Transcription of The Stock Network Interview with Kincora Copper (ASX:KCC, TSXV:KCC), President and CEO Sam Spring
Lel Smits: Kincora Copper has announced a major strategic milestone with the execution of a term sheet and receipt of a non-refundable US$1.5m option payment for the proposed divestment of its Mongolian subsidiaries. The staged transaction has an aggregate consideration of US$10m and supports Kincora’s strategy of unlocking value from non-core assets while increasing focus on its Australian copper-gold portfolio, where drilling is underway at Nevitae South and Condobolin. I’m joined today by President and CEO Sam Spring to discuss the significance of the proposed Mongolian divestment, ongoing drilling activity, and the company’s broader growth strategy.
Sam, welcome back to the Stock Network.
Sam Spring: Thank you for having us on, Lel.
Lel Smits: Now, Kincora has received a non-refundable US$1.5m option payment as part of a proposed US$10m transaction for its Mongolian subsidiaries.
What does this deal mean strategically and also how could the proceeds really support the future Australian growth initiatives for the company?
Sam Spring: It’s a great deal, Lel. I think we’ve unlocked really significant material value for Kincora shareholders for an asset that I don’t think is reflected in our market cap to date. That treasury really strengthens our balance sheet.
At the last quarter end, we already had AUD$7m in the bank. We’ve just received another AUD$2m. That’s getting up to AUD$9m and obviously AUD$14m of total consideration here, no tax as well.
It’s a very material transaction for us. It helps simplify the story. It helps recycle capital into our operations in New South Wales.
I think it really helps show there’s 8 projects in the portfolio, what the inherent value of a number of those projects sitting there is, which currently isn’t recognised in our valuation.
Lel Smits: Fantastic. Onto your Australian drilling project, Generator Momentum.
You do have drilling underway at Nevattaya South and also Condobolin, alongside more than AUD$100m in potential partner funding already secured across the broader portfolio. What are the key catalysts that investors really should be watching now across Kincora’s Australian assets over the coming quarters?
Sam Spring: Yeah, and as you say there, we’ve got drill bit turning at two projects, so there’ll be continual news flow there, but further deals, both in terms of harnessing value from other assets that are already within the portfolio and some of our really flagship projects like Trundle and Fairholme, but also are there other opportunities that we as a team think we have a competitive advantage to add value to? Geomorphic AI is a new relationship that we’ve announced only recently to help increase capacity and screen new opportunities. So I think there’s plenty of news flow up in the upcoming quarter.
Lel Smits: Brilliant. Sam, appreciate the update. Well done on that deal again and look forward to the next instalment.
Sam Spring: Fantastic. Thank you, Lel. Thank you.
Ends