George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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I would genuinely like to thank contributors here over the last few days. I've finally caught up! We know what happened with the SP after the option price announcement in late July, a dip then strong recovery surpassing the immediately preceding level. The SP this week will be 'interesting' now people have had the weekend to reflect. I hope that a positive spin will now be put upon the news.
Surely we can join the dots now - Shaun Day came to London to secure the option for funding the $85m offer etc and that is the reason he did not disclose the purpose of his most recent visit at the meeting with shareholders on 14th July 2022.
@ Aquakidd, "If GGP offered newcrest $85 million for an additional 5% (which was turned down ) ,you would be totally irresponsible to offer it without funding in place, imagine if newcrest had agreed and nothing in place to cover it , SD would have been a laughing stock ,so obviously some negotiations with financial investors has already occurred, so you would think they would have discussed the possibility of newcrest not excepting the 5%..."
EXACTLY! A point I also made on Friday. Sometimes, I just cannot fathom out why some people just don;t do the most baic of research, and think things through. Clearly, Shaun Day would have discussed the possibility that Newcrest Mining wouldn't take the 5% in the term sheets. He's been discussing these with the banks for almost a year now, awaiting clarification, and now we have it! And, yes, there is no way, whatsoever, that he'd have made the offer of the $85 million, unless he'd had that type of financing well thought through. and discussed with the relevant parties.
If GGP offered newcrest $85 million for an additional 5% (which was turned down ) ,you would be totally irresponsible to offer it without funding in place, imagine if newcrest had agreed and nothing in place to cover it , SD would have been a laughing stock ,so obviously some negotiations with financial investors has already occurred, so you would think they would have discussed the possibility of newcrest not excepting the 5% , it’s logical, there’s a big difference also with Sirius minerals as many here will all be too familiar, 3.5 BILLION is the financing for Sirius, where here it’s MILLIONS.. ,a big difference in an institution agreeing to lend .
Sorry - meant to say exploration
Great post Majorsuccess. Let’s hope we get more encouraging progress in respect of the ongoing explanation on the various projects.
I’ve just upped my target price to 144 plus 20% minus the $60m so it’s now 170
Evening Spade,
Yes exactly, Re : 'But people need to spend a little time researching before coming here posting complete ball locks about things they have no idea about, instead of their blinkered view on what they have heard down the pub from other clueless folk. '
Since yesterday/today we have seen a plethora of Trolls/FUD activists plus complete idiots on here whom do not even bother to read GGP RNS's etc.
A perfect example being the 5% issue. I have made a note of some of their monikers just for fun.
1.Culpepper
2.Rosso123
3.Tall Dave
4.Gold4u
and lets not forget Daveri007 :O)
Ben, I agree with your post but would hope that Shaun puts out a new MRE for drilling up to 30/6/22, as a way of stopping any low ball offer coming in for our 30% of Havieron.
Evening Jiffy, long time no speak.
I might appear to some on this BB, as being condescending, as I was accused the other day.
But some folk who post on here think they’re the next Warren bloody Buffet FGS.
I never post what price I think the SP is going to be next week or next year, because I have absolutely no idea.
What I post here is where I see GGP being by way of fundamentals and the progress of information being given to us by way of RNS’s, as I’m sure you also do.
But people need to spend a little time researching before coming here posting complete ball locks about things they have no idea about, instead of their blinkered view on what they have heard down the pub from other clueless folk.
There are some very astute people on this BB, only to be shot down by muppets who don’t know any better.
Anyway rant over, back to the boxing.
Exactly Spade, 100% agree, it's called the Fractional Reserve Banking system.
https://www.youtube.com/watch?v=vVZ48_V_dKQ
Tradeorlth your talking through your backside.
“It's not that easy to raise finance with soaring inflation with favourable outcome for shareholder.”
What is it you think banks do to make money ? Keep cash locked away in a vault until things get better.
No, they don’t. They actively seek out companies just like GGP, to lend money out to.
That is their business, they loan out everyone else’s money to anyone who they risk access can pay it back plus interest.
You obviously just don’t get it.
60% of every penny that most people earn ends up with the banks one way or another, whether that be buy savings accounts, mortgages, insurance policies etc etc.
We live in a world where the banks control everything.
For every account holder that gets paid interest on their deposited cash, how do you think the bank pays that interest.
By lending it out for a much higher percentage, than they pay back to the likes of you & me.
Banks will be battling each other to lend GGP the money they need.
Banks don’t want money sat in their vaults, as that is a liability to them.
They want to get rid of it asap, and transfer the liability into an asset.
An asset is something that brings in money.
A liability is something that costs you money.
Banks love assets, and Havieron will become a massive asset, so please don’t comment on things that you appear to have no knowledge of.
I put a post up the other day stating that most people have never been taught how money & finance work, especially debt finance, and you have just proven again, that you have no idea.
Do yourself a favour and learn about it before it’s too late.
You will quickly learn what has never been taught, and will stand you in good stead for the rest of your life, that the western world live’s for debt.
Without it, it can’t function.
Tradeorlth - your statement -
"The only people who would ever make decent profit are LTH who bought in low as well as Newcrest"
In my opinion you're likely to be proved incorrect. The upside potential is huge - no one can guarantee what will happen. But your black and white statement seems a bit over confident and negative. Let's see...we are currently mid 10's - so you say anyone buying in now won't double their money within 18-24 months? Let's see...
Let’s think for a moment, we need to raise probably $100m+ by next year (guestamit)
Now and between then we will have another if not two MRE’s which we can produce ourselves because we have nothing holding us back and I would presume Newcrest would not dispute anymore.
So the fact is Shaun has done one for 6.5moz and confirmed by Ncm.
He also said there is 20moz but not in writing and he has not lied so far.
Now how high will his next quote be in a years time?
And people still question wether we will get funding!
All in my opinion of course
The only people who would ever make decent profit are LTH who bought in low as well as Newcrest. Every one should evaluate their circumstance before getting swayed away based on Shaun Days interview. It's not that easy to raise finance with soaring inflation with favourable outcome for shareholder. Look at HZM, who despite having what you expect of a junior, were unable to raise with favourable outcome for shareholder. To make things worst we have shorter luring.
It would be good if existing shareholders were invited to participate in a rights issue, but my recent experience is that this is unlikely. You can see why I guess, much easier and cheaper to get a few large investors via a placing rather than hundreds of small holdings
Seems very likely - but good news is that any placing dilutes from a 30% share of hav now, not 25%
My understanding from reasonably recent interviews with SD was that he had interest from banks to lend. He said that it was a bit like a mortgage, where the bank expected GGP to put up some equity. I may have got it wrong but my interpretation of that was he would expect the company to raise some capital through equity and then banks would lend the balance as debt. So I am expecting a rights issue/ placing and bank debt. But what do I know!
And
Lets get serious - raise a couple of bill, buy back hav, take over telfer (lock stock & barrel - inc employees, town) and wave goodbye to Mr Biswas & co (Will give them some cash to go play elsewhere) as they ride over the sunset; pilbara sunsets are some of the best in the world. Dare to dream folks - how to build GGP into a very valuable mining co in one fowl swoop.
Ant
Ace, does it not worry you about the manipulation on Aim and how the Aussies will view it?
Would it not be better to wait until if(when we’re on the main market.
No mate plenty looking to take a punt on GGP on there home board; just as wild in the west over there mate.
This is what Shaun said at the last meeting about funding:
He said his top priority is Havieron. First any cash raise would be used to ensure that GGP did not delay the joint venture through lack of funding on our part (or even if the opportunity arose to help accelerate development of Havieron); secondly to bring in more IIs. He was pressed to include PIs in any fund raising and he said he would try to do that.
He avoided answering to the question about why he was in London [for two weeks]. He stated his preference for keeping 30% of Havieron. He made references to Term Sheets and 'banks you and I use' willing to provide funding.
I suspect he may have had an inkling back then that NCM were not going to take up the 5% and so it seems to me that funding will not be a problem even without the $60m for the 5%.
And just to balance it up, what about his tenure at Northern Star as CFO, how did that fare ?
i guess we only need to look at SD past as finance director of SO4. That got into all sorts of trouble over its debt/ project finance with one SD over seeing the whole mess.
If you look at the Aussie market, they are also under the impression the ASX is manipulated. They have often spoke of their companies listing on the LSE too in order to avoid “manipulation”.
At this point, after the 5% has been rejected by NCM, we are not liable to pay anything back until after production starts. What’s interesting is that there has been a lot of talk about not being able to get funding/loans whilst we owe NCM this money. Shaun must have surely thought about this scenario. We now have 30% for sure. What we do with it is anyones guess, but surely they’ll be some news in the next couple of weeks from Shaun about funding. We wait with baited breath :-)
Trippy I think some saw a piece in masterinvestor 4th August mentioning us in the same breath as Sirius , not very flattering!!!