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Idiots are paying $70k for a bit of computer code. So we should expect gold to be multiples of here.
Pls do not explain what forms 'hedging' can take...It could well cause a meltdown then a realisation amongst one or two. I will just leave that there as I do not want to cause an issue amongst genuine holders.
This is all going the way of mine and my associates research and projections with respect to time.
Also, Those who talk too much usually do so because they are one or more of the following -
A Salesman
A Liar
Do not know what they are talking about
Have a nervous disposition
Hi All
Just a thought!
Shaun when he first was touted it was very early days I think about 3.6m Oz MRE on the radar and he has been building a team over the past couple of years to its current level!
Now this all happened well before Newmont takeover and knowledge of the sale of HAV/Telfer!
Should we not be asking ourselves the question why did they want to pile in for 25% of HAV and the other licenses?
Answers on a postcard please!
All the best Ben
Yes. But I was actually a little surprised to learn Newmont, and some bigger capitalised outfits, gave up on hedging a while back. I pointed out before, their hedging was a major factor in Telfer profitability, having gone against them.
If gold gets too expensive, then they buy silver. Silver always moves after gold and with more volatility and percentage wise much more than gold, that is the time to sell silver and buy gold as silver always reduces more than gold at the end of the cycle or bubble. DM
Hi CP, Newcrest hedged 75% of Telfer gold production to cover cost of the last cutback and now Newmont is paying the price and making sod all at Telfer at the moment. Not sure how long the hedge was for but at least 3 years i should think. Hedging is normal in the PM to ensure a minimum price, farmers have been doing that for hundreds of years. DM
I want the price of gold, precious metals and strategic metals to go up. Does make me wonder who’s going to afford it though at some of the future prices being touted.
Hi All I asked a question last week about the extra FCF with every $100/oz increase in the POG. Well, on the basis of a few responses we are now anywhere between $40/$150million a year better of since last week. I wonder what the real FCF will be when the POG gets to $5000/oz in a few years. The profit potential of GGP is truly mind blowing. ATB Speedy
As you would expect, there’s bits on Telfer, stats, throughout the Newmont Annual Report. (I previously found it useful to learn for my own purposes Newmont do not hedge the gold price)
https://s24.q4cdn.com/382246808/files/doc_financials/2023/ar/newmont-2023-annual-report.pdf
And, for example, a small summary of mine infrastructure at Page 56.
Best of luck.
@Tinners
You've hit the nail on the head there. On it's own, Telfer is too big a risk.
To make it saleable there needs to be some upside.
The only (potential, we still don't have a DFS and decision to mine) upside is ore from HAV, or rather their 70% of HAV.
So, not an easy sell to a 3rd party.
However, if they do find a 3rd party buyer, we have right of last refusal on the 70% of HAV (maybe even the stipulation in the JV re processing at Telfer at cost + 10% being preserved!).
So any 3rd party buyer could negotiate right up until we walk away with the whole of HAV, leaving them with a processing plant and problematic ore production at Telfer!
This is why we get the cheshire cat smiles and very excited execs!
We just need to work out the final price, what is included (legacy JV's + shareholdings in the area), and sort out how to pay for it - Simples!
Indeed RationalAssessor. Here's the Havieron plan...
https://minedocs.com/19/Havieron-Mine-Closure-Plan-2021.pdf
Afternoon All I hope you are all well!
To answer that question ‘if nobody wants Telfer’
Then I would imagine we get paid to take it , or they will have to pay massive costs to close it and decommission it!
Either way we should see the benefit!
All the best Ben
And if Telfer is too bigger risk that nobody wants it? Then what?
Nobody will dare put there name on it, this type of article is designed to encourage selling.
I’m happy to sell but not for 6p maybe for 60p unlikely definitely for 600p
Into the bin with you, you scoundrel.
I might quietly let you out again if you behave but if you don't behave I shall jolly well put you back there and, what's more, I shall tell everyone that you're back there, so there.
And, and, . . . and, I'll damn well tell everyone else that hasn't put you in the bally bin, to put you there as well. There, how do like that?
Ha!! Thought so.
Blighters
Ive been in this since 1.4 -2.2 days what a journey and lesson when i should have sold some at 38p.
But yes its all to come. In my view worse case 30-40p if we get taken out 50-80 as we are + another decent discovery £1+ And if we get the lot god knows.
Napthman - GGP could move from being an explorer to a mid size mining group overnight. It is mind blowing.
Dyslexic fingers
believe....
Rotherby.
I understand that, as soon as a mine is commenced, the MIning Act requires that a mine closure plan is created to demonstrate that the the mine can be rehabilitated successfully. I beleive that we have already created one for Havieron.
I also beleive that miners are required to update their mine closure plans on a regular basis (possibly yearly).
Take a read of this document:
https://www.dmp.wa.gov.au/Documents/Environment/REC-EC-112D.pdf
And to add with any of them the stick could het frozen frm trading whilst being concluded, and come back at triple or more