Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Majorsuccess - how much gold do we have? Try again please?
Z
Thanks for your reply (as ever) Speedy - fingers crossed we see some true positives to the SP by Q3 2024.
Hi Matty. Not if stock is bought back with excess cash flow. Debt is ok with low rates but no one knows if rates will go into the teens or even higher. I am no expert on high finance but SD is and i assume he will do the best deal. ATB Speedy
Sorry I forgot $£ exchange rate make that $125 in ground price but still incredible
2nd try at posting! I’m very confident that this will rocket in the near future. Our mcap is now only 280m and we have 2.8m MRE so that values us at $100 in ground per ounce. Has to be the bottom of price range now just incredible imo
I’m very cofedent
Raising through equity effectively dilutes cashflow in perpetuity, raising through debt does so until debt is repaid. I have a strong preference for any raise to be debt heavy - not least as I believe cashflows will cover the interest easily and allow the debt to be repaid - or as we see in most companies, refinanced - typically, once a company is up and running with steady cashflow, only the cost of servicing the debt is reflected in share price, the assumption being that any loan can just be refinanced as and when needed.
Hi Malva. I have always preferred equity over debt and with current interest rates even more so. Having said that, the idea of short term debt to get to production then an equity raise makes good sense. I am sure SD has all bases covered to achieve the best deal for all. ATB Speedy
Hi Red. That is the big question. The RNS announcing 100% Hav and Telfer ownership deal for (insert 1 of 20 possible funding parameters) along with the FS and DTM, will "blow the bloody doors of" Just for fun 1st Sept. ATB Speedy.
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