdings, our space in our legacy pits and other quarry type products that we have on our site. Some of our recent achievements. We completed the initial drill program in October last year. That was 41 diamond holes, about 12,000 meters at a drill cost of around $139 a meter, which is very efficient. In May 2024 this year, we released our maiden JORC Inferred Resource based on an independent, comprehensive 3D block model prepared using the Maptek Vulcan software. And we retain that model and we'll be updating it as our drilling programs continue. Since May, we've provided 2 updates of the resource, one in July, one in November. And that's based on the incredibly increase in the prices of antimony and gold. So, the latest update compared to the initial May update has seen 110% increase in ounces in the ground -- gold equivalent ounces in the ground, a 30% increase in the resource tonnage and a 61% increase in the gold equivalent grade. We commenced our follow-up drilling program this week or last week, they were setting up and started drilling. And more recently, we've just announced that we're entering into an arrangement to trial the receipt of WASS Acid Sulfate Soils from the North East Link Project at the Nagambie Mine. I'll talk about the Gold-Antimony Project first. As I said, 100% owned on our freehold land, covered by a mining license, Australia's highest-grading antimony resource. To date, we've discovered 4 lode systems with multiple veins within those lodes to a maximum depth -- sorry, to a depth of 280 meters so far. And this has a very high potential to increase with our extension and depth extension drilling. The resource announced in November are the figures there and the percentage increases you can see there. All these numbers are directly or indirectly influenced by the price of gold and antimony. For example, the commodity price is influenced -- influences the cut-off grade and this influences the modeled resource tonnages and the in-ground quantities and the overall grade. The gold equivalent figures, which convert the poly metal resource figures into a single gold equivalent figure is directly determined by the relative price of gold and antimony. Because the veins intersected to date are very antimony-rich, the resource is very highly sensitive to the price of antimony. The graph here shows you what's happened with the price of antimony across 2024. Our maiden JORC Inferred Resource back in May 2024 used an antimony price of around $18,000 per tonne of antimony. The July update, you can see was around $27,000 and our November update was over $50,000. It's -- the price of antimony has increased from there. And what we're seeing there is increase in demand for antimony in things like batteries and ammunition, electronics, specialty glass, but also its importance in the defense industry has become apparent recently. It's used in communications equipment, night vision goggles, ammunition, submarines, warships, optics, lasers, all those type of things. So, while the demand side has increased, China, which controls 50% of antimony production, has imposed -- in mid-September, imposed export controls to safeguard national security and interests and to fulfill national obligations such as non-proliferation. So, you can see the price of antimony has increased significantly since China announced those export controls. And the statement really gives you an idea of why they did it and what they're thinking in terms of the importance of antimony in the defense industry. Many of you will have followed the gold price and also know that it's at record highs. I believe yesterday, it came off a bit. It's probably around AUD 4,000 per ounce today. but that also plays a role in the size of our resource. Our geological resource model was able to calculate the quantity of ounces per vertical meter and that's shown in this graph here. It's taken 10-meter slices and calculated the modeled ounces and it's peaked at around 2,750 and we could average around 2,000 ounces per vertical meter. As mentioned by Kevin and myself already today, we're only down 280 meters. We know that at Fosterville and Costerfield, they are currently down at 1,000 meters. So, there's a lot of drilling at depth to go and there's potential for a high level of ounces per vertical meter. Our drilling program is aiming to double our resource. So, how are we going to do that? I'll run you through that now. There's probably 6 ways that we know that to target to double the resource. The C1, 2 and 3 and the N1 lode systems are all open at depth. Our current drilling, our first hole is targeting the N1 lode system, which is that East-West striking lode system just on the Northern side of the West Pit. We also know that there's likely to be more lode systems along strike to the East towards the East Pit and at least an inferred strike length of about 2 kilometers to the Southwest of the West Pit. And we're expecting to find more lode systems along strike. Thirdly, the N1 lode system, it's already has a strike length of around 100 meters to 200 meters. It's likely to have a lot longer strike length and this will be tested by our early drilling. Fifth, Pole 28 drilled an intersection of the Nagambie Mine thrust, which exists to the North of the West Pit. It returned a grade of 340 grams per tonne over 0.2 of a meter and that lines up where the C1 system would extend and intersect the Nagambie Mine thrust. So, we hypothesize that there could be high-grade shoots, further high-grade shoots along the Nagambie Mine thrust. And lastly, the N1, the lode system is thought to be a conjugate fault to the Nagambie Mine thrust. And therefore, a similar thrust to the South of the West Pit, term the 303 Shear Zone potentially could have other conjugate faults to it that are mineralized. So, they are the 6 ways that we're going to aim to double our resource with our current drill program. The Nagambie Resources, as I said, has about 1,000 square kilometers of tenements in the Waranga Domain, Northern Melbourne Zone. You can see those tenements on the screen there, about 64 kilometers from the Fosterville Mine and 37 kilometers from the Costerfield Mine. Our tenements include the Whroo Goldfields and outcropping underexplored areas in the Miepoll area. The Nagambie joint venture with Golden Camel Mining was set up to develop a gold and antimony processing plant on our site, renewable energy hub to advance our microbial bioleaching technology and to repurpose tailings in a circular economy type approach. So, Golden Camel bring to this joint venture the initial processing plant funding and development and a very experienced team, Nagambie, the Nagambie Mine site, land and supporting facilities. And that diagram shows you the other assets that the joint venture parties have that will feed the processing plant once up and running. Spatially, this is what it looks like, the potential feedstocks for the processing plant. Golden Camel have 6 deposits over 4 mines, all within trucking distance of the Nagambie Mine, where the processing facility will be built. And of course, Nagambie is 1,000 square kilometers of tenements, provides a pipeline of new projects. And we have the, of course, the Nagambie Gold-Antimony Project at the Nagambie Mine that we're drilling right now. So, in the next 12 months, we'll really be focusing on drilling. We've just recommenced the drilling as announced and this will be our main focus to really keep drilling, update our resource as results come through. And in the latter half of the next 12 months, we'll be looking at permitting underground declines for potential underground exploration. But our main focus really is drilling, drilling and drilling. It's the end of the short presentation, I'm very welcome to ask questions.

[indiscernible] drill, drill, drill. Just in terms of the funding for it, obviously, good news this morning, but that's still all to be seen how that sort of transpires is the thought that if that was to come off and be successful, that does the revenues from this sort of enable the drill to keep drilling or where are you looking at sort of funding for?

That would be excellent if that could -- it has the potential to provide enough funding for the drill.

It has the potential?

Yes.

More than enough.

You're talking about aggregates inquiring earlier in the piece. Is that from the previous leftover from Perseverance?

Correct. Yes.

Basically, you are reprocessing their tailings and getting that offsite?

The overburden material, we are looking into the tailings to see what can be done with that. Although, the tailings -- the heap leach material has some gold in it and the idea of the microbial bioleaching is to leach it out. So, yes.

With the drilling, like it's only at 280 meters, so you're not like, say, Spartan, which has got to hit the ore body at about 1,000 now. How much more drilling would you do from surface like before you want to get the decline in and then being cheaper from being underground cuttings? How soon would that be? 12, 18 months? Where we are with the permitting for the decline? Has it just gone in? Or is it...

That's about right, James.

Yes, 12 to 18 months drilling. So, the permitting is very early stage. So, we need to get through that. And the drilling results will support that permit. The regulators want to see a reason why you're wanting to put in a decline.

And that will be a standard 5x5 production decline. So, you do the 2 in 1?

That's an option. That's an option. We haven't set on how we get down there, but that is an option.

It will be up. The dimensions will be partly decided by the winning tender because different contract miners have different equipment and preferences for decline sizes.

Yes. Okay. And as far as what you're intercepting so far with the veins, depending on what prices say, you go up or down when you cut-off. Is there a potential to add like have you got low-grade material there that's just waiting for the price to go up a bit, so you can increase the overall resource? Because I read in the report, you've got a slight halo around the veins.

Well, most ore bodies do. And James put a slide up that showed that our tonnage went up from the main resource to the resource by 30%.

There's everything to...

That's another 30% blocks, if you like, outside of the initial block. So, there's no further drilling. So that gives you an idea of dropping the cut-off grade from 5 to 4 had that effect.

Right. Now the freehold land that's complete freehold, there's no native title issues whatsoever? Has there been any contact from any of the local indigenous groups?

Not to do with that freehold land.

No. So, it's completely like freehold farmland?

There's no [Technical Difficulty].

So, the mine site has Crown land and freehold land. Our discovery is on freehold land where we're drilling at the moment is on freehold land. There could be extensions of the discovery into Crown land. We haven't looked there yet. We may. But no, we haven't had any discussions with Crown land managers and the indigenous people who have the Native title over that. So, not yet.

And being in farm landing area, is there any issue from any of the surrounding farms? I mean being an underground mine, it's probably less observed than an open pit, but...

No. We have good relationships with our neighbors. We have the Costa mushroom facility on one side. So again, another type. Industrial, we own the free -- well, we leased to purchase the freehold land to the South of us. So, there's plenty of buffer area there. To the East is a farmer. We get along very well with him. And further -- sorry, further West of that is a tip and a sewage. So, it's an area that I know council want to develop for industrial purposes. They put out a planning study at the moment to develop that area for this type of activities.

As far as the 2 joint ventures, is the other ore that -- has any med work being done? I know it's very early stage because it's putting the cart before the horse. But does the ore that's coming from Golden Camel match up to the ore that Nagambie has got? Or is it going to be -- say, we've got to run both through the plant at the same time? Or will it be batch tolling, Golden Camel, then Nagambie?

So, the proposed toll treatment plant, the toll treatment plan is designed to take all different types of ores. So, that's the key. Golden Camel ores, the Nagambie ores and a lot of stranded assets that are in trucking distance to the mine site.

Those stranded assets that you talked about, have -- has anyone approached you to say, look, I've got this bit of ore or a bit of gold in the ground, can we do a deal?

I understand people have approached Golden Camel about...

Through Golden Camel we'll come back to Nagambie.

Golden Camel is the manager of that JV.

Yes. Okay. Got it. So, you're throwing up the land and they're handling the other end of it.

Putting up all the money for the oxide plant. Subsequent plant, a sulfide plant would share 50-50 with Golden Camel.

But you'll use the cash flows from the first stage...

As things progress, we expect to be...

Now the mill has been designed or is that still in process? The final design of the plant?

It's being designed. So, the oxide plant is being designed.

Detail design.

Detail, yes.

The sulfide plant. It's not that we'll go into detailed design. Is that right?

That's right. So, a pilot plant. The sulfide is being developed. I don't know if it's been fully designed yet, maybe concept anyway. That pilot plant, I think, will be built and then expanded.

Okay. The only reason I ask things like [ SAG mill ], you need a 12 months before you order it and then it's 12 months.

[Technical Difficulty]

Okay. Is that left over from Perseverance?

That's Golden Camel equipment. Paying for the oxide plant.

So, they've already got stuff on site.

Yes. Crushers, ball mill.

So theoretically, if you had the gold today, how long before you could start putting it through the mill?

From point of funding Golden Camel are talking...

10 to 12 months.

10 to 12 months. They've got the packages all lined up ready to go.

Sitting in containers just put it together.

But the steel is coming from Vietnam? They've done a lot of work.

Yes, they're saying, yes, it's in trained.

It's the equipment, they just need the steel and the concrete to put it all up.

So, there was some months ago an announcement, there was some on-site works commencing. I wasn't clear just to what extent that was just how preliminary work. Obviously, the funding for Golden Camel has been the big what's waiting on.

Yes. They're still trying to finalize that.

What do we know in terms of where it's actually up to?

Well, we don't know actually where it's up to because it's -- we don't control Golden Camel.

What's the understanding or thought process around where it might be held accountable?

They're very confident of getting it. They're talking to various sources, we understand, but we're just getting on with our business. It helps that we're not having to contribute to the initial plan. There's time there. We actually think a source of funding down the track could be offtake agreements for antimony. It's no secret, China has rattled a few defense forces in the U.S. and Europe and Australia. You've got to have not just a couple of weeks of supply of [ ordinance ], you need more than that. So that's the current problem. There's a real shortage of antimony. China picked their fight.

So obviously, you wouldn't be sending it to China to be processed. Most likely, where would it go? To the U.S. or...

Well, Golden Camel have plans to treat it on site.

Treat it on site.

Yes. So, to treat the sulfide ores and produce a concentrate.

Antimony trucks. [Technical Difficulty] I don't know, one or both.

The oxide will need an oxygen facility on the site, a lot of power needed for that. So, it's not factored in, can be done. because we're building our NJV has planned to build their own renewable energy developments as part of that, biogas and solar. So there could be, but the plan is now to produce the metal. And there's a number of facilities around the world and the small ones in the U.S., in Europe and Belgium. There was one in Oman, I believe it's shut down, but China really has.

The only reason I ask is, theoretically, if they made a move on Taiwan, you really want to be sending it there to be processed and coming back in [indiscernible] of shells, just hypothetically speaking?

Golden Camel are intending sending a concentrate to China via Costerfield.

Realistically, I thought...

Because there's no guarantee will ever come back.

Will come back.

In what form.

There's a [ 3% ] velocity.

Excuse me, could I ask Michelle if there's any questions been received online?

There aren't.

There is no questions online, so we'll continue.

Okay. You talk about the biomass like gas as part of the renewable hub. Would that mean then you can go to the local farmers and say, have you got any off-cuts or do you actually become financial booster to the local farming sector?

Absolutely. So, all the green waste from Melbourne is a possibility. But also regionally, farmers are more interested in what comes out the other side, the compost and the rich, carbon-rich liquor. So, the part of the proposal is to use that material with the cleaned up tailings and make it a soil product that can be used regionally.

Carbon credits.

Also that could be on the cards to carbon credits?

Carbon credit is a big part of the overall plan.

So theoretically, with all the bits and pieces on the side, that will bring overall cost or cost of the project write down?

Absolutely. All backed by gold. And so we're in a better position to secure all the feedstocks for these -- for the biogas.

So, it will be something like [ Arcadia ] where the copper pays for the gold or the gold pays for the copper.

And in our case, the gold will pay for the antimony.

Got it.

Antimony is a good price. You're paying 0 or negative amounts to produce it. So, offtake agreements become critical. Very important. And we think, we just need Golden Camel to initiate things on the processing side. They've got approval to do things.

Okay. Now just one question with the [ PFAS ] proposal because...

PASS. We are not taking PFAS.

Not PFAS, no, no, that's what I do at work, but PASS. Would that just be like a submerged tailings operation where it goes in and kept under water?

Stays underwater.

Stays underwater and forever. And what will be the payment for that like? Is it ongoing over like years? Or is it just a one-off payment?

So no, we will be charging for people to deliver the PASS in this case, EPH.

It's like a gate fee.

Gate fee? Take like $10 a tonne or whatever figure it will be.

Whatever it is, commercially sensitive.

Yes, you understand but whatever figure, X dollar. And what would be the capacity? Like have you got more capacity than what they can deliver? Or is that yet to be determined?

Yes. We'd like to fill up the West Pit. That would be nice.

Fair enough. And then you wouldn't drain that then cap it just be perfectly kept wet.

Well, no, it's, PASS is rock and soil and eventually, you could cap it.

Cap it and make a level surface?

Turn it back into farming land or whatever we wanted to use it for.

Yes, I can't think of anything else. Just one thing. I'm careful what I say here. Hypothetically, with all the indigenous negotiations, particularly in Victoria with the treaty, what would the economics of the project, say, hypothetically speaking, if a 5% resource tax was put in for the indigenous community.

We have no control over that.

I understand that. But with the economics, would that totally derail the project or just means there's less profit.

No. We're not going to get involved in futuristic labor taxes.

Yes, but if they live, there's not much you can do, the governments.

They may not be the government.

Yes, we can all, but hope.

I think...

I've just heard something on the grapevine from someone system, that's all.

If they want to shut down all Australia...

I'm from Tasmania, so trust me.

Grade is king. Very high grade deposit.

So, really it wouldn't make that much differences, just less profit.

Who knows. That's a bit ahead of our thinking at the moment and -- but...

If you start getting taxed for using your own freehold land to produce profits and employ people, I don't see where a tax comes from over and above income tax and the current gold royalty in Victoria.

Anything is possible in a strange world.

Thank you for your question.

Thank you. Are there any other questions from the floor? Any other questions received online?

No, none.

Thank you. Thank you very much. Ladies and gentlemen, there being no further questions, that concludes today's Annual General Meeting and I declare the meeting closed. Thank you. Enjoy the rest of your day.