The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi SocialistB,
I think the bank syndicates will require some equity for additional debt but I like your main point for being more debt heavy and paying this down faster with excess cash flow. A 50% cash sweep on excess cash flow is already agreed on and this instinctually feels like a good option.
Thank you for your post.
I’ve often thought in the event of a raise Convertible Loan Notes may be one of the ways to go, alongside others - borrowing the cash from Wyloo or somebody and paid off/converted to shares at a later time.
I think that GGP has been negotiating with Newcrest for buying Telfer and 70% Havieron for sometime and now Newmont that is why SD has been improving his BOD and other bods before NEM came in the scene. The change in the debt facility was also negotiated before NEM TO of Newcrest. My feeling is the decision on Telfer/Havieron will come soon and should have been sooner if the ponds didn't start leaking and now the stop in production has thrown the spanner into the works so to speak. If the boundaries of the TO had been sorted but not signed then for sure GGP will want sureties on the additional cost of repairing the ponds and restarting the plant.
Don't forget NEM have to produce the FS and decision to mine which are contractual and would affect the TO price if not resolved.
The good news is my Storks came back to the nest after disappearing when GGP share price plummeted some 3 years ago so i presume the SP will now increase when they lay the eggs as they did before, fingers crossed. DM
@Malva
May I suggest full on debt first.
For the first 6 months to a year, maybe 2 at a stretch.
As we we will be the 100% owners of Havieron and getting gold out of the ground, the share price should hopefully be multiple if today's share price.
In my view it would not be to bad to issue extra shares to pay down on the debt at that point.
Yes, we will be diluted, but we will also have dealt with the debt.
Greatland can then later on always buy up shares when they fall below a certain price and that way around both help to stabilise the share price and reduce the numbers of issued shares.
While we wait for details of the divestment of telfer and havieron, there are a range of opinions on how this would be financed.
Shaun has previously expressed that there is an ideal balance of debt and equity. We have seen this in the financing of debt and equity for the 2 mtpa mine plan.
In this financing, the A$200m debt (facility A) was agreed with interest at an Australian BBSY benchmark plus a 3.50% margin. We also saw Wyloo's initial A$60m equity subscription with scope for a future potential A$60m equity raise through warrants.
At today's rates, the existing debt deal from the banking syndicate means roughly 4.37% BBSY + 3.5% margin = 7.87% interest on the A$200m debt facility.
Shaun likened financing to buying a house. In today's market, that means debt is not cheap. The general consensus is that interest rates will not return to the super low, super cheap debt days that have been enjoyed in recent memory. It is far more prudent in higher interest times to 'buy the farm' with more equity and less debt.
I believe a good deal for financing the 3 mtpa upgrade, telfer and 70% project ownership will mean we finance any divestment with the balance skewed more towards equity and less towards debt.
The recent rise in gold price is advantageous. Institutions will be giving more attention to upcoming development projects, so any bigger equity raise should hopefully attract more competition.
This may be more dilutive but to long term shareholders (or very new ones) this would offer the best upside for the overall project. I am keen to see what path Greatland choose to take.
Go on Speedy - when do you envisage the SP starting to set sail? Thanks.
Hi All. The shift from tech/financial stock to miners is going to lift producers into the stratosphere. On paper it seems as though Culpepper made the right decision in moving from GGP to Newmont. Some serious moves recently in Newmont stock is showing the way forward. However, i think Newmont stock will only show a good return whilst GGP will show massive returns. The problem with selling GGP to take advantage of other opportunities is the potential of missing the boat when GGP sets sail. For me now it is just a matter of sitting back and waiting for the coming rebound. ATB Speedy
Forget Charles Archer for your information here. IT’s blumming Charles Brandreth we need going off the last two post’s. 😂
@HaveTelfer
A good intended use of a comma, the apostrophe I note is being used as an abbreviation for "is", commonly found in the acceptable spoken word version of English and the exclamation mark is therefore conveying punchiness to the overall statement.
I feel your comment would be structured better and convey the intended impact if the exclamation mark was used sooner, after the word "life".
This would then lead to capitalising the first S in the proper name Strudel.
I have noted the use of the apostrophe is good in the context of spoken English.
Get a life, strudel’s not here marking punctuation!
Cheers Redirons. No drama. I find that whenever people use the word "lol" in a comeback they can't articulate a proper argument, so the mud flinging that I'm a liar kind of confirms that. He's just got a really weird obsession with Bamps. Quite a sad life I would think.
“we can only hope they cannot get anymore into their deep pockets.”
Yes. One frequently wonders what the much-referred-to nefarious have achieved, or might yet seek to achieve in furtherance of their Ggp master plan.
Nah - not a love in Stebol just some mutual respect for the like-minded!! 👍👍
This has been going on for at least 5 years , it will not change , we can only hope they cannot get anymore into their deep pockets , as always , have A GOOD day
God forbid that this could turn in to a love in - but thanks for the comment Red - it's appreciated.
I'm rarely motivated enough to comment but a few ciders and The Stranglers 'Burning Up Time' sort of got me agitated enough. Burning up time is what it feels like right now but it will end.
Best Regards
Hi SAS - apologies for not responding to your post of last night sooner, but clearly with 32 tick ups on your post, we are not alone in our beliefs!! VGLA true Greatlanders, these have been the toughest 3 years (plus) that any of us could have truly expected, but this too must change imho - we need one of the catalysts to land to see a decent bounce back and then we are off to the races!!
Steb - a bit casual on the use of caps mate
Hi Chuff - I hope everyone reports Freddie for that - it is not acceptable!!
Love your post Stebol - love it!!
who cares?
sells v buys blah blah - its been done to death.
the only thing that matters is - do you believe we'll get it all or not? do you believe sd has assembled a board of this quality to do a bit of exploration or something more? do you believe he's sorted bank finance from 3 major banks just for a laugh? do you believe the bankers involved might have some confidence in the asset or do they habitually commit money to dead end projects? do you believe, seriously, that we sorted the 5% issue with newcrest and the diggers equity interest just for something to do? or spent nearly 3 years sorting access agreements for ernest giles because we were bored? do you wyloo took a stake because they thought we were on the road to nowhere?
i don't care about buys v sells - it's just a load of ****.
the only thing i care about is what the company is doing and for me, they're doing everything right.
it's tough at the moment but hey, we're well set.
regards to all the usual suspects, complete disdain for anyone in a box .
Been going on all week
Having the experience of the 5% valuation process, plus this is SD and the boards area of expertise, I am fairly confident of a positive outcome.
Just logged in and not read any comments but surely it's already been covered, the fact that we have 18 million buys v 4 million sells and we're up less than 1%! How can anyone defend this and say there's no corruption. Absolutely disgusting!!
You can disagree with me Freddie, but to call me a liar is defamatory