Transcription of The Stock Network Interview with Kincora Copper (ASX:KCC) President and CEO, Sam Spring
Lel Smits: Sam, welcome to the Stoke Network. Thank you, Lil, for having us on. Now, Kincora has just released its quarterly, which was a very busy period for the company. Can you talk us through the highlights and also the multi-leg strategy that you’re currently pursuing?
Sam Spring: It is, Lel, and that’s where the opportunity to walk through it is really appreciated. We’re drilling. We’ve got further deals that were announced during the period and we’re seeing management fees ramp up.
So I guess there are multiple elements to support a re-rate. And most importantly, we’re starting to see this recognised in the marketplace, but there’s more work for us to do.
Lel Smits: OK, now, during the quarter, drilling occurred at two projects, fieldwork recommended at another, with drilling shortly expected. What developments have you made over the quarter through your new asset level partners?
Sam Spring: That’s right, Lel, and during the period, we announced a second deal with Anglo Gold Ashanti, a second earn-in deal. We’re still drilling at our first deal. We’re on hole 16.
We get a 10 per cent management fee from operating that project. We did a ground gravity survey that identified more targets. There’s an exploration update that’s due relatively soon for that.
So we’re getting on with drilling. The second deal with Anglo Gold supports the longevity and there should be some more details of what that program looks like in due course. Our partner, Earth AI, also was drilling.
They drilled a fifth hole at our Cundumbul project. They’ve done some further geophysics. We’re expecting to get an update from them shortly, which we’ll provide to market.
And then in Mongolia, Orbminco, our partner there that’s earning in, they’ve been out in the field already. They’re getting ready for geophysics this month, drilling next month. So, again, there’s a pipeline of news for coming from these partner funded drilling programs that our shareholders get exposure to, but they don’t have to fund themselves and indeed, with the Anglo Gold relationship, we actually get an income stream from that.
Lel Smits: And Sam, your quarterly also stated you believe Kincora is on track to achieve your target of being the operator of exploration budgets of over $10 million per annum from its portfolio. What are the next key catalysts that we can expect from the company?
Sam Spring: Absolutely and obviously, we announced that sixth deal, the second with Anglo Gold Ashanti. We’ve had a number of site visits, asset level conversations for our remaining projects. Those conversations are progressing well with, I guess, what we’re expecting this field season with Anglo Gold and where these conversations are leading to.
And we’re expecting further news flow and deal flow in the near term. We feel that confidence to come out publicly and talk about this internal target that we’ve got of $10 million a year of project funding that we’re managing, that we’re getting a management fee for, which would get us to a self-funding model, which is pretty unique in the explorations page where you have that amount of drilling that’s being done in partnership with majors who are looking for new globally significant projects and discoveries. And you’re aligned with shareholders not being diluted at the listed company level with those management fees.
Lel Smits: Absolutely and finally, I just want to ask about your increasing liquidity and market recognition. Usually, the quarterly also mentions a shareholder overhang and transfer of shares from the ASX to TSXV. Can you walk me through this?
Sam Spring: Yeah, it’s a bit unusual, but I guess what we’re very pleased to see is our dual listing in Canada, TSXV, has seen very good liquidity. We’re looking to re-engage with that marketplace. And this project generator, prospector generator model is more familiar in that Canadian marketplace and indeed, we’ve got a fantastic direct peer with inflection resources that’s drilling adjacent to us at Ningen. It’s got the same partner Anglo Gold Ashanti, similar targets. And that’s three times our current market cap.
So going out there in this prospector generator model being well recognized in the Canadian marketplace is being reflected in our liquidity. We’ve seen a significant amount of shares transferred from the ASX being funded onto the TSXV where that market we’ve traded at a premium. We’ve also seen very good liquidity on the ASX in part from a former larger shareholder exiting that position.
They’ve closed that fund that we’ve been held in. And that’s been, I guess, a significant amount of shares traded through from looking at the computer share reports. That balance is pretty much immaterial now.
And we’re just working through the very much the tail end of that. So it’s been great that that’s been an opportunity for new shareholders to come on the register and with the foundations that we’ve got in place with drilling, further deal flow, management fees increasing. We think it’s a really exciting opportunity going forward in the near term.
Lel Smits: Well, thank you so much for running me through the highlights of your quarterly and look forward to what’s ahead for the company.
Sam Spring: Thank you, Lel.
Ends