Geopacific Resources

Primary ticker: ASX:GPR
Stage of development: Development
Primary minerals: Gold
Project to promote: Woodlark gold project

Live financials

Geopacific Resources Limited (ASX: GPR) is an emerging producer focused on developing the 1-million-ounce Woodlark Gold Project (Woodlark), which is located on an island in Papua New Guinea.

The Company presents an attractive investment proposition in the pre-development space. Woodlark has a recently completed feasibility study that present a robust cash generating profile over an initial 10 year period. Exploration upside of the goldfield is easily 5million ounces. The project is shovel ready, permitted and undergoing commercialisation by Geopacific’s experienced team who hold a particularly strong track record in developing similar projects. Financing options are currently being investigated to advance the project.

Management Profile

Ron Heeks – Managing Director

A geologist with over 30 years of experience in the mining industry, Ron has held senior roles in exploration, mine development and management. His specialty is re-working resource projects in South-East Asia to turn them into profitable operations, particularly in challenging environments and those that require barge-supported logistics. Ron has garnered the financial support of industry-leading, resource funds resulting in investments to majority shareholding positions.

What is your rationale for attending 121 Mining Investment?

Geopacific is currently funding the project via debt and equity and is seeking potential partners to assist in moving the project forward. The robust nature of the technical aspects and the current market conditions provide for significant upside for gold investors with a medium term investment strategy. The Company would like to leverage Woodlar’s potential to identify investors to support the current significant shareholder base and potential development financiers.

What recent news would you like to highlight to investors attending?

Geopacific released Woodlark’s Definitive Feasibility study in November 2018 which confirms a high margin development project that generates strong cash flow.
Project highlights include:
– High margin from AISC as low as A$866/oz (Yr1-5)
– Upfront operating cash flow generates rapid payback of 2.2 years
– Simple process route with gold production averaging +100koz pa (Yr1-5)
– + 1Moz gold Reserves and 1.57Moz gold Resource
– Operating permits granted in proven mining investment jurisdiction with supportive community
– Immediate near-pit resource growth potential and highly prospective regional exploration portfolio

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Discussions with debt and equity providers for equity raise and project financing.

6 Months:

Secure project financing.

12 Months:

Commence development/ construction. Continue regional exploration to highlight the potential of the estimated 5Moz mineral field.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Overall risks are relatively low, given the advanced nature of the Woodlark Gold Project and that AU$150 million was spent by previous owners.
Political and geographic risk. Woodlark is surrounded by some of the world’s best gold mines many of which have operated for decades. Projects comparable to Woodlark include Newcrest’s Lihir project (66Moz Au) and St Barbara’s Simberi project (6Moz Au) both of which are on islands north of Woodlark.
Island location. Concerns over operating on islands are based largely on perception. Geopacific’s team has successful experience with seaborne logistics, which can provide significant savings. The island benefits from gentle topography, minimal external social and political influences and a local population whose views are aligned with Geopacific and supportive of the project reaching production in the near term.
Investor confidence and perceived risks of operating outside of a first world location. Geopacific has an experienced team has engaged blue-chip service providers to partner with the Company to deliver results Is delivering to advance the Project
Funding risk. The Company has sufficient capital to meet its current objectives and enjoys the strong support of several major institutional investors.

In a sentence, what do you think makes your company such a compelling investment?

Geopacific’s proven management team holds the key to develop one of the last multi-million ounce, fully-permitted, unmined gold projects in the world.