AGM 2023 minutes If you like this post, you know what to do...
Here is the summary of Robex's annual meeting, held on June 29, 2023. The purpose of this summary is to send you the information received, as if you were at the meeting. Therefore, I will not comment on this post.
Mr. Faucher opens the annual meeting by mentioning that most of the information is available on the SEDAR.COM site and on the ROBEXGOLD.COM site. The scrutineer informed Mr. Faucher that 95 shareholders were present at the meeting, for 442 million shares. The quorum is reached. Mr. Faucher announces the resolution which aims to renew the auditor Price Waterhouse Cooper.
The first point of the meeting concerns the 2022 financial statements, for which the information is available on the websites mentioned above.
The second point of the meeting concerns the appointment of directors, the total of which was set at 9 by resolution of the board of directors. 2 new candidates are presented, namely Gerard de Hert and Thomas Lagree. The professional profile of Mr de Hert is presented, and it is mentioned that he is currently transitioning with La Mancha Ressource Capital and In2metals. For Mr Lagree, he is a specialist in structured finance and has in-depth knowledge of the metals and mining sector. We are very pleased that Mr de Hert and Mr Lagree are standing as candidates in today's election.
We believe that Mr. de Hert will enable Robex to reach the full exploration potential of its properties and that Mr. Lagree will provide us with the benefit of his financial expertise in order to support the growth of the company by financing mergers or acquisitions. The board of directors believe that the arrival of these 2 new members will be very beneficial for the activities of Robex.
The next point of the meeting concerns the resolution of the consolidation of the shares in a proportion of 1 for 10. The board considers that it is important for the company to carry out this consolidation in order to facilitate the raising of additional capital. This resolution must be adopted by 2/3 of the ordinary shareholders present, or by proxy. This combination will take effect later, at the discretion of the Board of Directors, when it is in the interest of the company.
The resolutions for the renewal of the auditor, the appointment of directors and the consolidation of shares were adopted.
Mr Faucher informs us that the meeting will be followed by a presentation of the company, for a duration of approximately 30 minutes. The meeting is adjourned and the motion is seconded.
Mr. Faucher mentions that Robex went from being an explorer in 2016, with 300,000 ounces of gold in reserve, to a company which is now targeting a second mining operation with nearly 3,000,000 ounces of gold in mineral resources, in addition to strong exploration potential for future growth. He mentions that in the industry, it is very rare to see a mining development with less than 1 million ounces of gold. Moreover, it is just as rare to see a company develop a second project after only 7 years. Mr Faucher mentions that this was possible through the perseverance, dedication and funding provided by Mr Georges Cohen and his team. Hoping to conclude soon the second part of the financing for the Kiniero project, the company will continue its growth and will have the capacity to explore its properties with the cash flows generated by its 2 mines.
Mr Aurlien Bonneviot takes the floor. He welcomes the 2 new administrators. He begins his presentation by mentioning that West Africa is a very favorable territory for gold production, and that the growth potential is very important. He also mentions that most projects in West Africa are carried out by junior companies and that there are few major companies present there.
Speaking of Kiniero, he mentions that this region is very prospective and the future is bright for Robex. Based on 2 countries, it mentions the various Robex permits and reminds that the exploration potential is important for the Kiniero project. While the production cost of the Nampala project is around $1000, that of Kiniero will be lower.
Mr Bonneviot reports on the achievements of the year 2022 and mentions that the progress rate of the construction of the Kiniero project is now 17%. The other important transformation includes the arrival of new partners, including Taurus as financial support, in addition to several experienced people integrated into the team to manage construction and mining operations.
Mr Bonneviot mentions that the potential of the Kiniero project is significant, and that this potential was not present when Nampala started. He mentioned that the appointment of the 2 new members to the Board of Directors will contribute to the development of the exploration potential of the Kiniero and Nampala projects, in addition to ensuring the growth of activities with financial support adapted to Robex's needs.
Mr Bonneviot recalls that the DFS technical report has improved all the economic parameters and that he is very confident for the conclusion of the financing. He also mentions that Robex's objective is to focus on West Africa because the potential is significant, underdeveloped, and the gold sector needs a lot of consolidation. A first step has been taken by Endeavor and he hopes to be able to replicate this success. In addition to the exploration strategy, the objective is to grow rapidly through an acquisition strategy.
Mr Alain William takes the floor. He recalls the importance of ESG criteria within the group. On the social level, this translates into a proportion of 97% of local employees for the Nampala operation; very few expatriates; and by setting up a school mine. Environmentally, there is a strategy to decarbonize operations and initiatives have been taken with Vivo Energy with 3.9 megawatts of renewable energy in Nampala, or 30% of energy needs. For Kiniero, the plant will be powered by a renewable energy plant 4 times larger, for 50% of energy needs.
Regarding governance, a letter of intent of $115 million was signed with Taurus Mining and funds began to be used in April. The DFS was published in June, with economic parameters higher than the PFS.
The operating results continue to be maintained since 2017, in addition to the dividend paid in 2020. In 2022, Robex invested more than $15,000,000 in ordering the long delivery units for the Kiniero plant. Robex will continue to allocate free cash flows to the best place and if the opportunity arises, dividends will eventually be paid, without excluding the possibility of a share buyback.
Regarding the operating result, it is still very positive. For debt, it is 0.4 times EBITDA and the objective is not to exceed 1, which will allow the company to be well managed.
Mr Augustin Rousselet takes the floor. Regarding Nampala, the objective for 2022 was to support the group's growth, in particular the acquisition of Sycamore through the cash flows generated and the mobilization of the Nampala teams to Guinea. Some investments have nevertheless been made in Nampala with the aim of optimizing operations and ensuring the stability of results.
In the medium term, Mr Rousselet recalls the importance of continuing to develop the Nampala project with the aim of ensuring its sustainability. An exploration plan has been developed, drilling has been done on the Gladie permit and drilling will be carried out around Nampala, to the west and to the south. Mr Rousselet recognizes Nampala's ever-present potential. Nevertheless, he mentions that Nampala has the necessary resources for several years and that the resource renewal plan will not be executed in order.
Mr Bonneviot adds that all the processes developed for the Nampala factory are and will be recovered for the Kiniero factory. Several years were needed to set up these processes and it is an important asset of Robex.
Mr Bonneviot explains that future investments will be made according to potential. Budget allocation for exploration is very rigorous and targets are chosen carefully. As given by his experience, Mr de Hert will necessarily be an important asset for the selection of the best targets.
Mr Bonneviot explains that Robex is not the only one to appreciate the potential of the Siguiri basin in Guinea, and that 4 junior companies are developing projects there. In particular Predictive Disovery which is located on the same geological structure as Kiniero; Resolute further east; and Hummingbird Resources. Approximately 8,000,000 ounces of gold have been discovered in this region. He mentions that several shareholders and financiers consider this region very prospective.
Mr Bonneviot mentions that the singularity of Kiniero is that the cost of production will be very low, as will the stripping ratio of 2.8 and the low CAPEX required. Regarding the life of the mine, currently 9.5 years, they are very confident of being able to increase it quickly. With 1 million ounces of gold in the inferred category and located near the mining areas, in addition to the 24,000 meters of drilling that was not used in the last resource calculation, he is very confident to improve more about the metrics of this project.
Regarding the construction of the plant, several pieces of equipment have already arrived on site and the SAG crusher will arrive in October. As mentioned previously, 17% of the project is completed, all financially supported by the bridge loan from Taurus Mining. In 1 year, Robex will have 2 factories in operation, in 2 different countries. Mr Bonneviot considers that the construction time is within market standards, while the CAPEX is among the lowest. Since the project is a restarting site, several infrastructures have been refurbished and are already operational.
Mr Bonneviot recalls that the most important element concerns the short-term potential for increased resources. There are a lot of resources located within 6-7 kilometers around the plant that were not considered in the last calculation. With a higher drilling density, many resources can be added to the mining plan. Additionally, there are several indications that deeper drilling will yield appreciable results. As the surface is treated, drilling will be carried out deeper. North of Kiniero, they also have very prospective targets, already explored by Semafo. These areas are located 15 kilometers from the plant and are part of the same complex.
Mr. Bonneviot mentions that the Sycamore group recently discovered the Sabali zone and obtained results of 2.7 grams/tonnes over 112 meters, from the surface. With what Semafo has left, in addition to the current drilling program, he mentions that this will allow this project to give a significant economic return.
In 2025, with positive cash flows, it is planned to carry out much more aggressive drilling programs to quickly double the processing capacity of the plant. In summary, Mr Bonneviot considers that Guinea is under explored and that the potential is significant. The geological structure of Kiniero is the same as that of Fekola, Loulo, and other projects in western Mali.
This concludes the meeting and is followed by a question period.