Today's session will be presented by Predictive Discovery Managing Director Andrew Pardey and Robex Resources Managing Director Matthew Wilcox, who will walk through the transaction highlights, strategic rationale, and expected benefits for shareholders and stakeholders across both companies. Please feel free to submit your questions throughout the webinar using the Q&A function located at the bottom of your screen. At the end of the presentation, time permitting, the team will address as many of your questions as possible, and where appropriate, we'll group similar questions together. If your question isn't addressed during the session, please follow up using the contact details provided in today's announcement. Before we get started, I'd like to remind you that today's webinar is being recorded. Andrew, over to you.
Hey, thank you. Good morning, afternoon, evening, depending on what time zone you're in, ladies and gentlemen. Thank you for joining us on this webcast. We're Matthew Wilcox, CEO of Robex Resources , and I am delighted to present to you the creation of what will become Guinea's largest gold producer and the next African mid-tier producer through a proposed merger of Predictive Discovery and Robex Resources. Now, moving on to slides two and three, just quickly, the disclaimers for the sake of expediency. Please do read the disclaimer in your own time if you haven't read it already, outlining that there are some forward-looking statements in this presentation. Now, moving on to slide four, the transaction highlights. Combining Predictive Discovery and Robex Resources.
will create one of West Africa's largest pure gold mining companies with a pro forma resource base of over 9 million oz, annualized gold production of over 400,000 oz per annum by 2029, a very competitive operating cost, leading to very strong cash flow generation, and a significant portfolio of exploration assets, which all have exceptional growth potential. Not only will the merger enhance the size and scale, but it will significantly de-risk the required financing for the construction of the Bankan Gold Project. We'll discuss this in more detail later in the presentation. The merger brings together complementary expertise at both board and management levels, forming a team with a strong track record of gold production execution across Guinea, Egypt, Côte d'Ivoire, and Burkina Faso.
Collectively, the team is well positioned to deliver construction of the Kiniero and advance the development of the Bankan Gold Project, drawing on the experience from leading companies, including AngloGold Ashanti, Centamin, West African Resources, Tietto Minerals, and Nordgold. With Predictive Discovery and Robex Resources ' principal operations located in Guinea, the merger will create the largest producer of gold in the country and also simplify the relationship with the key local and national stakeholders. In addition to this streamlining, the merged company will be able to extract a range of synergies across the operations.
The merged company will have a bigger and better capital market profile with an initial combined market capitalization of over AUD 2.3 billion Australian dollars at today's respective share prices, a primary listing on the ASX and a secondary listing on the TSX Venture Exchange, and a shareholder register with some of the highest quality global institutional investors. We remain highly confident that the enlarged entity will benefit from future inclusion into the ASX 200 and other international passive market indices. This strategic alignment is expected to support a strong share price re-rate in the near term, particularly as Kiniero progresses through construction and into production, and Bankan advances towards development. The combined entity's diversified asset base, operational depth, and funding optionality position it as a compelling investment proposition for global mining investors. Now, moving on to slide five for transaction summary.
The merger will be completed through an all-share transaction via a plan of arrangement under the regulation of the Business Corporations Act in Quebec. The large company will be 51% owned by Predictive Discovery shareholders and 49% by Robex Resources shareholders, with Robex shareholders receiving AUD 8.667 Predictive Discovery shares for each Robex share. The merger requires shareholder approval from 66% and 2/3 of the votes cast by Robex shareholders at Robex's general meeting scheduled for later in this year, as well as approval from the Superior Court of Quebec and the usual regulatory exchange and court approvals. The merger has the support of the Robex board and management and its largest shareholders, namely the Cohen family and Eglinton family, which together account for approximately 25% of Robex's shareholder register.
The board of the merged company will be chaired by myself as Non-Executive Chairman, with Matthew Wilcox as CEO and Managing Director. Details of the enlarged board will be covered later in the presentation, but it will consist of seven directors, four from Predictive Discovery Limited and three from Robex Resources . Beyond the shareholder vote for Robex shareholders later this year, the merger is targeted for completion in December 2025 or early next year. As mentioned previously, the principal listing will be on the ASX with a secondary listing on the TSX Venture Exchange of the Toronto Stock Exchange. Moving on to slide seven, building Guinea's leading gold producer. Today's announcement creates Africa's next mid-tier gold producer and what will become the largest gold producer in Guinea.
The merger consolidates two significant gold mines in the Siguiri Basin, which remains one of the least explored proven gold addresses in Africa. With four mines currently in production, Kiniero and Bankan will create a hub within this new gold district, effectively doubling Guinea's commercial gold production from the basin. The neighboring operations have complementary production timetables, with Kiniero rapidly advancing through construction and will be pouring gold in December of this year, and Bankan scheduled to commence production in the second half of 2028. The combination of the merged co will add significant momentum to Guinea's burgeoning gold industry and its reputation more broadly as a growing global mining jurisdiction.
Once both Kiniero and Bankan are in production, the company will be a multi-asset mid-tier producer producing over 400,000 oz of gold by 2029, with the Kiniero operation having a life of mine of nine years and Bankan just over 12 years. More details on each mine in Guinea, as well as Robex's Nampala Mine in Mali, which is in production, will be covered shortly. The combined all-in sustaining costs at AUD 1,079 per oz places this within the lowest quartile of African producers. The Kiniero mine is an open pit operation with a life of mine of nine years and will be producing gold by the end of this year at an average production of around 140,000 oz per annum. It's a straightforward open pit operation.
Bankan, which is both an open pit and underground operation, has a 12-year life of mine and will produce an average of almost 250,000 oz of gold with an all-in sustaining cost of AUD 1,057 per oz. Importantly, this will also consolidate a large portion of the southwest margin of the Siguiri Basin, allowing a coordinated approach to the significant exploration upside that exists across the permits of both companies. Slide number eight, pathway to becoming one of West Africa's leading gold producers. As you can see on the slide, the combined entity's mineral resources, production profile, and cost basis are highly compelling, with a total mineral resource of 9.5 million oz, annual production in excess of 350,000 oz per annum, all-in sustaining costs of AUD 1,070 an ounce. The company is positioned to become a producer of note in West Africa.
Moving on to slide nine, establishing a tier one West African producer. In terms of a broader global comparison on a mine by mine basis, the combined entity sits firmly in the bottom right quartile, characterized by long life assets, low production costs. The positioning is not only a strong indicator of the operational quality, but also a critical factor in ensuring the sustainability and resilience of the business across commodity cycles. With this profile, the company stands out among global peers as a disciplined, high-margin producer with the capacity to generate consistent returns and attract long-term institutional interest. Moving on to slide number 10, de-risk funding at Bankan by leveraging the merged co. One of the key strengths of this transaction is the funding flexibility it provides for the merged co.
There's already cash flow from Robex's Nampala Gold Mine in Mali, which provides a strong foundation as it is a small and very highly cash-generative operation. Kiniero is expected to contribute approximately AUD 160 million in 2026, based on a spot price of AUD 2,431 an ounce. Obviously, the gold price is much higher than that today. There's also the in-money options and warrants, which is bringing additional cash into the operation as well. Together, these sources provide access to an excess of AUD 200 million in unlevered cash. This capital can be directed towards Bankan's DFS capital estimate of AUD 463 million. The ability to fund Bankan using internal cash flows and financial instruments gives the merged co greater flexibility in exploring additional financing options. Slide number 11, moving on to that, the potential for meaningful corporate and operational optimizations.
Not only will the merged co benefit from being a larger company, our respective shareholders will benefit from the considerable synergies created. These can include as examples the skills developed during the construction of Kiniero will prove invaluable for the subsequent construction of Bankan. We double the acreage overnight, taking a 55 km strike length from north to south and opening up the contact between the Birimian and Archean Shields, all under one roof. We're both extremely excited about combining our exploration campaigns and budgets and prioritizing our efforts to rapidly grow what is already a considerable gold inventory. The operating of two mines, which are in close proximity, brings significant cost savings, centralized maintenance programs, optimizing spares and equipment, and other resources critical to the smooth running of such a large operation.
Procurement also benefits from economies of scale, particularly when purchasing equipment, consumables, technology, as well as building a stronger key supplier relationship. Together coordinating our environmental discipline, we'll have more control over the impact we make from our operations, as well as protecting the environment, coordinated engagement with local communities, and maximizing the local content across all of our operations in Guinea. From this, we are very confident that we are building a tier one gold mining hub, reducing corporate overheads and attracting additional business to operate within the Siguiri Basin, as well as developing significant infrastructure which will provide local communities with quality access opportunities, which will have a hugely positive impact on industries in and around the region beyond mining. Moving on to slide number 12, right skill set to drive the value creation.
The combined leadership teams possess a proven in-country track record and the skill set to develop and operate the combined portfolio. As mentioned earlier, this is a merger of equals, and the board composition reflects this, with four directors from Predictive Discovery and three from Robex Resources . All of the directors bring significant skills and knowledge to all of the key aspects of merge c o's future growth, from exploration through permitting, financing, construction, and operation, with significant capital experience navigating multiple international stock exchanges. This extensive experience has been shaped building mid-tier and large-cap miners with strong operational histories in Africa. Moving on to slide number 13, enhanced capital markets relevance. With the scale of operations comes the advantages of scale from a capital market perspective.
Ahead of any potential re-rating, a merger may bring to both sets of shareholders will have a market valuation of approximately AUD 1.5 billion. We believe at this valuation, a combination of market caps of both companies has significant upside, particularly in narrowing the substantial discounts to immediate peers, as reflected in MPV ratios, production growth, and cash flow forecasts. The pro forma valuation comfortably puts the merged company eligible for inclusion in multiple indices, as I mentioned earlier. Moving on to slide number 14, the operating jurisdiction. Guinea is an established gold-producing country, hosting multiple world-class projects, and both Matt and myself have both had previous experience working in Guinea. Guinea is also home to the largest mine development project in the world, the Simandou Iron Ore Project. It's a global leader in bauxite, and mining contributes significantly to the GDP of the country.
Benefits from Guinea are further rapid growth of the gold hub in the Siguiri Basin. The combination will deliver substantial and sustainable tax revenues to the country, further supporting local content and community, and moves Guinea into being a top gold producer in Africa. With that, I'll hand over to Matt, who will talk about the merged company portfolio overview. Thank you.
Thanks very much, Andrew. Yeah, in terms of the cover of Kiniero first, we are literally less than three months out from first gold. Almost all of our equipment is on site. Everything's being built. We've got a land package that's currently sitting at about 2.2 million indicated in resource ounces and will grow substantially, I think, over the next eight, ten months as we continue to drill. We're completely constrained by our own drilling at the moment. We've got a financial model that was done at a AUD 2,320 gold price, which is a consensus gold price at that point. You plug in spot today, and it's well north of $1 billion U.S. and an IRR of, yeah, somewhere around 100%. It pays itself off in less than six months.
We've got annualized gold production of 139,000 oz over nine years' life and approximately 150,000 oz a year for the first five years of that life. I think we'll definitely fill in that skinny tail with increased drilling, and we'll increase that mine life. We'll be on the nine-year range. That's our production construction progress at the moment. Those photos are about a month old, but we've literally finished civils where the SAG mill you see there is pretty much complete now. The ring gear has been installed. The ball mills are in, the shell and the heads are together now, so it's moving along. The CIL is more or less functionally complete with just agitators and screens to install, and the power station is on site. All the generators are on site, and we're moving towards our first power production sometime probably late November.
It really is a hard push towards the end of construction, but we're confident, you know, we're a team that's done it many, many times before, and we're confident we'll get it over the line and pour first gold bars this year. As I said, you can see there between Kiniero and Mansounia, there's sort of a gray bit. That's an inferred pattern we drilled earlier this year, and it all pulled up and inferred. We've actually fenced out to the east. We've gone to the south, and we've got a dent, and it extends in all directions. It's completely open. It'll end up being a Kiniero-Mansounia sort of super pit that's 3+ km long and probably 500 m wide, just the ore boating across the pit. It's oxidized to more than 90 m, and it is just a super great pit to start up with.
You know, it's one-to-one strip ratio, one gram a ton, all in oxide, and about six or seven years of production just out of that pit with the current depth and current extent of the drilling site. It's going to get better. Underneath the SGA gene complex, there's real potential. Semaphore mined that area from at about three and a half grams a ton over 10 years, just in oxide only. Underneath that pit, the strike extends. We're putting a few diamond holes underneath at the moment, and hopefully we can hit that structure a few times. It has the real potential to prove up an underground resource underneath the SGA gene complex as well. Between Bankan and us, looking at the length of that strike and just the sheer prospectivity in the zone is massive.
Everywhere they pretty much put a drill bit in Bankan, they found gold, and the NEB pit is really just one of the most exciting sort of structures I've ever seen in gold mining. It makes it very, very easy to mine. It's a big, thick reef of gold, and it's consistent on the angle, and it pretty much sits on the geotechnical angle of the pit. It'll be a pit where half the pit is ore and half the pit is waste, and it's going to make mining really easy with all ore blasts and all waste blasts through the line for the mine. There's just a tremendous oxide across Bankan. I'm sure there's going to be a lot more found across that in that zone.
Everywhere we've looked, we've found gold, and I'm sure Bankan's been the same, with Argo being a great little prospectivity target as well, and already an established resource on it. It's just going to get better with time. Again, talk about Bankan. I don't think there's a better undeveloped deposit anywhere in West Africa at the moment, and you can see some of the drill results in this slide that indicate that. NEB is really the main target, but there's gold everywhere. There's prospectivity all over the pit, and I'm sure there's a lot more to find over the last things. Between the two assets now, we've got over 50 km of continuous strike, and it's just going to be an enormous gold area for what I think will probably be the next 20 years.
Moving on to Nampala, and we don't talk about Mali very much, but it is a small little operation, but it's been pretty mighty in the cash flow that it generates. We've been sort of producing gold since 2017 in Nampala, and it's, you know, it's really performed in a way I probably wouldn't say the 50,000 oz mine could perform in Mali, but it's an all-oxide mine. You know, it's sort of averaged somewhere around 0.9 g per ton, and it's consistently made free cash over the life of the mine, even with the latest, you know, I guess troubles that there have been in Mali.
It continues to generate cash, and it continues to generate significant cash in that it's producing still somewhere between AUD 2 million or AUD 3 million of cash every month, and we've been getting that money out of Mali every month, year-on- year, month-on- month. It's still certainly bundles all our corporate costs and other expenses, and I think we've got the opportunity to extend the mine life relatively simply for another couple of years, and we'll certainly do that, and we'll probably see this generating cash well into the end of 2028 when we're in production in Bankan. I'll just hand this one back to Andrew. You can finish off the slide.
All right, thank you very much, Matt. Look, this transaction is going to be highly accretive for all the shareholders. With a nil-premium merger with a no-cash consideration, we offer both sets of shareholders clear upside to the significant growth profile of a merged co, which will be created through creating a mid-tier producer with over 400,000 oz per annum from two long-life low-cost mines, building on the foundations of an asset base of over 9 million oz in resource, with, as Matt talked about, significant upside, which will see this becoming a multi-generational company. Bankan CapEx will largely be de-risked as there remains significant leverage to Kiniero's cash flows, as well as the additional cash coming in through the warrants and options. A combined leadership team that possesses a proven in-country track record and skill set to develop and operate a combined portfolio.
A size and profile of being a mid-tier mining group with significant liquidity and multiple listings will ensure improved access to capital to fund further growth, and the combination will drive economic growth in Guinea, strengthen local skills, enhance critical infrastructure and services, and build lasting local partnerships. It is well on the pathway to becoming one of West Africa's leading gold producers. Matt and I are certainly looking forward to this merged co closing it all out and delivering upon these things to make the merged co a significant mid-tier producer. With that, I'd like to hand back to the Moderator, please. Thank you.
Thanks, Andrew. At the moment, we don't have any questions at this time. Hold on. As I've said, that one has just popped in. As a new combined board, could you please talk us through your anticipated steps in the timeline between now and approving the Bancan FID?
I'll take that.
Well, look.
You go for it, Andrew.
You can go for it, Matt.
Okay, look, obviously we're still looking for permitting and things, and permitting in Bankan is going to be a major milestone for us as we move forward. Yeah, obviously the FID, I think, will be based on that. I think we're going to have significant cash at the end of the construction of Kiniero. We should have over AUD 100 million in cash, especially for the warrants that have been issued now, and about AUD 100 million in debt. We should have money to start the project. I mean, the FID is going to be purely driven by permitting. I'm sure between the teams, we can work out a way to accelerate the schedule at some point. We are highly dependent on where we're looking for in terms of government approvals. We've got an election on the 28th of December.
My feeling is the president, Mamady Doumbouya, is going to use Bankan as a bit of an election sweep now to say he's issuing permits right before the election kicks off. I'm quietly confident we're going to get the permit either this year or very early next year. Sorry.
Yeah, that's good.
Next one is Bob. Yeah, both companies are going to.
With so many shares, once the merger is completed, is there a plan to do a share consolidation in the future?
Share consolidations will obviously be a topic for the board to discuss and review. Share consolidations can be beneficial, but there's really got to be a catalyst for doing the consolidation that will drive it. It will be on the board's agenda.
Thank you, Andrew. As far as questions go, that's all we have for now. I'll just pass back to you for some closing comments before we wrap up the session.
Okay, just to answer Bob's question there, both companies will continue to trade until approval. I believe the approval process takes, like, you know, there'll be a halt in Robex shares of about three to five days while it merges with Predictive after all the approvals are done. That's all.
Perfect. Thank you everyone for joining Matt and I on this call today. We're certainly very, very excited about the merged co and what it's going to grow the company into. We look forward to completing the transaction and getting on and delivering value for all our shareholders and stakeholders. With that, I will hand over and say good night. Thank you.