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Same here, agree
My plans fall in line with dodgemeister. I'm hoping for a short term gain in installment payments for haverion.
And a long term strategy with scally,black hills etc.
Leave a 10% royalty agreement with each area.
I’m with you @wasred.
Deal on Hav, special dividend to shareholders, then on to other assets. Rinse and repeat.
Explorers want to do just that, explore. I’m invested in an explorer and enjoy that aspect of this sector, exploration. I mean, after the fun we’ve all had watching Havieron develop since the first stellar assay results, why wouldn’t we want to enjoy the same ride with Scally? It’s a buzz that most people don’t experience on a daily basis, definitely kind of addictive and to lose it to a major would feel a bit handing the Crown Jewels to a republic.
The emotional attachment is strong with this one : )
Personally I go for a buyout of Havieron only, dependent on the working relationship between the respective BODS. Assuming, as it appears, it is very good then it is better to engage with 'the devil you know' which applies to both parties. I anticipate a very fair and acceptable valuation of H by, coupled with an agreement with, NC that they have first refusal on all of the remaining, and any future assets, owned by GGP. This will serve a purpose for each company;. NC will avoid the necessity to raise the capital for a full takeover and possible auction and the gamble of assest valuation before a full MRE. It also ensures, if confident in what it has or expects to have, that GGP realises full and fair value for it's assets. Solely my opinion, others will think or even prefer otherwise, but that's my hat in the ring. GLA
Folks, the current value of GGP lies in Hav.
From GGP website re Scally MMI "Response of certain groupings (or suites) of elements over parts of the Scallywag target are similar to those that were seen in MMI sampling over the Havieron prospect." As they say, the best place to look for new gold mine is next to a gold mine. But what's the rush? It's a solid asset which can be developed in time. Someone who wants to buy and develop a mine will spend millions and likely billions of $$$. You don't want to bankrupt them - mining is a long game. And there are lost of players out there with strong balance sheets looking for good assets.
However go look at the Black Hills data. It's a relatively shallow ore body. One set of readings SRRC004 7m @ 0.29g/t AU FROM SURFACE, then 6m @ 0.67g/t from 60m. SRRC001 12m @1.38g/t and 1m at 10.96g/t.... Look at the gold nuggets picked up out of the sand while GGP were walking around!!! Open pit mining is much cheaper than deep mining. This is an asset that will be cheaper to realise and more marketable for GGP investor value.
Don't rush to sell everything. It's not a fire sale.
Patience, my young Padawan. :)
GLA. Hold for Gold.
GH may not have a choice if the price is up there !!!!!Q
I reckon you are wrong there Mickey, why would GH let go his golden goose .. he isn’t ready to retire yet and he wants to develop this company. Maybe a buy out of Havieron but not GGP !
I think a little bit higher after first few drill results from Scallywag.80p-£1.
Golden , we are looking at a complete buy out of GGP by Newcrest , Wednesday could be the last drill results ggp will have an interest imo 74p take out currently
Hi, Goldenl.
It's a tightrope. A proved asset with MRE is worth several million $. Once you have a hole in the ground and bulk ore is removed you have a mine worth several billion $. Most LTH have intimated that they are keen for a buyout. Newer investors (tending to have smaller holdings) are happy to hold for the long term and see miner/explorer/NSR evolution. Either way we have to wait until next year when NCM get the mining licence and dig holes 1400m+ deep.
GLA. Hold for Gold.
RedJ
Opportunity cost.
Why pay for 25% of Hav - if you are going to buy - when you can have the whole lot of prospects for very little more, or spread your risk with a number of JV's.
If I am not mistaken GGP retain 30% after farm in completed,with NC having an option to buy 5% at FMV.
It doesnt mean that NC are automatically entitled to the extra 5% so if they have to pay FMV why buy it?,or conversely why not pay FMV for the 5% and not buy the remaing 25%.
Golden, not sure i agree with you on that one... what you should be asking is why would Newcrest NOT want to buy the remaining 25% of Havieron. I personally would prefer if we kept our 25% creating a sustainable future income to go at our Scally assets solo however i just don’t see any scenario in which Newcrest don’t own 100% of Havieron come the end of this. It makes no sense for them from a business point of view to have a monster of a gold asset next to their Telfer processing facility and not to own all of it. What i suspect to happen sometime post MRE is for a Havieron bid to come in for the remaining 25% as well as Newcrest sniffing about for a beneficial JV to our Scally targets, not that there’s anyway we’ll be offering up anything like we did with Havieron now that we’ve got / will have the cash to potentially be able to go at it alone. Whatever happens though it’s going to be an exciting ride! GLA.
They like to own all of their licenses, they have a history showing that. Also, owning 100% will be worth more to them in the long run.
FWIW, I cannot see NCM making a play for that part of Havieron that they will not own. The 5% taking them to 75% - certainly, but the other 25% - why?
Why pay full price for 25% of Havieron when there are so many opportunities out there? They have just raised cash and invested elsewhere - yes they are still cash rich, but large companies like to have a good buffer, especially in uncertain times. NCM probably would like to get some positive cash flow feeding into their accounts from production before another big spend - but the right offering at the right price, well they would have to take it.
I think that NCM will either (a) see the JV out and look to enter other JV's with GGP...OR (b) buy the whole of GGP at a price close to FMV of the 5% plus 25% of Hav,plus a little (say USD50m as previously estimated) for the remainder of the estate.
Not sure anybody else would want GGP's 25% of Hav - too many disadvantages when you are the junior partner in a JV unless you retain a very good working relationship (which NCM and GGP evidently have).
This is what is most appealing for any consideration of a T/O - Extract from GGP website: "Following a review of regional geophysical and geochemical data over ther Paterson project approximately fifty targets were identified in the broader region, with around half in ground held by Greatland".
As ever, just an opinion... DYOR and IMHO