The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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The big difference in the graphs and where we are, is that there is already a processing facility close by and we are in a JV with that facilities owner. Plus it is being fast tracked so those time frames don’t apply !
Seriously, the relative value of GGP has gone from just below 0.5p to 12p so have we hit full value? Perhaps we are the exception to the rule if we have a tier 1 discovery.
my wishlist would be to sell 20% to Newcrest retain the remaining 10% and crank up the exploration on our licences with a view to flipping them to a major to do the mining
a good long term business model that utilises our boards skillset
In my opinion, we have skipped the dip shown on the Goldseek graph. No dip for us.
No 'sold to miner' part, we have the NCM JV in place and are now at the end of the feasibility / start of the development part of the curve. Just waiting for the MRE (soon) PFS (soon after) then the decline goes in (year end/beginning of next year). Recent RNS with the all the paperwork for mining licence prove where we are at.
I would say we are about 2/3 on the relative value as we are still exploring.
We will bypass the sell bubble and go straight to sell to miner so 300% from here (sounds good on paper)
If sold to the miner we will get 12p as shown on the graph (haha).
Hi DBH
The sell to miner wiggle in the goldseek graph seems to be more our pathway
Mine cycle - this one also looks helpful.
https://www.gold.org/about-gold/gold-supply/how-gold-is-mined
Sorry Welsh Falcon, I didn't mean to skip past your input. I agree. The timescales will be shorter and the 'machinery' costs for Havieron will be lower. All bodes well!
Thanks MrE, much better link and really brings it to life - maybe one for BR to include in the GGPhelp website
GLA
DBH
That was the one MrE!
Hi DBH, It was a different presentation (on a video) but identical in detail. Now what we want is for Scally to layer across that, slightly further along the route, so the SP dip doesn't occur. Come on Gervais!
or this one
http://www.usfunds.com/slideshows/lifecycle-of-a-mine/
Hi Mush
I think the graph you refer too is this one:
http://news.goldseek.com/PeterSpina/1500580800.php
DBH
Thanks schlemiel! I try to filter down most things to bite-sized chunks in my head. I remember reading a handy book years ago about how to run a successful business. It quoted some chap who got his deliveries of raw material on a Monday, took made knives and forks with it on Tuesday and Wednesday, delivered them and took more orders on Thursday. Got paid on Friday and used the money, less his profit, to order more raw material for Monday.
Very simplistic of course but a good reminder about cash flow and not leaving excess material around or offering the headache of credit. In fact, the further the discussion moves away into the realms of warrants etc. the more I start to glaze over haha.
I think you will find that Havieron is atypical. Useful for us who understand and can take advantage when/if it becomes undervalued for a time.
1.CAPEX will be low, very low. There is no processing plant to design/build - TELFER....
2.NCM need some high grade ore into Telfer asap, timelines will reduce dramatically (witness the rapid pace of drilling from NCM).
3.Current and expected gold price, will provide further imperatives to get production out asap.
Spot on mate.....'pay attention to the life cycle'..I believe these 6 words encapsulate the fundamental rule for investing in mining stocks and indeed many other stocks from other sectors
There is a finite life cycle based on the fact that all natural resources (even Solar) are in themselves finite in nature
Someone put a link on here recently (or I may have done my own research! blimey) to an article advising how to invest in mining shares. From memory, there is a boom period leading up to the MRE/FS and then a decline period (in the SP) during the long 2/3 year timescale required to set up the mechanisms for the profit-making mine, at which point the SP starts to grow again.
It stands to reason, in my opinion and for the sake of a stable SP, that the exploratory drilling at Scally would be best timed to dovetail in with the mining journey beginning at Havieron (assuming satisfactory MRE and FS and that the company does not get bought out).
(On a tiny, tiny scale I used to pay attention to this a wholesaler to the gift industry. One or several products boom, your profits roll in, pay attention to the life cycle of these products and if any start to wane, bring in another to keep the turnover and client interest going.)
*(I wrote the above when really tired last night and cut it onto the clipboard. I think it makes sense!)
is being assimilated by the market and punters who are not quite so well versed in the business as many on here. Not to be critiical of course as the well researched information on here is invaluable for 'jack of all trades' investors like myself. This latest Paterson concession has to be another vital building block for the company and although cash burn can be dramatic in any exploration business we are for the time being well financed. More grist to the mill for the everyday punter I feel.