Transcript
hi my name is joseph de lapont i'm chief investment officer of no matter royalty company and very happy to be talking about our recent transaction on the plat reef mine in south africa with you today before going into flag reef perhaps just to quickly reintroduce nomad to those of you that are perhaps less familiar uh nomad is a new royalty company that listed in may of 2020 um our team is a highly experienced team previously with the cisco goal royalties and we've come together come back into the royalty space late last year in this latest venture and we've been hitting the ground running over the last 18 months we've executed on our strategy of taking an initial portfolio they required from orion mine finance as well as one from humana gold and growing that through seven transactions that we've completed over the last 18 months and we've been able to do that because our portfolio is very unique in that it has a lot of cash flow already within the business and what it has allowed us to do is to borrow in order to fund new transactions and continue to grow the company importantly this year we've announced three major transactions and deployed over 220 million dollars into these transactions that have really um allowed us to grow the business and put us on the map in terms of the overall royalty and streaming space one of those transactions was on the casserones mine in chile acquire copper royalty another one a 95 million dollar gold stream on the greenstone line in ontario and our latest acquisition 75 million dollar gold stream on plat reef a mine owned by ivanhoe and located in south africa these transactions are very significant because they demonstrate our team's experience in streaming space which is definitely an area that sets us apart from some of our smaller peers but it also represents two greenstone and play reef represent two very high quality assets that we now have brought into our portfolio these are transactions that are highly sought after that are hard to structure and that typically you see done by some of our larger peers but we've been punching above our weight and that is demonstrated by these last two transactions so i'll go and and speak about plat reef platte reef is an amazing deposit it's located in the bushveld complex of south africa uh in the limpopo province it's a mine that's owned by ivan platz ivan platts is 64 owned by ivanhoe um as well as 10 percent owned by tochu with a 26 own ownership by the be partners it's a very unique deposit certainly globally but also within south africa um because it's a flat line reef 26 meters wide in dimensions um and it makes this a very rich and very easy to mine deposit i had the pleasure of visiting the mine uh just about a month ago it's a very impressive operation we call it a development project but actually um ivanhoe is going ahead with full-on construction of this of this mine they already have uh one shaft completely sunk they're working on the second shaft and we expect them to start producing in 2024 and we were able to fund them along with orion on a 300 million dollar streaming facility 75 million of which is done by nomad to acquire a goal stream on this asset and with that funding ivanhoe can now continue and start the first phase of what will be the first of three phases for this mine the reason that we stream the gold on this asset gold is a by-product it's a primary pgm mine it's a very rich deposit it's probably one of the largest undeveloped pgm deposits in the world one of the lowest costs once up and running they'll be producing a below 500 an ounce making it very profitable and make making this a very important asset for ivanhoe which is great for nomad and for our shareholders in the long run the gold at this asset will be mined at the same time as the pgms so in 2024 when they start up the first phase we will begin receiving deliveries under this first phase of development as they continue towards a larger expansion going from 700 000 tons per annum to 5.2 million tons per atom by 2030. so what that means is initially we'll be receiving lower deliveries about 2 500 ounces uh per annum to nomad ultimately that will ramp up to about 12 000 ounces per annum to nomad and so while the the payback on our capital will be a little bit slower through phase one when that second phase kicks in um by 20 20 30 we'll begin receiving very significant deliveries uh within our portfolio and there's also talks about a further expansion to 12 million tons per annum in the long run that's currently under study it's not currently forecasted but definitely once this mine is up and running and generating significant profit one thing that we typically see with these operations is the operators want to mine them faster and then so they do carry on with these expansions this asset is a world-class asset it's operated by a tier one operator and with a 75 million dollar goal stream on it we've now acquired one of the most unique streams in the royalty space certainly one of the better transactions in 2021 and again it just shows that we are executing on our growth trajectory we started 18 months ago with a small portfolio we've now added uh very major assets to our portfolio and this is not the end we're going to continue to grow the business we have we are backed by one of our largest private equity funds in the mining space around mine finance we're continuing to work with them as we've shown with the greenstone and plat reef transactions they're bringing us very high quality deals and they're one of the best partners to have in the mining space um so lots lots to look forward to and ultimately every every move that we make is aimed at growing per share metrics delivering that per share value to our shareholders and with these transactions we've shown that we're well on our way
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