Tim Roberts – 19.6%
Management Ownership – 25%
Galena, owns 86.16% of Abra Base Metals Project, a globally significant lead-silver project located in Western Australia that commenced construction in September 2019. Abra’s feasibility study envisages development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing approximately 95kt of lead and 805koz of silver per year after ramp-up. Based on a pre-development capital expenditure estimate of A$170 million, the FS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.
Alex Molyneux, Managing Director & CEO
Alex Molyneux is metals and mining industry executive and financier with 20+ years experience. He was CEO of Paladin Energy Limited (ASX: PDN) (2015 – 2018) one of the world’s largest uranium companies, where he optimized its operating business, completed a US$700M successful recapitalisation of the company and a re-listing on the ASX. Alex serves on a number of public company boards, including: Argosy Minerals Ltd. (ASX: AGY), Metalla Royalty & Streaming Ltd. (TSX-V: MTA), Tempus Resources Ltd. (ASX: TMR) and Azarga Metals Corp. (TSX-V: AZR).
What is your rationale for attending 121 Mining Investment?
Galena is well-funded but as a relatively new company (IPOed in September 2017), our aim is to raise our profile more generally as we continue through construction of Abra.
What recent news would you like to highlight to investors attending?
12 April 2019 – A$90M investment into Abra by Toho Zinc of Japan
22 July 2019 – Completion of outstanding feasibility study for Abra
3 October 2019 – Commencement of construction at Abra
9 April 2020 – Completion of box-cut mining an 9% through overall project construction
What are your key goals for the next 3, 6 and 12 months?
Commencement of underground decline development
Processing plant to be under physical construction by EPC contractor
75% construction complete
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Delivering our Abra project development within its scope, budget and schedule – We’re overcoming this by having expanded our team with the highest quality of engineering talent and site supervision together with using experienced contractors for major tasks.
Global macro and lead market conditions – We mitigate this by having a strong margin and being well funded.
What do you think makes your company such a compelling investment?
Galena’s Abra project is high-grade, very conventional and located in one of the worlds lowest risk mining jurisdictions. Considering all of this, the company is trading at a very wide discount to projected valuations.
Galena Mining is an ASX-listed company that owns 86.67% of the advanced Abra base metals deposit, located in the Gascoyne Region of Western Australia.
The Abra base metals deposit (Pb-Ag-Cu-Au) is one of the largest, undeveloped lead deposits in the world. The project is located approximately 200km north of Meekatharra in the Ashburton Basin of central Western Australia. The tenements are accessible via the Great Northern Highway via public unsealed roads. The company has a strategy of targeting the proven high-grade mineralisation at Abra in a high-grade, low-capex development strategy, whereas previous owners contemplated a large-scale, bulk mining operation.
Abra has undergone extensive exploration since discovery (early 1980’s) and a substantial resource has been identified. The Abra deposit is broadly split into an upper lead (Pb) and silver (Ag) rich zone (Upper Lead Zone), which overlies a polymetallic (copper-gold-lead-silver, Cu-Au-Pb-Ag) zone (Basal Copper Zone).
Drilling has identified a substantial, high-grade core of massive lead-silver mineralisation that can be described as a ‘core’ feature within the Upper Zone. This high-grade core is highlighted by an extensive list of very high-grade results within a large, coherent ore-body.
Galena commenced construction in September 2019. Abra’s feasibility study (FS) envisages development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing approximately 95kt of lead and 805koz of silver per year after ramp-up.
Based on a pre-development capital expenditure estimate of A$170 million, the FS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.
Following the outstanding FS, further infill drilling was conducted to increase confidence in the early years of the mine plan. This has been successful and an upgraded JORC Mineral Resource estimate was announced in October 2019, comprising 41.1Mt at 7.3% lead and 18g/t silver – representing an ~8% increase in contained lead and ~10% increase in contained silver, compared to the December 2018 Resource.