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Galiano Gold (GAU) - A Gold Turnaround Story (Transcript)

June 22 2020, 14:29 GMT+01:00

Galiano Gold (GAU)

  • TSX/NYSE: GAU
  • Shares Outstanding: 222M
  • Share price US$1.17 (22.06.2020)
  • Market Cap: US$259M

Galiano Gold (formerly Asanko Gold) is a mid-tier gold producer with an operating gold mine in Ghana: Asanko. The mine is owned and operated in a 50:50 JV with Gold Fields Limited (JSE, NYSE: GFI). It is large scale and started producing in 2016, but a recent tactical shift has been something of a game-changer.

Galiano Gold has gone from focussing on building the resource as large as possible to now placing an emphasis on sustainable cash flow and incremental growth through rapid fully-funded exploration. Galiano Gold is also focused on driving its free cash flow position. Shareholders will want to see how McCunn plans to add accretive value to the Galiano Gold mix.

What did you make of Green McCunn and Galiano Gold? Comment below and we will respond.

We Discuss:

  1. Company Overview
  2. The Foundation: Company's History, Development of the Business Plan and CEO's Background
  3. Present-Day Mentality: Significant Changes Made
  4. $65M Paid in Dividends: Will it Continue?
  5. Utilising the Free-Flowing Cash: Plans to Continue Value Growth
  6. Cost Cutting and Exploring: What Have They Got?
  7. Conversations with Institutional Shareholders: Any Pressure to Speed Up?
  8. Steady Progression and Ready for Opportunities
  9. Change of Management and Company Name: Why?
  10. Message to Investors: What Could You be Buying Into?

Matthew Gordon: Greg, how are you doing, Sir?

Greg McCunn: Doing very well, thank you. Thanks for having me.

Matthew Gordon: Fantastic. Well, thanks for joining us. You're another Vancouver, right? You're our third Vancouver person today. I should have moved there or something.

Greg McCunn: Yes, as you can see, we are sitting back in the office here today. We have just started slowly creeping back to some semblance to normality.

Matthew Gordon: Well, that's fantastic. Good. Well look, new story for our audience. We were meant to meet in London. Something came up, which meant that we couldn't travel. We won't mention it. We won’t mention the C word. Why don't you give us a 1-minute overview of the business and then we'll pick it up from there.

Greg McCunn: Absolutely. So, Galiano Gold. Greg McCunn, CEO, and we are a producing Gold mining company. We operate the Asanko Gold mine. It's located in Ghana in West Africa. So the mine is a 50:50 joint venture between ourselves and Gold Fields with Galiano as the operator, so we're paid a management fee to operate the joint venture, and the mine produced about 250,000oz Gold last year at an All in Sustaining Cost of around USD$1,100 p/oz. We are expecting more of the same this year and we can talk a little bit more about our guidance as we get into it. The mine has been in commercial production for about four years. We built this mine and put it into production back in 2016.

Shifting more to the corporate side of things. We do trade on both the Toronto stock exchange and the New York stock exchange under the ticker GAU. I think when we walked into this interview this morning, our market cap was about USD$250M. And we have a reasonable treasury here now. We've put together our balance sheet, which is being repaired, which I can also get into. I think over the last year, we're sitting with just about USD$54M in cash and no debt. So, in reasonably good shape as Galliano Inc.

Matthew Gordon: Fantastic. What a summary that's perfect summary. I couldn't have done better myself. We always like to kick off with new companies for this audience who are new to your story and get a sense of how you've gone about doing this. I mean first of all; we need to mention the name change in case people get confused. That's a recent occurrence. We'll come onto that and the reasons why, but give me a sense of what you originally set out to try and achieve, okay. So, you've been in production for 4-years, but there was a bit to it before that point. So, what was the team set out to do? What did you think you'd be able to build and indeed, were you able to stick to that plan?

Greg McCunn: Yes, absolutely. Well, maybe I could just give you just a little background on myself and sort of how I got here, and I think that that does help fill in some of the gaps as well. So, I'm a metallurgical engineer. I spent the first half of my career mostly working in technical and operational roles predominantly in base metals: in zinc, nickel and copper. Mostly with a big Canadian company here - Teck. It was Cominco and became Teck Cominco over the years and is now Teck both in Canada and in Australia. When I started working, my first corporate role was after I completed an MBA and I started working for Placer Dome, which is a big multinational Gold mining company here in Vancouver. It produced 5Moz Gold a year. I was working in corporate development for several years in the early 2000s until we were taken over by Barrick, which is the time when I sort of shifted in 2006 more to working in junior mining and that's where my career took a little bit of a different turn. I ended up, I find myself as the CFO, if you can believe it, which is an unusual role as a metallurgical engineer. But I find myself as the CFO of a junior mining company called Farallon and we raised a couple hundred million dollars. We built a mine in Mexico. We put that mine into production back in 2008. It was a high-grade underground VMs deposit. And we ended up selling that company to Nyrstar, the world's largest zinc producer, back in late 2010. And so, from there, I moved on to become the CFO of what is effectively now Galiano.

So, originally the company was called Keegan resources and we were an exploration stage company when I joined there back in early 2011, and we were able to put together a merger with an Australian company called PMI, which we then changed the name of the company to Asanko Gold. We built what's now the Asanko Goldmine. We raised several hundred million dollars to do that. Put the mine into production and started commercial production in Q1/16. And after a year of operating the mine, I actually left the company and I had an opportunity to become a CEO. And so, you know, one of the reasons that I became a CFO in the first place was I thought it would be a good pathway to eventually to be able to run a company. I took 10-years as a CFO being there, but in a couple of different companies, but eventually an opportunity presented itself. I was to run a small company called Alio, which you may know has been taken over by Argonaut Gold now - a Mexican-based Gold producer with an interesting project in Guerrero, at the same place that I had previously built a mine.

So, about a year ago, I was asked to come back to what was then still called Asanko as a CEO. I think if you about, you know, where we're headed and where we were seeing ourselves have gone over the last year, one of the reasons I came back was I saw an opportunity to really transform the company from a project-related mine building company into more of a sustainable business. And I think when you look back a year ago, when I came and I joined the company had been the mine at that time had been running for three years. If you look back over those three years, there were some challenging times, but the mine actually produced about $300M in EBITDA over that 3-year period. You know, there's a good margin at the Asanko Gold mine.

The problem was, and I certainly heard this from some of our key shareholders when I came back, was that, we had reinvested all of that USD$300M, and in fact, most of our treasury back into the ground. And so, the plans that were there in front of us as well, envisioned continuing that investment and that they were going to double the capacity of the processing plant; go from a 250,000oz producer to a 450,000oz producer. It required ore transportation infrastructure, you know, so for the foreseeable future in front of our investors, was that that was going to continue. And, you know, I had questions like, well, this isn't a real business, you know, you're just taking all the cashflow that's coming out of the mine and putting it back into the ground. When are we going to generate some return for our shareholders? And so, we really et about last year trying to change that narrative. And, you know, the company was in a difficult position because it adds very little in the way of treasury. You know, we'd run treasury balance down to below USD$10M, which is awfully difficult to run a mining company with less than a USD$10M buffer in the bank. And as well, we lacked a really credible direction where the mine was heading. We didn't have a credible life of mine plan. It didn't envision, you know, a substantial amount of capital. And so, I think over the last year, we've been able to rectify both of those things. And we really changed, I think, the narrative at the mine site last year, away from just producing ounces to producing cash. And so over the year, as we wound down our capital spending programs and we were able to start generating cashflow, certainly the rise in Gold price has helped in the last half of the year, to the point where the mine was able to actually distribute, make distributions to its shareholders to the joint venture. In Q4/19 last year and in Q1/20 this year, we distributed USD$65M, so USD$32.5M to Galiano's account. And more of that is coming in Q2/20. So, I think that has helped fix our balance sheet.

As I said, we're now sitting with just under USD$54M in cash and no debt. And during that period, we were also able to come up with a plan with our joint venture partner to develop the mine, making the most of the assets that we already have. So, we have this wonderful 5.5Mtpa processing facility. It treats ore from multiple pits on a wonderful land package in Ghana. You know, we've now produced a credible life of mine plan that doesn't envision a lot of capital spending. We've got a 10-year mine life here and we published that in February. And so, I think the basis has been reset and now it's onward and upward in 2020.

Matthew Gordon: I love that. I love that. So that MBA has paid for itself. Congratulations on that. No, but that's a very important because it's -

Greg McCunn: That’s an MBA strategy. You didn’t hear that from me.

Matthew Gordon: Exactly, exactly, but it's really important. I've had this conversation twice today already, where you've got companies who are looking to reinvest any cash they make straight back in the ground, or by acquisition or further OPEX spend, et cetera. And they're in the mining business. They're in the business of, you know, producing ounces. They're not in the business of making money, which all businesses should be in. All businesses. I don't care if you're a sandwich shop or make bicycles or you mine: you have got to make money, and people forget to do that. And that's a very common thread in a lot of conversations that we have with mining CEOs and investors in the natural resources space, where people forget that component. And I guess that's where the kind of lifestyle accusation actually gets thrown at some companies. And big producers also forget this. So, I think, if you don't mind, because you touched upon a few different threads there and I like that big segue from what the plans were to where you are, to the mentality. I think you said at the mine site, as well as make it pervasive throughout the organisation to understand that it's about making money. So, it's easy to say, Oh, we kind of changed a few things around, but what did you actually do? What actually changed from then to now because it doesn't happen overnight?

Greg McCunn: No, it doesn't. It requires some careful planning, really is what it boils down to you. And, you know, mining is a difficult business. It's a capital-intensive business. It is an industry where we don't control the price of your product. So, you know, that makes it awfully challenging through various cycles to be able to run a business successfully. So, you have to understand what's coming and plan for it. And I think that's something that over the last year, the biggest shift that we've made is, is a way from, again, just focusing on ounces and focusing on trying to generate cashflow at a reasonable Gold price, but bearing in mind that you are going to have to make investments. We do have a tailing storage facility that we need to raise every 2nd year. We do have pits that require pushbacks and access to ore or an open pit mine, but the same would be said for an underground mine where you need to keep up with your development. So, you know, the opposite mistake can often be made where you shift into harvest moon too quickly and you don't do enough capital spending. You don't do enough development work to be able to keep the, to really maximize the benefit of your assets in the ground, which is really, I think the objective of the mining company is to make money continuously, but realise that you are also trying to maximize the benefit of what's a once off natural resource, they have to use the most effective ways to generate profits for your shareholders.

Matthew Gordon: Okay. So, okay. I just love that. Okay. First of all, you've also distributed cash back to shareholders in the form of dividends – USD$65M - a not insignificant amount. You kind of set an expectation there. So, we'll see how that continues. Hopefully it does continue. Is that the plan?

Greg McCunn: You know, we're starting to build, rebuild our balance sheet now at the corporate level where we've received those distributions so that we can, you're absolutely right; starting to return capital to shareholders and shareholders in Galiano now. We started that process in November where we committed to buying back our own stock. So, we put about USD$3M back into the market, buying back about 3.5M shares over the last four months. So that's a meaningful start for the first time, to returning some of that capital to shareholders. And as we go forward, you know, as we become more comfortable with our plan, we've produced that life of mine plan in February, we absolutely adhered to that plan in the first quarter of this year and we had the best quarter that the mine has ever had. Record production and record low All in Sustaining Costs. And we're on track for another good quarter in Q2/20. So that'll be the second quarter that we delivered onto that plan. And I think it's very important that we keep doing that for the balance of the year so that we can look at a more sustainable way of returning capital to shareholders at the right time, like a sustainable dividend policy, for example.

Matthew Gordon: Okay. But you've now also created a problem for yourself, haven't you? Because you've got cash. What are you going to do with the cash? Because if it sits down and does nothing, it's just cash. So people have expectations about the, well, the optionality, which you've now given yourself by obviously restructuring the balance sheet, but sitting there on this kind of free flowing cash machine that you've got, but you can't, you know, $1 is worth $1. What are you going to do with that cash to create accretive value for shareholders going forward? Because you're a big company now. You are, what are you? USD$250 million, so, you know, you're up there, it gets harder and harder to grow. So, what's the plan?

Greg McCunn: Yes. So, I think at this stage, you know, we really, over the last year we had to fix the things that we talked about already before we could even contemplate what was next. And you know, now that we've got to that stage where we've got a credible plan in front of us, we've got really 2 initiatives. And I think the 1st is, you know, the plan that we put together, as I said, making the most of the assets that we have, is very credible. We can deliver on that plan. It's a decent life of mine plan, but we're really now focusing on this three to 5- year strategic business plan at the mine. And that's this planning that I talked about; to be able to consistently deliver free cash flow, you have to be thinking ahead more than just your annual budgeting cycle, and that's not something that we had actively in place. So, we've been really trying to formulate that 3 to 5-year plan, and we've got two ways we can make that plan better than what's in the public domain now. And the first is through driving our costs down. And as I said earlier, you know, mining is a business where we don't control the price of our product, so you have to be focused on costs. I think our business was set up to be a, as I said, a capital spending business where we were looking to be a half a million ounce a year producer. So, there's a lot of efficiencies that we can bring this year and we're targeting and reduction in the All in Sustaining Costs of USD$100/oz, which is meaningful. I know that's, to put it in perspective, that's USD$25M a year in operating cost savings.

And so there's a number of initiatives that are happening there that will involve us potentially reinvesting some capital in certain things, upgrades to some of our processing plants, et cetera, to try and bring those costs down, but predominantly it's around savings and how we handle materials. So, a very, again, very limited amount of capital required to capture these savings.

But the 2nd aspect we are going to reinvest the money in is in exploration. And I do think that when we're looking at a plan here with a 10-year mine life, I do sometimes get the comments of, ‘Why do we need to do a lot of exploration when we've got 10 years of my life in front of us? You know, why don't we just get a little further along the track?’ But the reality is the exploration we're talking about is not just to add years to the backend of the mine, now that will happen. Of course, when you find more ounces and develop more reserves, but it's really targeted at our three to 5-year business plan and to make it more profitable. So, to have better margins, to try and find out ounces that are more economical than the ones that we have in our mind plan now. And so, as some of our pits get more mature, you know, the ounces get deeper, the pushbacks required get bigger. It's not that they're not worth doing, and it's not that they're not profitable at $1,300 Gold, but we've got a tremendous land package here with the ability to find some more profitable ounces that are close to the mill, that we can get access to in the near term and fit into the mine plan, not at the end, but in 2022 and 2023. And again, just focusing on trying to make the business better, not trying to spend money just to produce nice drill results, but that'll be a nice consequence of it. And hopefully the market gets excited about it in a macro environment here, but it's really around making the business better.

Matthew Gordon: Okay. So, you've switched the business model into one that understands it's about making money. So great. I get that cutting costs - absolutely, of course, what you should be doing, but there's only so far you can go with that. Okay. There's a point at which the processes are in place and hopefully nothing goes wrong and you can maintain an AISC, which is, you know, whatever target, you're aiming for: USD$100. As I say, that's a big deal. It's a meaningful deal, but there's a point at which it is optimised and you, you know, there's no point in spending time optimising any further because it's just disproportionate returns. Right?

Second – exploration. You are sitting on a large land package. What do you know about what you've got at the moment? What's the potential that's in there? Have holes been drilled? Have you got data? What do you know?

Greg McCunn: Over the first three years of commercial production, the company really did very little in the way of what I would call meaningful exploration and drilling. But that's not to say that they didn't do a lot of work on prospectivity. And so combining the works of the many operators that have worked on this Gold belt over the years into a proper prospectivity analysis or a database of all the layers of soil, geochemistry, airborne geophysics, analysing all those layers of data collectively as one data package is something that we did spend a lot of time on to get ready, to be able to do exploration. And we just never had the balance sheet to commit to being able to do it. So now that we're there, we've got a commitment there for USD$10M for this year.

It is certainly success driven. If we have success, there's certainly the ability to divert more funds into that. If we see it's worthwhile. And we're really looking at three areas of exploration where we see tremendous potential to add to the business case here. First and foremost is over four years of mining, we've been averaging about 250,000oz a year including a depletion from the reserve base. And so that's 1Moz of reserves that are gone, and we've never really made any efforts to try and replace those reserves. So, first and foremost, in and around some of the pits where we're currently mining, we've already made the infrastructure investment. We already have roads. We already have trucks, jobs established at the pits, et cetera, very little, obviously we're mining there now, or we will be in 2021. On some of these, about half of our budget is going into drilling in and around those pits, and so we're very confident that we're going to have the ability to replace a depletion in our program.

Right now, we've got four drills turning. We've got a 38,000m drill program planned. The results are coming in right now. We're focused on in and around the pits where we're mining. And we believe that we can replace the depletion with the program that we've outlined for 2020 and 2021. So, call it roughly half a million ounces of additional reserves that would allow us to just keep running those pits, to just keep going, to keep mining there, and effectively it pushes out some of our higher-cost ounces in the middle of our mine life.

Matthew Gordon: That is interesting. Was there a another?

Greg McCunn: That was, and in second, we do have one of our main pit, which is where we've been mining ore for the last four years. It has been the main source of ore. It has gone through two phases of production. We've got a third phase to access there. There is about 600,000oz of reserves, but it does require a fairly substantial pushback. Again, worth doing at USD$1,300 Gold, which is where we stated our reserves. Certainly, very attractive at USD$1,700 Gold, but it does consume some of our cashflow over the period of, it's scheduled to start in late 2022, and it will take about a year and a half to get in there and really access those reserves. So, what we're targeting with our second half of our exploration program this year is we do have one particular trend, which we think can be a new deposit. It's located about six miles or 10 kilometres south of the processing plant. It's called Miradani-Tontokrom It's a ground that we acquired from Anglo a few years ago. It's about a 3km long, 2-mile long trend of mineralization. We've got some drill holes into the Tontokrom area in particular. You know, we believe that has a meaningful a capability to defer and implant there for some period of time, which is again, maybe even replace that 600,000oz or push that 600,000oz of reserves.

So really, as I said, we're looking at exploration on those two prongs of not necessarily elongating the mine life; it will naturally do that but making that 3 to 5-year business plan better. By better, I mean, more active. And then finally, you know, with this land package, there's 21,000 hectares of ground here. We own the majority of the Asankrangwa Gold belt. That's where the name Asanko Goldmine comes from, the shortened version of that. And you know, it has largely been unexplored.

We do have these targets that we're working on this year, that we've delineated, but we've also got some more green field potential to, you know, what's going to be our next, as you know, our mine is anchored by 2 main deposits: Nkran in the south and the Esaase to the north of where our 2.4Moz of reserves sit. What's finding the next out of the Esaase or the next Nkran? So, we are doing a bit of background work on that this year. It's not expensive work, but it's more groundwork to prepare for an eventual drill program. So, I think to answer your question, we're going to be mining Gold here for a long time.

Matthew Gordon: Okay. I guess it comes back to, cash is a wonderful thing. It's giving you lots of optionality. I'm going to ask the question; I think I know the answer, but do you feel under any pressure whatsoever from any of the institutional shareholders, which you, it seems to be somewhere in the reason of about 60% of your shareholder register, are they asking you to move quickly? Because exploration is obviously, it's cheap, but it's slow. I appreciate you are sitting on a large land bank. Do they want you to go and raise some more money, do some M&A and get some scale to what you're doing? There's a cost to that. And I think I know the answer, but what's the conversation with institutions been like?

Greg McCunn: Yes. So, first on the exploration front at the Asanko Gold mine, I think there always is, you know, I think there could be a case for putting more money into exploration, particularly given the amount of cash that the asset is generating. Right now we've got a meaningful program where we've gone from essentially doing no drilling for a period of five or six years while we built the mine and got into production, to ramping that up to what's quite a lot of activity, you know, there's a significant amount of drill core coming out here, four ore drill rigs turning full time with a fifth one arriving. That's a big step up, and we want to make sure that we, you know, make them make, create the most value that we can from those exploration results. Might we ramp it up further? I suspect it's probably possible, but I think that'll be success based. So, let's see how this first round turns out. We're starting to get some nice results from some of the drilling already. We'll be publishing those to the market here certainly in Q3, and there could be a good business case for doing more exploration. You are right.

Now, when we look at what other things might Galiano do, which is, I think where you're getting to with all of this, is certainly if we go back a year, one of the reasons coming back here was that I did see that we have the potential to create a sustainable business. And by sustainable business, I do believe that in mining, you do have to have more than one asset running. You know, we talked about, the push back at the Nkran pit, the capital reinvestment, we talked about mining being a capital-intensive business, whether it's open pit or underground, there's cycles of development capital that need to be spent on operations. And if you only have one mind and you mistime that cycle that coincides with a rise in Gold price, where you are actually putting all the money back into the ground, that can be challenging.

So, you can see that the case to have two or three businesses that are running, where you can plan those cycles properly, you can get generating sustainable cash flow across all of the metal price cycles that are reasonable. And that's where you can have a sustainable dividend returning capital to shareholders. So, you know, the intention certainly of coming back here was to do that; to create a sustainable business. And we don't have to be in a hurry to do it. We're certainly not under any pressure from our institutional shareholders to go and run out and do something. But I think the way we look at M&A is perhaps a bit different than maybe when I went to work at Placer Dom in the early 2000s where, you know, getting bigger for the sake of getting bigger, it was very important because companies traded at 2 x NAV, no one really ever cared whether the mine generated cashflow or not, they just looked to how fast can you build NAV? You know, there was incentive to just continue to do deals, and that's certainly not the case. And it won't be the case here. From our perspective, any acquisition that we look at doing, whether it's a merger, whether it's acquiring a producing asset from a major would only get done if it makes our business better. So that's the rationale that we use when we're trying to look at these things.

Matthew Gordon: Okay. Well, I like the fact that there is a rationale to all of this because sometimes people just, you know, wander from one point to the next, hoping just to survive. I appreciate that you kind of laid out the plan there. I think from what you're saying, there's no kind of big moves. This is about getting what you've got done, right? Not going crazy with the money that you have got. Again, we see that: when people get money and then they feel they've got to go and do something big. But that doesn't sound like it's your modus operandi.

Greg McCunn: It certainly doesn't have to be. I think that's the point, you know. I think you'll have to be, in this industry, you know, there are not a lot of opportunities that are available so I think you have to be continuously working on looking at opportunities and sometimes when the opportunity presents itself, you need to be ready. And so that's more our focus; continually evaluating things, looking at things that might make sense to build out to strengthen our business. And if the opportunity presented itself, I'd certainly think that we'd like to take advantage of that. And I'm thinking we've got the capability now, and we're, you know, we're positioned with a bit of a refreshed management, a refreshed board of directors, where we've changed out some of our key directors, we've got a team here who's looking to build a sustainable business. And so, I think when those opportunities come, and we know they will, we'll certainly be ready.

Matthew Gordon: That's interesting. Yes. I had noticed that. Sort of getting a team that's fit for purpose was important. So, the name change - changing the management team. Are you trying to build a company in your own image? I mean, what's the thought process here?

Greg McCunn: So the name change, I think, is reflective of predominantly two things: firstly, there is a refreshed board in management here and it is nice to turn the page and it, you know, we think it reflects the change in philosophy away from the messaging of we're going to continue to invest capital and build the Asanko Gold mine into something, an enormous entity to an entity that's focused on running a sustainable business and generating cash flow. And that certainly is a shift, you know, changing the name helps change, turn that page in that history. And there's also an element here though of, we rightly or wrongly named the mine the Asanko Goldmine. As I said, the mine is a 50:50 joint venture now between Gold Fields and Galiano. When the company was named Asanko Gold, and you're trying to explain to new shareholders that yes, we operate the Asanko Goldmine, but that's a joint venture and the Asanko Gold Inc is separate, that messaging was sometimes difficult to convey. So, I think this also tidies up that story quite nicely so that if we eventually have more than one asset, you know, it's clear that Galiano is a corporate entity. We operate the Asanko Goldmine in Ghana, and that's a joint venture between ourselves and Gold Fields. So, it also tidies that up nicely.

Matthew Gordon: Okay. And again, so what would you say to people looking at this project, and your existing shareholders, I guess they've got to be pleased. You had a bit of a dip, like everyone else, in March time, but you're starting a bit of growth in the share price, but what type of company are people buying into here? You are dividend paying – great. Unusual. But without the kind of growth story to it, you know, the speed at which the growth story actually happens. Do you think the shares can continue, or is it just going to be a steady, steady growth or flatlining going forward? Where does the excitement come from?

Greg McCunn:  Yes, the excitement in terms of the equity valuation as it sits now, I think that there's still plenty of room to go here. I mean, this is a very strong macro environment for Gold. I don't think Galiano has fully rerated into that macro environment. I think there were some, you know, the main pushback that we can get beyond, as you say, our institutional shareholder base, you know, if you look at 4 or 5 names, they control 60% of the VA issued in outstanding shares. Those are very stable shareholdings, good supportive shareholders who have been long supporters of the business and really liked the direction we're taking the company. But how do we get those new names into the business? How do we create an exciting story for what's coming next? And that's, I think, still has some room to run, quite a bit of room, in fact.

And I do think that delivering is something that the company didn't do well over the first three years of commercial production. And I think, you know, we're slowly recovering from that. Now we have started to see volumes increase on both New York and in Toronto. We started to see a lot more investor interest in the story. And we are still seeing a lot of wait and see, you know; you said you were going to produce a life of mine plan that shows low capital and 10-years of mine life. Let's see that. Okay. We delivered that in February. And that was only a few months ago. You said you were going to produce this year between 225,000oz and 245,000oz of Gold at USD$1,000oz to USD$1,100oz let's see you do that for 2020.

And so, we've had a great first quarter, we're having another good second quarter. So, I think there's an element of steady-steady here; we'll start to attract some new investment and there will be some excitement around just doing what we said we were going to do. I think in this market, some exciting exploration drill results are not going to hurt. Let's face it. That's not the reason we're doing it but sprinkling on some really nice exploration results on top of what is a story of a mine and delivering into its guidance, I think will be powerful for 2020.

Matthew Gordon: Okay, Greg. Thank you so much for running through that story. I like that, it's not quite slow and steady, I think that would be a bit unfair, but there is kind of a consistent and robustness to the plan. We like the free-cash flows, obviously, very attractive for anyone. And we look forward to maybe catching up with you and understanding when you start delivering more of these targets that you're aiming for. And hopefully you can accelerate the exploration plan somewhat.

Greg McCunn: Absolutely. Well, let's look forward to that success in Q3/20. And yes, thank you very much for having me. I think it's been a great introduction and I appreciate the time.

Company Website: https://asanko.com/

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