Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
In as little as 9 weeks time Newcrest can apply for the 5% @ FMV
Taken from The Newcrest website:
“Newcrest has an option to acquire an additional 5% Joint
Venture interest for fair market value, exercisable during the 12 months from 12 December 2021.”
How FMV can be reached at this point with so much growth drilling still to be done is anybody’s guess.
I would hope that the feasibility study due next Dec would be released before the deadline ends but the fact remains that anytime from Dec 12th Newcrest can exercise their tight to the 5%.
BTB
A valuation of the 5% has to be agreed between the parties they cannot just exercise their right to it. I'm sure i read that the valuation would by an independent third party.
Read the statement from the Newcrest website.
Newcrest has an option to acquire an additional 5% Joint
Venture interest for fair market value, exercisable during the 12 months from 12 December 2021.
BTB
Here we go again, another string of posts being started about the 5%. What is it with some of you lot. Have you got the brains of a Goldfish having to keep reminding yourselves every couple of weeks about it.
It's like the old film "Groundhog Day" here these days.
You think that GGP will just roll over and let NCM 'value' the 5% and take it? There will be a third party involved and proper procedures that might well take more than the 12 months.
Here’s how this works.
NMC have an option, which means precisely that they have the RIGHT to buy the 5%. The value (if not agreed between NMC and GGP) will be determined independently by a third-party. GGP will have the opportunity to provide input to this valuation process, but the what the third-party says will stand. NMC will be able to proceed at this independently determined price, regardless of whether GGP are happy with it or not. Neither the GGP board or its shareholders will be able to prevent a sale at the independently determined price if NMC wish to proceed.
In practice I expect that NMC and GGP will do all they can to avoid a dispute. The two companies appear to have a close and continuing relationship that is mutually beneficial. They are likely to wish to sustain this. I do not expect the process or any resultant transaction to be controversial or a source of conflict. Other than on this ‘board of course..!
Touched a nerve have i deramper?
For all shareholders what i have posted is the fact that anytime from 12th Dec Greatland gold will receive a large chunk of money if Newcrest exercise their right to the 5%
It seems that this deramper wants to trivialise the fact that we are in for a big windfall within the next 12 months should Newcrest exercise that 5%
I should change my name to bewarethederampers!
BTB
Hi SB, there is another option that nobody mentions is that both parties can agree to extend the 5% option until it becomes clearer what the potential value is of HAV, that for me is the way to go. Ciao DM
You really are so funny! Your 3 very similar spam postings around 14.00 make a bit more sense with your latest effort, well done, looks like you are improving - but not about me, I have never deramped any share (or ramped).
Your board name is very apt, the brokers must enjoy taking you for a ride! I might change my name to 'BewaretheIdiot.
Exactly Droverman re : 'until it becomes clearer what the potential value is of HAV'
So, lets hope we have a 'Growth Clause', ie given that we will still be drilling Havieron over at least the next 2 years?
Why would they want an extra 5%
For arguments sake let's say Hav is valued at 10 billion
Newcrest have already spent 75 mil for 70%, ie
to get £7 billion
Think these are the correct percentages)
And now an independent will value 5% --so a 500 million valuation. Newcrest would want a profit on that and would not be willing to pay 500 million for it.
Would they want an extra 5% and maybe the rest of Hav?
Cost to profit margins - I don't see it.
Yes will get a profit if bought but maybe they have better things to spend their money on.
Aww have i hurt your feelings poor little chopper boy?
Have a biscuit and go cuddle your teddy.
There there little chopper boy there there.
BTB
You generally buy an asset if you think it will appreciate.
From my understanding they have 12 months to purchase the 5% and this might be at a valuation that works for both parties:
Greatland - to meet capex costs and fund further projects
Newcrest - if they think the NPV of Havieron will increase
No opinion on whether it will happen but might work for both parties.
Lol SaS you do love a good rant, you remind me of myself sometimes! ;) On the 5% point it will be interesting to see what it actually sells for assuming they take up the offer.
Spoon, I can rant with the best of em. And I agree it would be nice to see what we would get offered for the 5%, but now is not the time to discuss it. That particular thread has been done to death and at this stage even NCM/GGP haven't a clue about what it's worth. So best not to guess.
ATB
Can see why you are called Marmite! You either like it or you hate it.