Interview with Manuka Resources Limited
Manuka Resources Executive Chairman Dennis Karp on the potential in New Zealand after the change of government
time to read: 2 minutes | The interview was conducted by Mario Hose on January 31st, 2024 in Sydney, NSW (AU).
Executive Chairman | Manuka Resources Limited
201-207 Kent Street, 2000 Sydney, NSW (AU)
Table of contents:
Change of government in New Zealand
news|financial: "A change of government in New Zealand has ended the slump in Manuka Resources shares, which have been moving upwards for several weeks and delighting investors. Is it still worth getting in?"
Yes definitely – TTR’s offshore vanadium project approval is embedded in the new New Zealand government’s coalition agreements announced on 24 November 2023. While the formal “Fast Track" legislation for the project approval is still to follow, the market has risen on the back of the government’s Resources Minister’s interviews. Furthermore, TTR previously had an offer to purchase the Company at a value which equated to 0.80 AUD/share (10x current share price).
Contact with government
news|financial: "Are you personally in contact with representatives of the new government?"
Alan Eggers who is an executive director of Manuka Resources and also the chair of TTR, is in direct contact with the Minister and his most senior staff and advisers.
Potential of TTR project
news|financial: "What potential does the TTR project with its titanium and vanadium deposits have for Manuka Resources?"
This is a potential game changer for Manuka. The project carries an NPV10 of USD 1.8 billion. This is substantially many multiples in excess of our existing market cap.
Benefits for New Zealand
news|financial: "It seems that you will also bring benefits to the population of New Zealand. What exactly are they and are there any disadvantages, such as environmental issues?"
"[...] We will trigger indirect creation of 1,665 new jobs nationwide, while directly employing 300 staff - 270 operational and 30 administrative. [...]" Dennis Karp, Executive Chairman, Manuka Resources Limited
The project when in full production will generate annual royalties of NZD 70 million for the New Zealand government and an additional NZD 180 million in corporate taxes per year and around US 600 million (NZD 960 million) foreign exchange earnings per annum. It is a project of national significance to New Zealand. We will trigger indirect creation of 1,665 new jobs nationwide, while directly employing 300 staff - 270 operational and 30 administrative. The 2017 EPA approval deemed there to be full rehabilitation from our mining process within 2 years, with essentially no adverse environmental effects on the marine flora, fauna and ecologies offshore Taranaki.
news|financial: "The gold price is at a high level and Manuka Resources also has gold in its portfolio. What significance will this project have in the future?"
Manuka has recently completed a sonic drill program on its Mt Boppy dumps and tails. The results of this program are imminent and due out early February at which stage a new mine plan will be developed for ongoing gold production. Together with this, there is a planned drill program beneath the existing Mt Boppy pit. We see gold playing a significant role in Manuka’s future, and it is worth noting that Mt Boppy was previously one of the richest gold mines in NSW Australia. The previous production was 500,000 ounces gold at 15g/t Au.
news|financial: "Thank you very much for talking to us."