NTL - New Talisman Mine - New board & Directors

[Paint it Black]

There was a question raised but Nader basically said NTL had no further comment from that already sent to the FMA which shareholders are aware of. He thought the case could take another 6-12 months to reach court. He said the rules regarding director disclosures were only instituted in NTL's employment conditions after the allegations came to light. He said no thought was given to Hill's standing down as they are only allegations and as CEO it would have been very disruptive.

[Brain]

At the AGM was there any talk of the upcoming FMA v Hill case? Im guessing its not really NTL as such, as its against Hill himself

none . Nader said that it was a civil matter. Nader also distanced himself from being able to remove Hill from the board.He said that is a decision for shareholders not other board members.

[Bluemanarc]

Bluemanarc. That post of yours this morning on another forum was excellent and imo "right on the money".

You might want to copy it over to this thread?

That post was removed for some reason on HC, so here it is here.

I hope otherwise but I suspect Jono will find out some nasty truths when he arrives.
My thinking:

1. The amount of work, and cost of that work, due to H&S and red tape and mine issues, to be able to run a mining operation of any scale, is miles beyond the resources and any capability that NTL has or could hope to achieve.

2. The actual gold per tone of rock is way below what he was hoping.

3. Any potential gold grades are simply out of reach (as per point 1)

4. The management has zero intention of mining down there, and has not had any intention, for several years, as they gradually realised point 1. But have hidden that from shareholders on the advice of Mat Hill, and that is why Nadar is very nervous.

5. The new acquisitions are the only chance of getting actual gold. Except, in reality they are only looking to find JORC resources, like buying lotto tickets, so they can continue on the prospecting nature of the business.

6. There is no mining capacity for NTL, anywhere, unless they find JV partners.

7. All the other mining operators in NZ think NTL and Mat are a joke, and will never work with them.

For Jono's sake, and any existing shareholders, I hope I am wrong.

But I think its going to be sobering time and reality check, sorry Jono.

NTL Price at posting: 0.2¢ Sentiment: Sell Disclosure: Not Held

• *Removed* this post has been removed from public view (30/09/2021 14:06:26) because of (Breach of HC TOU)

[Motley Crew]

I can’t think of any occasion before where there has been anywhere near this level of criticism of members of a board. A first for NTL. It was good to hear some questions from Mr Brown

Jonu has a huge task ahead of him. I think I recall Hill saying that it will take a further $12M or so to bring the mine to production and if that is the figure now it is more than likely (based on previous experience with NTL)to be more than that with no gaurentee of success.

From my point of view this is a bridge to far and it makes no sense to pour more money into this company.

NTL (Matt Hill) raised $12m in the 2016 3:1 issue at .005 (about 1.2b shares) - so the company might like to disclose where that $12m has got to (quite a lot into the CEO's pocket on his salary). Another $12m, and then another, and then another...........That's a big hole full of shareholder cash right there. Maybe they use the bit of cash left over after paying the CEO's salary to make the hole just a little bit deeper, so that the next round of shareholder cash raised disappears into the abyss never to be seen again

[Landyman]

Apart from finding a JV partner, I see another possibility, albeit may not be that palatable, but NTL could/will tip over if they cant find funding, therefore the larger shareholders like Mr Brown and Mr Upperton face losing their investments if it fails - we know they are both actively engaged in what is happening (ie the AGM participation, election to Director), so we know they arent just money bags who can afford to lose their dough.
I think Digger was the last of the big shareholders to bite the bullet and cash out, but given the SP, and the size of their holdings, further investment may be a good option to get long term return - $12m to get it operating someone said was what Hill said - based on past information we have received my conservative brain doubles that to make it realistic. Will be interesting times.
Do we know who the recent placement was made to yet?

For me, $12m reads as enough money to get Hill to retirement - sorry, my glass is half empty until he is gone.

[Weta]

Why hasn't NTL released to market that they welcome Jonu to the board? Is he unwelcome?

It was price sensitive information when they appointed & welcomed Ms Wyse & Mr Rabone.
http://nzx-prod-s7fsd7f98s.s3-websit...022/354571.pdf


Why is it not price sensitive this time?
NTL have updated their own website with the new information.
https://www.newtalismangoldmines.co....profile/board/


Maybe someone in Australia needs to give Matt & Charbel a cuddle & tell them that everything is going to be alright.

[Paint it Black]

Rather than waiting a full month it would be most useful to receive the September quarterly report before the rights closing on the 19 October to allow shareholders to make an assessment on whether to invest further. With the Board changes and vote of no confidence in the CEO and Chairman performance a clear road map which the new directors endorse needs to be presented describing how the new funds will be used and what additional funding is needed. I realise this is not easy with the many variables and some broad estimates will be required but something will be much better than nothing.

At the ASM the CEO did touch on where he sees the next steps and risks but we need to see this formally presented.

From what I heard the Broken Hills site and some equipment will be used for processing the stockpiled ore at Talisman under the 2 year Bulk Sampling permit to be triggered when the process testing is completed. In parallel with this the full mining permit at Talisman will be progressed. This will require a requirement to construct secondary egress route(s) to meet safety requirements which to me could be a major. The Dubbo face has significant stabilisation issues and the intention is to pick the 'low lying fruit' at Mystery. The cost involved to get Talisman into full production are likely to be more than $12 million. The intention is to further assess Broken Hills resource potential and likely obtain a JORC. Just how much mining is immediately allowed at Broken Hills under the existing permits needs to be confirmed (a condition of the acquisition).

An assessment of the cash flow requirements over the next 5 years needs to be supplied. How much is expected to be generated during the bulk sampling stage and how much more will be needed to fully mine Talisman and Broken Hills assuming the permits are in place. What ongoing positive cashflow can then be expected? How is CGL going to impact on this as a fully owned subsidiary of NTL?

This is a reasonable expectation for shareholders to obtain so as to make any further commitment. I would have much more confidence in this with John Upperton running his ruler over it. If the rights offer closing needs to be postponed in order to receive this first then that's OK. What do other posters think?

[nztx]

Back in April 2012 this appeared in NTL Announcements on NZX:

https://www.nzx.com/announcements/222227


PUBLIC CENSURE OF HERITAGE GOLD NZ LIMITED (HGD)


26/4/2012, 4:42 pm DISCPLIN
IN NZ MARKETS DISCIPLINARY TRIBUNAL
SUMMARY HEARING PROCEDURE NZMDT 2/12

UNDER the NZ Markets Disciplinary Tribunal Rules

IN THE MATTER OF breach of the NZSX Listing Rules 3.3.1(c) and
3.6.2(b)

BETWEEN NZX LIMITED

AND HERITAGE GOLD NZ LIMITED
Respondent


Interesting reading


And from the NZX Bible at the time states::

Relevant Rules

25. Rule 3.3.1(c) provides that:

“The composition of the Board shall include the following:

(c) the minimum number of Independent Directors shall be two or, if there are eight or more Directors, three or one-third (rounded down to the nearest whole number of Directors) of the total number of Directors whichever is greater.”

26. Rule 3.6.2 provides that:

“The Audit Committee shall:

(a) be comprised solely of Directors of the Issuer; and
(b) have a minimum of three members; and
(c) have a majority of members that are Independent Directors; and
(d) have at least one member with an accounting or financial background.”

Have things @ the NTL Boardroom improved since ?

[nztx]

Looking at a summary of the NTL filed Quarterly Cash Statements - here is where the Shareholder
Money raised & other Cash inflows have gone:


11 Years Totals (covering from 1 April 2010 to 31 March 2021)

Cash Inflow:

Net Proceeds - Shares & Options $ 16.26 m

Short term Loan (2012-13) $ 0.124 m

Receipts Product Sales / Debtors
(2015 & 2016) $ 0.124 m (Bulk Ore Sales ?)

Interest received $ 0.344 m

Other Operating Inflows $ 0.053 m

Sale Equity Investments $ 1.065 m (Broken Hill Prospecting AU ?)

Dividend received $ 0.001 m

Total Cash inflow $ 17.971 m



Cash Outflows:


Development Expenditure $ 9.539 m

Administration Expenditure $ 8.449 m

Equity Investments (2021) $ 0.100 m (Broken Hill Historic Gold ? )

Equity Investments (Other) $ 0.128 m

Other Fixed Assets (Net) $ 0.358 m

Net Loans Other Entities $ 0.298 m

Rounding $ 0.004 m


Total Cash Outflow $ 18.876 m


Net Cash Outflow ($ 0.905 m)


Opening Cash 1 Apr 2010 $ 2.054 m

Exchange Fluctuations ($ 0.038 m)


Closing Cash 31 Mar 2021 $ 1.111 m



In each of the years ended 31 March 2021, 2017, 2016, and 2011 to 2014 NTL's
reported Administration Expenditure exceeded Development Expenditure

Note: Some similar inflow & outflow categories have been offset (ie Loans other entities;
Fixed Assets purchases/realisations )



Summary of Net Proceeds from Cap Raises - Shares & Options:

For the Year ended 31 March -


2020 $ 3.626 m
2018 $ 1.926 m
2017 $ 6.373 m
2016 $ 0.590 m
2015 $ 1.392 m
2014 $ 0.927 m
2013 $ 1.421 m

Total Net Inflow from Cap Raises spread across the 11 Years = $ 16.255 million


Summary of Reported Development Cash Outflow by year ended 31 March -

2021 $ 0.632 m
2020 $ 1.439 m
2019 $ 2.487 m
2018 $ 1.575 m
2017 $ 0.561 m
2016 $ 0.376 m
2015 $ 0.684 m
2014 $ 0.599 m
2013 $ 0.514 m
2012 $ 0.368 m
2011 $ 0.303 m

Total Reported Expenditure $ 9.539 m


Summary of Reported Administration Cash Outflow by year ended 31 March -

2021 $ 0.660 m
2020 $ 0.888 m
2019 $ 0.903 m
2018 $ 1.304 m
2017 $ 0.844 m
2016 $ 0.722 m
2015 $ 0.563 m
2014 $ 0.726 m
2013 $ 0.738 m
2012 $ 0.560 m
2011 $ 0.541 m

Total Reported Expenditure $ 8.449 m


Source - NTL Quarterly Cashflow Reports issued to NZX, consolidated & summarised

[Weta]

From the SPP offer in 2017, the year NZTX's post shows 6M+ in capital received.


https://www.nzx.com/announcements/307227

I've exchanged the font colour to red for the things I believe still haven't been accomplished.

As outlined in the offer document the funds raised from the SPP will be used:

• To accelerate developments into the high grade JORC 2012 resources which in Dubbo alone doubled to 312,800oz gold equivalent at 21.98g/t; and increase production levels to the maximum allowable under the resource consent being 20,000 cubic metres per annum
• To investigate and develop multiple sampling operations on the Talisman permit area
• To install a pilot plant for underground concentration of ore which will reduce tonnage by 80% while increasing grade by a factor of approximately 4 times in concentrate form
• To gain access into level 9 and 10 and commence further extraction operations at deeps levels of the mine recently announced
• To accelerate completion of a bankable feasibility study
• To finalise toll treatment either in NZ or export of concentrate offshore
• Expand exploration programs aimed at building a +1m ounce minerals inventory
• To explore and implement initiatives to expedite activity, and potentially a greater interest in Rahu and other targeted areas such as Taukani Hill (where previous bonanza samples at surface were taken) and Dominion knoll which is highly prospective.
• To fund alternatives that may allow full mining at Talisman including alternate access to the orebody.