The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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Maybe it's time to refresh our memories, even address some of the queries that have resurfaced yet again over these last few weeks......No harm done...
I have precised the podcast but you'll get a fuller picture if you sit back and listen:
https://audioboom.com/posts/8023506-midweek-takeaway-with-shaun-day-ceo-of-greatland-gold-aim-ggp
Feb 2022
Q: Recent broker story is 5% valuation option. Good way to value company?
SD answer: I have inherited the process so I will make best value of it. We would normally agree a value, alternatively we might go to a lengthy drawn out process. This a multi decade asset. It will take 3-5 yrs to continue drilling to assess this project.
Q: If you can’t reach agreement, you will use the VALMIN code?
A: Confirmed.
Q: If I use 20Moz x $1000/oz because of AISC, is that a close valuation for the 5% valuation?
A: It comes down to valuing at a relatively early stage of the development. 20Moz is not a JORC resource currently…too early. If it goes to VALMIN process there is a broad range of outcomes.
Q: Other opportunities other than Hav. Give us an overview of the rest?
A: Two parts: Tier 1 jurisdiction / multi decade asset/copper (20%) and gold / low risk area. Early days, low cost free cash flow generation. Secondly: Unlocking option value in portfolio. Elephant country. Up north….this is the post code for drilling. Scally / Juri…all of that is rich area. Finding even another quarter of a hav would be a tremendous outcome. Modern techniques allow us to peer thru the cover. Ernest Giles is under cover, under explored. Just agreeing access agreement, to be confirmed later this year. Panorama/Bromus…Au and Cu assets…drilling this year too.
We talk to other companies about where we can add value to their process. My team is developed now, strengthening the board in future. ‘A’ grade board is essential. Maximise potential of our portfolio.
Q: At some point in 2022, you are going to receive a lump sum. What you going to do with it?
A: Fully fund Hav. Pay off our $50m debt to NCM. Engaging with banks. A dozen want to engage with Hav. Bring in sum debt may be our pathway to fully funded. I intend to complete the debt process. Well funded too, to unlock other portfolio’s.
cont'd.......
cont'd......
Q: Telfer has done 20Moz over time. How much is that worth compared to GGP value.
A: Telfer has been there for 35yrs. Taken them this long to process 20Moz. Puts it in context. We like to think Hav has that similar opportune ity. It will take 3 to 5 yrs of drilling to unlock that value. Goes down 1350m at an angle and under cover takes a long time to explore. The decline will accelerate the cycle time for drilling and assays. Unlocking hav will be speeded up over the next 3 yrs.
Q: If you had a major coming is it worth fragmenting the assets to be able to sell the fragments rather than the whole?
A: We would like to build a multi billion dollar asset and mining house. Always open to an early offer at a value that would normally take us years to unlock, then of course we would consider this but it would also need to be approved by shareholders too. I have created value in my career. Hav is a much better platform for launching this from.
Q: The crown jewels are Hav. If NCM came with a big enough offer, would you sell it all?
A: Good question. If someone offers us NOW the value that we would normally unlock over the next 5 yrs…we would have to take that seriously. But with a tinge of sadness…we have something special here. If we can take a short cut…we have to think about it.
Q: It’s a cash cow if you keep it.
A: From a GGP pov, the decline is started plus $480bn spent so far, it seems reasonable to assume NCM understands the quality of Hav. They want to keep Telfer running. GGP can reinvest their earnings for the broader portfolio. We are fortunate to be aligned with NCM.
Q: Anything you think could derail GGP over the next few years?
A: We would have liked the PFS to be a 100 times bigger! None of us are going to die of boredom, Phil! Nothing is linear in progress.
Q: Do you think the SP is undervalued?
A: We continue to create value. Phil: Thanks for not answering!
Z
Link to download detailed notes for the podcast too :-)
https://www.mediafire.com/file/wv88dnvbc4lqeh4/Notes_from_The_Sunday_Roast_Podcast_-_02_Feb_2022.pdf/file
Today I was pooed on the back of my shirt as I had a photo taken of me standing beside the Lassonde Mining Building , University of Toronto, 170 College Street. That's got to be a double good omen for my holding of GGP shares. Surely, now the only way is up! GLA MrEMC visiting daughter in Toronto.
Getting 5hit on from a great height is what many on this board have felt like for the last 16 months.
You just gotta laugh at that MrEMC2.
That is funny
Hi Zoros,
Thanks for the Refresher.
Re:' From a GGP pov, the decline is started plus $480bn spent so far'
Shouldn't that be $480 m?
Thanks