The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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GH stating that if more funding was required it would turn to its supportive shareholders.
https://youtu.be/uP-ne7_wUEA
GH being interviewed three years ago on the initial purchase of Havieron for 750 thousand Australian dollars.
https://youtu.be/YQ6wBn6uldo
Hopefully: "GH stating that if more funding was required it would turn to its supportive shareholders."
That was GH in June 2016, in the interview on 18 May this year he stated
In the London South East interview 18 May 2020 Gervaise Heddle CEO of Greatland Gold said:
“Hopefully we're at the point where its a decision to mine. And then we share the up front capital costs according to our share at that time and at that time we would have 30% they would have 70%.”
“Now they do have the right to buy 5% at fair market value at that time from us. If they do that will be a BIG amount of CASH that will come in at that time. Which will obviously, that may cover a lot of our costs in terms of the up front capital that we'll require. But whatever the case we'd be looking to debt finance any amounts that we need to do this”
“The key is to minimise equity dilution now and maximise value for shareholders. On a project like this I am sure that we could get some,well, I am optimistic that we could get debt financing for our share of any upfront capital costs”
CTC - we need this as a pinned tweet at the top of the page ideally as a lot of weekend wobblers ask. Pity LSE don't offer that facility
@CTC / l-a
Perhaps we could get BR to put it on his site, how this has changed over time.
TmT et al, I will add it to the /LSE page for you now.
Hi Countthechickens. You are right. Someone said the other day that if Greatland wanted to reward the existing shareholders they could offer shares at a discount as a reward instead of a dividend especially if the want to fund future drilling. I remembered seeing the video sometime back and thought I would post it as back then it was a option. Of course things have changed since then but still a option at their disposal if needs must. I worked for Rolls-Royce and this is how they funded new jet engine devolpments back in the 80/90's.
''they could offer shares at a discount as a reward instead of a dividend''
Not a lot of good to anyone who hasn't any spare funds left to invest (like me) is it?!
However, additional free shares in lieu of any dividend payout is an idea I would most certainly get behind!
Nor me MattyBoy! Short of selling my body on a street corner all my funds are in.
Mind you, I don't think two quid would buy me much anyway.
Evening hopefullygold. If all existing shareholders got free or discounted shares it would just be like a share split, ie no one would benefit as sp would just fall to reflect the dilution. Pretty impossible to prove who has held shares for a long time. The only way to do anything would be to issue warrants with any new fund raising that don’t vest for ages but that is forward looking rather than backward.
Once the MRE is published by Newcrest that will mean GGP can use their 30% as a capital asset and use it to agree a bank loan or go to a venture capitalist.
If we take the MRE as 8.5m ounces and give the gold in the ground a value of $250 an ounce that will mean GGP's 30% will be an asset worth [ 2,500,00 m ounces x $250 = $ 637,500,000 ]. That value can be placed against a loan and GH will already know who he will want to deal with. Lets not rule out the possibility of overtures coming from another mining giant or two.
So current money in the bank is for prospecting and our 30% of the MRE is our VIP ticket to the joint Havieron Mine.
Chester.
chester - once the MRE is published we'll still own 60%.
That won't change until PFS next year.
What it will do is give us an early-ish indication of the size of the resource and potentially its value
chester - " GH will already know who he will want to deal with". The appointment of Joint Corporate Brokers and Financial Advisers to the Company with immediate effect as notified in RNS 30 July was very revealing I believe. Berenberg and Hannam & Partners will work alongside the Company's existing Corporate Broker, SI Capital.
Hi Stebol
I realise we currently own more of Havieron but you can't borrow against something that is 100% not going to be yours in 12 months. The 30% is ours and if Newcrest want that extra 5% it will cost them top dollar. So I'm just stating exactly what is ours to do a deal on.
Lebugue-Addick I agree it could be SI Capital but GH will have options so if they want to be the backers, their offer will have to be as good as the competition.
SI Capital shouldn't believe its in the bag, that's not good business.
Chester.
They don't need to raise capital for Havieron regardless. If you look how Newcrest operate their other assets with toll processing, they pay their partner profits after processing fees.!
If they need to raise funds then they have block build then placing and or warrants either way GH is a qualified moneyman and knows exactly how to raise funds.
Jerry
A cash or scrip optional dividend would be fine as would not effect the SP.
Any shares issued in lieu of a cash dividend would be equal to the cash that GGP would retain so in terms of the companies value they cancel each other out.
Chester, can i just make the point (in a friendly way) that calculating Havierons value based on $250 an oz now is mad. We knew that it would be $150-$300 an oz when POG was at $1600
Anything under $400 an oz now is bonkers if you ask me.
With processing in place and bulk/stoping mining techniques to be used, Havieron will have one of the highest margins among the mining scene.
Just wait, i think everyone is hugely underestimating the value thats about to be disclosed.
mercedesman,
Yes I tend to agree, $400 for now and pushing into $500 as gold rises in the short term.
I think if we use 3p per million oz at Havieron to work out the value then that assumes the gold to be worth about $530 per oz. That's divided by the fully-diluted number of shares, 4,206,000,000. That would mean 14p suggests about 4.6 million oz now.
Obviously that ascribes no value to Scallywag or anything else. My opinion is that there's more gold than 4.6 million oz at Havieron, and maybe it's worth more than $530 per oz given the comparatively low capex requirement.
It's what turns up at Scallywag that will really change things, and what sort of farm-in can be agreed. Exciting.
3p risked and was 4.7 mil and unrisked 25-28 p from memory, so 5-6p per mil :)
Jerryspaniel - good morning. We had a thunderstorm in Almeria last night and knocked out everything including the net, wonderful! Good thing it's freshened things up. On topic the shares I bought had to be held for a minimum if 5 or seven 7 years before being released into the market. From memory I purchased @ £1.15 and sold for £2.30 ish circa £24k return. If I had held until 3 years ago £13 a share. Hey ho. If Greatland can hold off a take over then I can envision £3 a share in five years in which case I'll buy mushroom some furry dice to hang from his rear view mirror. £5 a share and I'll get lady mush one of those nodding dogs that were so popular in the 70's.
£3 a share suggests a market cap of £10billion. Fresnillo is currently £9.5billion with 5 operating mines in Mexico. For perspective.
All depends where the price of gold is once mining stars or even end of year for mre https://www.dailymail.co.uk/money/markets/article-8612747/The-coronovirus-gold-rush-Londons-precious-metals-miners-soar.html
Hopefullygold said:
'£3 a share in five years in which case I'll buy mushroom some furry dice to hang from his rear view mirror. £5 a share and I'll get lady mush one of those nodding dogs that were so popular in the 70's.'
At those prices I'd be prepared to listen to the whole album of KTel's 1976 24 Great Truck Drivin' Songs.
In the meantime, let's breech 14p. Come oooooon you sluggard price! Even I, the bastion of patience, having once watched a whole ITV comedy series waiting for a laugh, am beginning to crack under the pressure.
Good post Mush but don't crack just yet
We need further news updates and
some serious buying to enable the SP to progress.....
Jambo, I am afraid I dont understand your point. ALL dividends affect the share price.