Gold: Developer / Explorer

Transcription

1 GCY.asx Speculative Buy Gold: Developer / Explorer Gascoyne Resources Ltd (GCY) GASCOYNE RESOURCES LTD (GCY) Dalgaranga on track for first gold in May 2018 The construction of the Dalgaranga gold project in WA remains ahead of schedule and within budget, with first gold production on track for May Our recent visit to Dalgaranga reaffirmed the strong development progress, with the processing plant on schedule for wet ore commissioning within two months and open pit mining well underway (started early March 2018). In addition to the well advanced construction, Dalgaranga has strong near mine and regional exploration potential, with regional drilling currently underway at the Greencock prospect, located to the north of Gilbeys. GCY controls over 90% of the Dalgaranga Greenstone Belt, with multiple gold targets to be tested over the coming months. Mine life growth is one of the key objectives. In our opinion GCY remains one of the best value AUD gold developers on the ASX and we see opportunities for production growth and mine life extensions at Dalgaranga. In addition, Glenburgh has the potential to become the second development project, providing organic growth towards 200kozpa from late CY20. We maintain our Speculative Buy recommendation with a price target of $0.89/s. Our GCY NAV is $0.78/s, and spot NAV is $0.84/s. First gold will be a major milestone for the Company and we envisage share price appreciation as the project continues to be de-risked into production. Contractors for construction doing a good job, ore on the ROM The new 2.5Mtpa conventional CIL plant is now +90% complete with commissioning and first gold production one month ahead of schedule (for May). GR Engineering (GNG) are building the plant under an EPC contract, on a GMP basis of ~A$66.5M. Total pre-production capex for the project is ~A$98M, funded through cash reserves and debt financing for A$60M. All the long lead items are on site, with the crusher and SAG mill both in the final stages of installation. The installation of the CIL tanks and ore transfer bin has been completed, and electrical cabling is well advanced. The airstrip at Dalgaranga, located next to the accommodation village is now fully operational and allows for regular flights from Perth. The construction of the gas-fired power station (Zenith) and LNG storage (EVOL) are nearing completion, with the gas generators in transit to site for install during April. The first gas delivery is scheduled for mid-april, in time for mill commissioning. NRW Holdings (NRW) are the mining contractors for the open pit operation, and commenced work in March 2018 (as planned). NRW are currently installing new trays on the haul pack fleet which are lighter and more efficient and are expected to provide 10% more payloads. Some of the commissioning ore from Sly Fox is already on the ROM pad (currently +2kt grading 0.8g/t Au and growing), with the first blast from Golden Wings completed last week. The initial mine plan will see open pit ore sourced from Sly Fox, Golden Wings and the southern end of Gilbeys, with a staged pit cutback at Gilbeys planned to access the main ore source (containing ~550koz). GCY expects a quick ramp-up to full throughout capacity and due to the soft ore start should process above fresh nameplate towards 3.0Mtpa (running 2.8Mtpa for first 2 years for ~116kozpa and 100kzpa LOM). The stage cut back of the Gilbeys pit is expected to significantly reduce the strip ratio and mining costs for the first few years of the operation, with GCY forecasting 10-12Mt of waste deferral for improved early cashflows and capital payback (early debt retirement). Share Price Valuation $0.78 Price Target (12 month) $0.89 Brief Business Description: Gold developer and explorer Hartleys Brief Investment Conclusion WA gold developer & explorer focused on the +1.3Moz Dalgaranga project and the +1Moz Glenburgh project. Near-term gold producer. Chairman & MD Mike Joyce (Chairman) Mike Dunbar (MD) Top Shareholders Board & Management 9.5% Commonw ealth Bank of Australia 5.8% Company Address Level 1, Colin Street West Perth, WA, 6005 Issued Capital 434.7m - fully diluted Market Cap - fully diluted Cash (31 Dec 17a) Debt (31 Dec 17a) Debt (undrawn) EV EV/Resource Au oz EV/Reserve Au oz A$34.4m A$20.0m A$40.0m A$205.1m A$87/oz A$335/oz Prelim. (A$m) FY17a FY18e FY19e Prod (koz Au) Op Cash Flw Norm NPAT CF/Share (cps) EPS (cps) P/E Au Resources (Moz) 2.35 Reserves (Moz) Mike Millikan Resources Analyst Ph: Mar 2018 $ m A$219.5m A$223.5m A$ 0.40 M Apr-17 Gascoyne Res Ltd Jul-17 Nov Mar-18 Volume - RHS Source: IRESS GCY Shareprice - LHS Sector (S&P/ASX SMALL RESOURCES) - LHS E: mike_millikan@hartleys.com.au Hartleys has assisted in the completion of capital raisings in the past 12 months for Gascoyne Resources Limited ("Gascoyne"), for w hich it has earned fees. Hartleys has also provided corporate advice w ithin the past 12 months and continues to provide corporate advice to Gascoyne, for w hich it has earned fees and continues to earn fees. The analyst visited site at the expense of GCY, w ith all associated costs covered by GCY Hartleys Limited ABN (AFSL ) 141 Page St Georges 1 of 11 Terrace, Perth, Western Australia, 6000 Hartleys does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Further information concerning Hartleys regulatory disclosures can be found on Hartleys website

2 SUMMARY MODEL Gascoyne Res Ltd Share Price 19 March 2018 GCY $0.505 Speculative Buy Key Market Information Directors Company Information Share Price $0.505 Mike Joyce (Chairman) Level 1, Colin Street Market Capitalisation - ordinary A$220m Mike Dunbar (MD) West Perth, WA, 6005 Net Cash (debt) $14m Ian Kerr (Executive Director) Market Capitalisation - fully diluted A$220m Stan Macdonald (Non-Exec Director) EV A$201m Graham Riley (Non-Exec Director) Issued Capital 434.7m John den Dryver (Non-Exec Director) Peter Sperring (Registered Manager) Karl Webber (Exploration Man) Options 7.85m Sally-Anne Layman (Non-Exec Director) Julian Goldsworthy (Geology Manager) David Lim (CFO) Issued Capital (fully diluted inc. all options) 442.6m Issued Capital (fully diluted inc. all options and new capital) 442.6m Top Shareholders (est) m shares % Hedging (flat forward) A$1,712/oz Board & Management % Valuation $ Commonwealth Bank of Australia % 12month price target $ P&L Unit 30 Jun Jun Jun Jun Jun 19 3 Net Revenue A$m Reserves & Resources Mt g/t Au Koz Total Costs A$m TOTAL RESOURCE ,347 EBITDA A$m Measured margin % 37% 7 Indicated Depreciation/Amort A$m Inferred ,108 EBIT A$m Dalgaranga ,320 Net Interest A$m Glenburgh ,000 Pre-Tax Profit A$m Reserve Tax Expense A$m Mining Inventory Normalised NPAT A$m Abnormal Items A$m Production Summary Unit Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Reported Profit A$m Mill Throughput Mt Minority A$m Mined grade g/t Profit Attrib A$m Combined Recovery & Payability % 0% 0% 0% 92% 92% Gold (koz) Balance Sheet Unit 30 Jun Jun Jun Jun Jun 19 Gold Equiv (koz) Cash A$m M&I Resource Conversion (non-reserve) % 0.0% 0.0% 0.0% 69.3% 73.6% Other Current Assets A$m Mine Life yr Total Current Assets A$m Property, Plant & Equip. A$m Costs Unit Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Exploration A$m Cost per milled tonne $A/t Investments/other A$m EBITDA / tonne milled ore $A/t Tot Non-Curr. Assets A$m Total cash costs $A/oz ,290 1,104 Total Assets A$m C1: Operating Cash Cost = (a) $A/oz ,040 1,000 (a) + Royalty = (b) $A/oz ,124 1,087 Short Term Borrowings A$m C2: (a) + depreciation & amortisation = (c) $A/oz ,502 1,195 Other A$m (a) + actual cash for development = (d) $A/oz ,872 1,099 Total Curr. Liabilities A$m C3: (c) + Royalty $A/oz ,585 1,281 Long Term Borrowings A$m (d) + Royalty $A/oz ,956 1,185 Other A$m All In Sustaining Costs (AISC) A$/oz ,258 1,289 Total Non-Curr. Liabil. A$m Total Liabilities A$m Price Assumptions Unit Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Net Assets A$m AUDUSD A$/US$ Net Debt A$m Gold US$/oz Gold A$/oz Cashflow Unit 30 Jun Jun Jun Jun Jun 19 Hedging Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Operating Cashflow A$m Hedges maturing? No No No No Yes Income Tax Paid A$m Interest & Other A$m Sensitivity Analysis Operating Activities A$m Valuation FY19 NPAT Base Case Property, Plant & Equip. A$m Spot Prices 0.84 (7.9%) 43.4 (-8.2%) Exploration and Devel. A$m Spot USD/AUD 0.77, Gold $1314/oz. Other A$m AUDUSD +/--10% 0.65 / 0.97 (-17.1% / 24.5%) 30.2 / 61.3 (-36.2% / 29.8%) Investment Activities A$m Gold +/--10% 0.95 / 0.63 (22.0% / -18.8%) 59.9 / 28.5 (26.8% / -39.8%) Production +/--10% 0.97 / 0.59 (23.8% / -23.9%) 60.6 / 27.5 (28.2% / -41.9%) Borrowings A$m Operating Costs +/--10% 0.69 / 0.87 (-12.1% / 12.0%) 35.8 / 54.9 (-24.1% / 16.3%) Equity or "tbc capital" A$m Dividends Paid A$m Unpaid Capital Financing Activities A$m Year Expires No. (m) $m Avg price % ord 30-Jun % Net Cashflow A$m Jun % 30-Jun % Shares Unit 30 Jun Jun Jun Jun Jun Jun % Ordinary Shares - End m TOTAL % Ordinary Shares - Weighted m Diluted Shares - Weighted m Share Price Valuation (NAV) Risked Est. A$m Est. A$/share 100% Dalgaranga (pre-tax NAV at disc. rate of 12%) Ratio Analysis Unit 30 Jun Jun Jun Jun Jun % Glenburgh (pre-tax NAV at disc. rate of 14%) Cashflow Per Share A$ cps Other Exploration Cashflow Multiple x Corporate Overheads Earnings Per Share A$ cps Net Cash (Debt) Price to Earnings Ratio x Tax (NPV future liability) Dividends Per Share AUD Options Dividend Yield % 0.0% 0.0% 0.0% 0.0% 0.0% Hedges Net Debt / Net Debt + Equity % -6% -65% -77% 27% -3% Total Interest Cover X na na 23.5 Return on Equity % na na na na 42% Analyst: Mike Millikan "tbc capital" could be equity or debt. Our valuation is risk-adjusted for how this may be obtained. Sources: IRESS, Company Information, Hartleys Research Last Updated: 19/03/2018 Page 2 of 11

3 GCY has100 % interest in the Dalgaranga Gold Project DALGARANGA NEAR TERM GOLD PRODUCER The Dalgaranga project is located ~65km northwest of Mt Magnet in the Murchison region of Western Australia. The Dalgaranga project (100% GCY) covers the majority of the Dalgaranga Greenstone Belt with the key deposits of Gilbeys, Golden Wings and Sly Fox contained within a granted Mining Lease. Fig. 1: Dalgaranga Project Location (LHS) and Site Layout (RHS) Source: Gascoyne Resources Limited The Dalgaranga mine plan has a current mining inventory for 16.2Mt grading 1.3g/t Au for 652koz from the Gilbeys, Golden Wings and Sly Fox deposits Strong construction progress, on track for first gold production in May 2018 Gilbeys has previously been mined as an open pit to a depth of ~120m below surface, and represents a bulk mining open pit, with ~70m of largely free dig oxide material with very soft ore providing low mining and processing costs. Golden Wings is a planned higher grade open pit, which lifts the head grade at the start of the operation. The Dalgaranga mine plan has been updated by the addition of the Sly Fox deposit. The mining inventory now contains 16.2Mt grading 1.3g/t Au for 652koz from Gilbeys, Golden Wings and Sly Fox, with 94% from reserves 1.25g/t Au for 612koz) and 6% from Inferred resources within the pits 1.4g/t Au). We continue to assume a mine life in excess of 7 years. The maiden Sly Fox reserve 1.3g/t Au) is considered interim, with further growth anticipated as the deposit remains open. The upper parts of the deposit are expected to be mined in the first 17 months of production, providing additional oxide ores to lift throughput capacity in the early years (from 2.5Mtpa towards 3Mtpa) and deferring some open pit waste movement for improved capital payback. The increase in softer material in the early production years is expected to lift annualised production with potential to grow to +120koz from ~100koz in the first few years. Our recent visit to Dalgaranga reaffirmed the strong construction progress, with the processing plant on schedule for wet ore commissioning within two months and open pit mining well underway (commenced in early March 2018), with ore already delivered to the ROM pad. Page 3 of 11

4 Fig. 2: Dalgaranga Project Construction Progress March Mtpa CIL Plant Processing Plant - crusher in foreground Processing Plant conveyor from crusher Processing Plant conveyor to open stockpile Processing Plant ore transfer bin (inside) Processing Plant ore transfer bin (inside) Page 4 of 11

5 Processing Plant SAG Mill Processing Plant Gravity Circuit Processing Plant Leach Circuit Processing Plant Leach Circui Gas Power Plant and LNG Storage Source: Hartleys Research Site Photos Page 5 of 11

6 Fig. 3: Dalgaranga Project Construction Progress March 2018 Sly Fox open pit accessing first ore First ore on ROM pad Sly Fox Sly Fox quartz veined ore Golden Wings open pit prior to first blast Golden Wings open pit blast hole drilling NRW new haul pack trays Source: Hartleys Research Site Photos Page 6 of 11

7 Gold Production Oz Grade (g/t) and Mill Throughput We model Dalgaranga with an average throughput of 2.6Mtpa plant producing over +100kozpa at AISC of ~A$1,045/oz VALUATION UNCHANGED Our sum of parts valuation for GCY is largely based on the Dalgaranga FS and latest mine plan and the Glenburgh PFS. The Company s FS for the Dalgaranga project was based on a 2.5Mtpa CIL processing plant, but the mill is expected to be able to process soft oxide and transitional ores at higher throughput rate nearing 3.0Mtpa. The current mine plan has some 652koz (now includes Sly Fox) from a reserve of 612koz. The additional softer ores are expected to increase production in the first couple of years at ~120kozpa. The pre-production capital costs are estimated at A$98M. Fig. 4: 140, ,000 Dalgaranga Initial Production Profile Production Profile - Dalgaranga , , ,000 40, , We model Glenburgh producing ~70Kozpa at AISC of ~A$1,016/oz 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Upside Oz Produced Gold (FS) Grade g/t (FS) Mtpa (FS) Upside Mtpa Grade g/t (new) Source: Gascoyne Resources Ltd; Hartleys Estimates; FS with simulated upside yet to be included Our Dalgaranga production forecast is for average production +102kozpa at AISC of ~A$1,046/oz from Q2 CY18 for an initial mine life of just over 7 years, justified in our opinion due to the recent resource/reserve updates and expectation of growing mining inventory. We model GCY s next development asset, Glenburgh, in-line with the PFS (2013) producing ~70Kozpa at AISC of ~A$1,015/oz from late CY20 for ~5 years mine life (although we see potential upside). 0 Fig. 5: GCY Model Assumptions Dalgaranga Glenburgh We see good upside potential to our modelling Capex - Total ($M) Life of mine (LOM) Strip Ratio (x) 7.9x 8.0x LOM ave head grade 1.3g/t 2.0g/t LOM ave mill feed (Mt pa) 2.6Mt pa 1.2Mt pa LOM Gold recovered grade g/t 1.2g/t 1.8g/t LOM Au combined recovery & payability 91% 92% Total Gold Sold 712Koz 355Koz Total Gold Sold pa 102Koz pa 71Koz pa Current Assumed Mine Life (yrs) 7yrs 5yrs Commencement Date (qtr) Jun-18 Mar-20 LOM ave selling price (A$/oz gold ) A$1634 /oz A$1607 /oz LOM ave C1 cash costs (A$/oz gold) A$792 /oz A$880 /oz LOM ave AISC (A$/oz gold) A$1046 /oz A$1017 /oz LOM annual net cash flow (A$M pa) A$41m pa A$20m pa NPV12 - pre-tax (A$M) A$251.0m A$96.3m Source: Hartleys Estimates Page 7 of 11

8 More Expensive on Spot Prices We assume a nominal A$75m value for exploration upside Our latest GCY NAV is A$0.78/s Our latest spot NAV is also $0.84/s We believe GCY is well positioned for further brownfield exploration success at both Dalgaranga and Glenburgh. We value the exploration upside potential with a nominal (unchanged) A$75m. Fig. 6: Source: Hartleys Estimates Hartleys Sum of Parts Valuation for GCY Share Price Valuation (NAV) Risked Est. A$m Est. A$/share 100% Dalgaranga (pre-tax NAV at disc. rate of 12%) % Glenburgh (pre-tax NAV at disc. rate of 14%) Other Exploration Corporate Overheads Net Cash (Debt) Tax (NPV future liability) Options Hedges Total PRICE TARGET Our price target is based on our sum of parts valuation for Dalgaranga and Glenburgh, weighted for our valuations at spot and consensus pricing. Hartleys 12 month price target is $0.8 9/s Fig. 7: GCY Price Target Methodology Price Target Methodology Weighting Spot 12 mth out NPV base case 55% $0.78 $0.85 NPV base case at spot commodity and fx prices 45% $0.84 $0.93 Risk weighted composite $ Months Price Target $0.89 Shareprice - Last $ mth total return (% to 12mth target + dividend) 75% Source: Hartleys Estimates PRICE/NAV BASE GOLD PRICES VS SPOT How to read the below bubble chart: The bubble size represents the estimated CY2020 gold production. The x-axis is Price/NAV based on our gold price assumptions (similar to consensus expectations). The y-axis is Price/NAV based on current spot prices. Stocks become more expensive as they move to the right, and are cheaper in the bottom left. You can see from the chart that often similar stage stocks are grouped together (e.g. small unfunded developers versus large producers). Fig. 8: Spot price/nav 2.0 GCY Price Target Methodology Golds - P/NAV Hartleys Base Prices vs Spot Prices 19-March DCN, 1.81x, 1.71x We anticipate GCY will move to right and up (share price appreciation) upon reaching its first gold production milestone GCY; 0.65x; 0.62x SAR; 1.18x; 1.48x IGO; 1.13x; 1.18x PNR, 0.94x, 0.94x RMS; 0.87x; 0.89x AMI; 0.70x; 0.63x NST; 1.48x; 1.37x RRL; 1.49x; 1.37x EVN, 1.24x, 1.09x BDR; 0.44x; 0.64x MOY, 0.91x, 0.85x RSG, 1.11x, 0.98x EMR, 0.50x, 0.41x PRU, 0.61x, 0.55x CDV, 0.65x, 0.55x 0.2 WAF; 0.59x; 0.51x Hartleys Base Case price/nav Bubble size = CY2020 Au production More Expensive on Base Case Commodity Expectations Source: Hartleys Estimates Page 8 of 11

9 EV/EBITDA BANDS Fig. 9: Using Hartleys base case commodity forecasts Shareprice 2.50 GCY Actual 2.00 Hartleys Target 8x EV/EBITDA x EV/EBITDA 4x EV/EBITDA x EV/EBITDA 1x EV/EBITDA Source: Hartleys Estimates, IRESS Fig. 10: Using spot commodity prices Shareprice GCY Actual 8x EV/EBITDA 6x EV/EBITDA 4x EV/EBITDA 2x EV/EBITDA 1x EV/EBITDA Source: Hartleys Estimates, IRESS Page 9 of 11

10 Fig. 11: Assumption RECOMMENDATION & RISKS RISKS Key assumptions and risks for valuation Risk of not realising assumption Risk to valuation if assumption is incorrect Comment Dalgaranga Project Low Meaningful GCY is leveraged to the success of the Dalgaranga project. We model in line with the Dalgaranga FS but have made adjustments to early plant throughputs and mining inventory as per the latest mine plan. If the project varies largely from these metrics our valuation will be at risk Model parameters Moderate Meaningful We have made a number of assumptions, largely based of development studies, in our valuation of GCY, changes in these assumptions can change our valuation to both the upside and downside Exploration upside potential Moderate Low We assume exploration upside at Dalgaranga and Glenburgh. Some downside risk to our valuation exists if GCY has no further exploration success Development Risk Moderate High All development projects have risks. Dalgaranga is somewhat negated by previous operating data and mining. The FS is to a high quality and is considered robust to enable funding. Funding Risk Moderate High GCY has raised new equity to fund some of the project development costs for Dalgaranga. Debt financing is nearing completion with financiers mandated. At this stage first production is targeted for Q2 CY18. Conclusion Source: Hartleys Research GCY is trading at a discount to our sum of parts valuation, with project valuations based largely on development studies. Dalgaranga is development ready, but construction is subject to financing (debt) which we believe should be achieved in the near-term. Page 10 of 11

11 HARTLEYS CORPORATE DIRECTORY Research Trent Barnett Head of Research Mike Millikan Resources Analyst John Macdonald Resources Analyst Paul Howard Resources Analyst Aiden Bradley Research Analyst Michael Scantlebury Junior Analyst Janine Bell Research Assistant Corporate Finance Dale Bryan Director & Head of Corp Fin. Richard Simpson Director Ben Crossing Director Ben Wale Associate Director Stephen Kite Associate Director Scott Weir Associate Director Scott Stephens Associate Director Rhys Simpson Manager Registered Office Level 6, 141 St Georges TcePostal Address: PerthWA 6000 GPO Box 2777 Australia Perth WA 6001 PH: FX: info@hartleys.com.au Note: personal addresses of company employees are structured in the following manner:firstname.lastname@hartleys.com.au Hartleys Recommendation Categories Buy Accumulate Neutral Reduce / Take profits Sell No Rating Speculative Buy Share price appreciation anticipated. Share price appreciation anticipated but the risk/reward is not as attractive as a Buy. Alternatively, for the share price to rise it may be contingent on the outcome of an uncertain or distant event. Analyst will often indicate a price level at which it may become a Buy. Take no action. Upside & downside risk/reward is evenly balanced. It is anticipated to be unlikely that there will be gains over the investment time horizon but there is a possibility of some price weakness over that period. Significant price depreciation anticipated. No recommendation. Share price could be volatile. While it is anticipated that, on a risk/reward basis, an investment is attractive, there is at least one identifiable risk that has a meaningful possibility of occurring, which, if it did occur, could lead to significant share price reduction. Consequently, the investment is considered high risk. Institutional Sales Carrick Ryan Justin Stewart Simon van den Berg Chris Chong Digby Gilmour Veronika Tkacova Wealth Management Nicola Bond Bradley Booth Adrian Brant Nathan Bray Sven Burrell Simon Casey Tony Chien Tim Cottee David Cross Nicholas Draper John Featherby Ben Fleay James Gatti John Goodlad Andrew Gribble David Hainsworth Murray Jacob Gavin Lehmann Shane Lehmann Steven Loxley Andrew Macnaughtan Scott Metcalf David Michael Jamie Moullin Chris Munro Michael Munro Ian Parker Matthew Parker Charlie Ransom (CEO) Mark Sandford David Smyth Greg Soudure Sonya Soudure Dirk Vanderstruyf Samuel Williams Jayme Walsh Disclaimer/Disclosure The author of this publication, Hartleys Limited ABN ( Hartleys ), its Directors and their Associates from time to time may hold shares in the security/securities mentioned in this Research document and therefore may benefit from any increase in the price of those securities. Hartleys and its Advisers may earn brokerage, fees, commissions, other benefits or advantages as a result of a transaction arising from any advice mentioned in publications to clients. Hartleys has assisted in the completion of capital raisings in the past 12 months for Gascoyne Resources Limited ("Gascoyne"), for which it has earned fees. Hartleys has also provided corporate advice within the past 12 months and continues to provide corporate advice to Gascoyne, for which it has earned fees and continues to earn fees. The analyst visited site at the expense of GCY, with all associated costs covered by GCY. Any financial product advice contained in this document is unsolicited general information only. Do not act on this advice without first consulting your investment adviser to determine whether the advice is appropriate for your investment objectives, financial situation and particular needs. Hartleys believes that any information or advice (including any financial product advice) contained in this document is accurate when issued. Hartleys however, does not warrant its accuracy or reliability. Hartleys, its officers, agents and employees exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law. Page 11 of 11