Transcription of The Stock Network Interview with Kincora Copper (ASX&TSXV:KCC), CEO Sam Spring
Lel Smits: Kincora Copper has inked agreements to divest its Mongolian asset portfolio for US$10 million, marking a significant milestone in the company’s transition to an Australia-focused explorer and prospect generator. Following the previously received US$1.5 million option payment, Kincora is set to receive another US$3.5 million within five business days, with the final US$5 million expected to be released from escrow when the transaction ties up later this year. I’m joined today by CEO Sam Spring to discuss what the transaction means for Kincora’s balance sheet, its Australian growth strategy and the next catalysts as drilling continues across its New South Wales portfolio.
Sam, welcome back to the Stock Network.
Sam Spring: Thank you, Lel, for having us on. Now, the execution of these definitive agreements represents a major milestone.
What does this transaction mean for Kincora’s financial position and also strategy? Yeah, and it really strengthens our balance sheet. Well, at the last reported quarter end of March, we had 7 million Aussie in the bank. Since then, we’ve received that first 1.5 million US, which is 2 million Aussie.
Now we’ve got another 3.5, so another 5. So we’re almost seeing cash double this quarter. So it means we’re in a really strong financial position. And most importantly, it also just unlocks inherent value within our portfolio at 10 million see-through value for our Mongolian assets that I don’t think the market was ascribing any value for.
It’s a really significant milestone that streamlines the business, focuses on New South Wales, recycles capital to New South Wales. And now the key thing is unlocking the value that we’ve got for the other seven assets in our portfolio too.
Lel Smits: Fantastic. And in terms of current drilling activities, you’re currently drilling at Nevattiah South, also Condobolin. Can you please really provide an update here on progress and also expected news flow?
Sam Spring: Yeah, Nevattiah South, it’s early stage exploration in partnership and funded by Anglo Gold Ashanti, where we also receive a management fee. Results are looking good.
We’ve got them coming out to site next week. We’ve got our quarterly JV meeting coming up next month or this month, and I’d expect some positive news flow to come out of that once we go through that due process. As you say, we’re also drilling with our own shareholder capital at the Condobolin project, which sits in the southern end of the Cobar basin.
It’s a discovery that was made last commodity cycle that was open and we’re drilling and we’re seeing all the right indicators stepping out, going down deep, testing some new coincident geochem and geophysical anomalies. I guess the proof will be when we get the assay results back. But yeah, visually, it’s looking across both projects really good.
So plenty of news flow from the drill bit coming up.
Lel Smits: Fantastic. And in terms of more deals, also other activities, you’ve got other prospect generated discussions that are continuing across your broader portfolio.
Also a number of upcoming investor events. What should investors be keeping an eye out for?
Sam Spring: Yeah, you’re exactly right. We’ve got to do more deals.
We’ve just had an independent expert do a review for Trundle and Fairholme, our sort of traditionally flagship assets. It’s come up with some really new, good targets. And we’ve also got geomorphic AI that we’ve got a relationship, a new private AI group going through validating, generating further targets off the back of that work.
We’ve already pegged some further ground next to Fairholme. But I guess upon concluding that review process, which we’re very close to, it’ll be re-engaging with asset level partners looking to do more deals, as you say. But also, do we do some sole funded exploration across a few more of these projects, given the very strong cash position.
So a good story with plenty of catalysts to keep an eye out for. And a couple of events coming up this month. Next week, we’ve got Rick Ball’s conference in the US.
Rick and Jeff Cornerstone are financing last year. So it’s good to re-engage with a number of those investors. And then we’ve got Noosa Mining later on in the month.
So I’m getting on the front foot with a bit of marketing as we’ve got strong news flow as well.
Lel Smits: Fantastic. Enjoy those events and certainly a busy period for the company. Appreciate the update from Kincora Copper.
Sam Spring: Thanks for the opportunity, Lel.
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