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Thanks TMT for your comments. So we agree that the next set of drill results could be less than good along with no finds in other tenements which may peg the price back some and effectively leave us with "what we already have". Your other "risk" relating to a early and "low" buyout of either GGP as a whole or just Havieron is (in my mind) not a risk but a missed opportunity and you have clearly recognised that by purchasing NCM you are covered for that missed opportunity.
I agree with you that if there is a buyout, then NCM will be front of the queue or will win through toll processing at Telfer for another major. I also feel that GGP will not be bought out as awhole but simply the Havieron piece - it would be too difficult to determine a sensible value for the "non-Havieron" parts of GGP and could not be justified by any potential purchaser. In my mind, whatever happens over the coming year, it would take all the planets to line up for us to be in a worse position than where we are at present.
Thanks again and ATB
RA
In your dreams 1gandhi,it's never going to happen.
@gandhi "TMT. What if NCM is bought out on the cheap"
This is not a risk I consider likely enough to factor into my thinking, but be my guest, LOL.
@RA, well, maybe only 8 of the planets lining up (is Pluto still a planet? I can never keep up).
I agree that the "risk" of an early buyout is better described as a potential missed opportunity, though in the final analysis that and a "risk" can both be things that limit upside. But it certainly isn't a downside risk.
I don't agree with your view that NCM wouldn't buy out GGP entirely, though. I'm not saying they will but there's no real reason to assume they wouldn't, either.
We've just seen that it was worth it for GGP to acquire Rudall. And Rio was trying to get in there as well. That's a major trying to grab these unproven tenements. Why wouldn't NCM be glad to acquire unproven tenements? Obviously, there's some risk in doing so, but let's put that risk in perspective.
Suppose that by the end of the year we know enough to guess that GGP's share of Hav is worth 25p, and both GGP and NCM agree. So SB goes to GH and says, "Ok, but how would you feel about a buyout?" GH says, "Scal might be worth a lot. Rudall, too." SB says, "Ok, add another 10p." Now, we've got a 35p offer on the table. We're being paid 10p for Scal when, for all we know, it's not even economical to mine. Should GH take it? A 10p premium for shareholders for Scal/Rudall/everything else? A year ago, if offered 10p for everything, most shareholders would have said, "Yes!"
That 10p premium is about £400 million for NCM. Real money, sure. But it's really just a premium on Hav, with everything else tossed in. NCM market cap is around £18 billion.
There are many permutations to consider about our near future for GGP and Newcrest, but how about Rio, whom Deutsche Bank advised to get into gold over a year ago, pounces on Newcrest and by default almost, snatches GGp for a lower than expected premium?
Suffice to say Newcrest has hit the jackpot with Havieron. They've spent sweet FA to gain operational, direct and majority (70% + 5% at FMV) access to a T1 discovery for next to nowt. Add in the meagre capex to development and production and then ask yourself how much would Newcrest have to pay to buy a fully developed,producing mine at Havieron with say a 75% stake? US$1.5bn-2bn?...Throw in the operational saviour and earnings boost for Telfer and the lower AISC from Havieron and Newcrest does have financial leeway to take out GGP in full or snap up bits of GGP as exploration develops at our various other tenements
Yes, too many permutations. RIO and NCM are dwarfed by BHP. I think there is more risk of NCM being taken over , or merging, than of GGP being taken up. Relatively, NCM has more assets worth taking over than one (albeit massive) potential patch of desert. Havieron is a wonderful asset, but it is a relative minnow and I cannot see anybody buying the whole shop just to get the Smarties. If our other assets are proven up that is another story. But even then those would have to be amazing results that demonstrate a world changing regional mineralisation from Hav through SW. The majors are interested in economically viable assets. And unless you can prove that what you have is attractive to them, then if you are lucky you get EG - they will have a sniff, but if the economically viable numbers are not there they will walk. NCM are thrilled that they have got an amazing asset on their desperate Telfer doorstep - the planets and all their moons lined up at the same time as the POG gods smiled down. I have faith in our BOD (with their hundreds of millions of shares) to develop things that may make us an attractive takeover opportunity. But not until Havieron's future has been settled with NCM.
And then GH will pull a flamin' dingo out of a hat and we will all be "WTF...???!!!" and cheering, because he has done a blinder yet again.
GLA
TMT - You make a strong argument for a "sell-out" to be recommended by the GGP BoD. This is where we, as PIs have to have confidence in GH and CB to have "our" interests at the centre of their decision making and their recommendations. They would need to make a judgement of fair value based upon the risks/rewards available and the relative probabilities on both sides given the information that they have at the time of the offer/deal. We're then reliant on them determining what is the SP which would be acceptable to the owners of 50% of the shares of GGP. Whatever the BoD recommends, there will be some shareholders who will determine that the deal is a steal and some who will argue that they have been sold down the river. If someone were to offer me 35p now for my shares, I'd take it, however in 8 months time we will know a lot more and I may not be as keen to part with my shares. I guess we will just need to see how this all develops, how the information reveals itself and whether there is any offer placed on the table.
I guess that my main thought on why NCM would not take out all of GGP is that NCM want to remain and focus on operating mines on proven locations - that is their sweet spot. They will allow the numerous small and agile prospecting companies to continue to find the locations and then purchase those locations once they have been proven. There is one thing which would be certain; if GGP were to be bought out by a big conglomerate - their effectiveness as a prospector would decline significantly as the conglomerate governance would stifle their agility and their ability to make bold decisions would go out of the window, the benefit of owning GGP would be simply for the tenements and not for any future prospects. Just my feeling.
These next few months are full of a number of unknowns as detailed in the original post but I, for one, am comfortable that the potential upside far outweighs the downside and only time will tell how good a decision it was to invest.
Most exciting and interesting share I've ever owned
ATB
RA
Guys, there's been an awful lot of something to get to nothing today. Just sit back and enjoy the ride, take every bit of information as it comes. Things change day to day in every setting of life. Remember to always adapt. But you have to always try and enjoy the ride at least rather than the goal :-) Take it easy (sunglasses emoji)!!
T7T
exploring ideas as we do isn't about GGP per se, but a learning process/curve...the more we learn here the better will be our analytical skills when we leave here and search for other stocks to buy....
it's the whole point of a public forum
Schlemiel
When I leave here I won’t be buying anymore stocks ;)
GL
RA
Well said alot of discussion is based on hope and could be. What we do know as you said that the upside is far more than the downside. Infact its like giving it on a plate. The rns' are clear but its the direction of the company will there be a takeover etc. We all want the best possible deal for our returns. What I do know is that we will easily pass 15p very shortly. The next set of reports im hoping will reveal more about any possible take over. This could rocket to £££s and ggp may be the one of the penny shares that reaches great heights. Rags to riches so far so good lets not be bothered about the daily run let us wait for the drill results which so far have been exceptional
Schimiel
Same here my story is that bricks n water is much better that stocks. Im counting on ggp big time to get me in to retirement.
This is great reading everyone.
Everyone cool if i use what has been said to make a page on GGP.
It's well balanced, and could be helpful to many many people,
BR
Sorry i meant chippy
If ggp.does not do well then better stick to.my fish and chips mind you cods very expensive come on ggp.give me what i want and will buy my local chippy out hahaha bit of banta
Good night god bless
We need to stay safe during these terrible times covic 19 no good ggp.if we drop tomorrow.
Haha soundman1
Cod went down in price this week :)
GL
I've got to say that this has been a fantastic topic. It has everyone talking about the risks and benefits of having shares in GGP. No animosity and just plain talking. In 2018 I bought into GGP at 0.98 pence and with hindsight I should have bought more, but have now ended up paying 'a lot of money' for another 180,000 shares at 12p; This is mainly just because I joined this site and read the analysis and positive posts on here.
I have realised since being on here (and this is said without disrespect) that there is a lot of emotional attachment by some of the members on this board. But I realise I have now become the same myself and find I'm online everday checking the board and even this week I'm on holiday with the Wife in Dorset (who is now in bed) and I'm checking in on the board.
I do think RA's initial post was a good arouser to get LTHs and newbies into good discussion and appreciate all the infusion contributed by all.
Lets hope it's upward on onward for everyone, no matter if LTH or newbie.
By far and away the most constructive and informative thread I have seen on this board in the two years I have been following here.
Thank you Rational Assessor and all the other contributors.
Goodnight all
Risk of T/O GGP v buy out of Haverion.
Extract of comments made by Sandeep Biswas CEO Newcrest as reported by Reuters 25 Feb 2019:
HOLLYWOOD, Fla. (Reuters) - Newcrest Mining Ltd Chief Executive Sandeep Biswas said on Monday his company would pursue a potential acquisition only if it were the right value for investors, adding that he would prefer to buy assets rather than whole companies.
“We are happy to do M&A if it’s the right value for shareholders,” Biswas said at the BMO Global Metals & Mining Conference.
“The entire focus in not on the size of ounces (in a potential deal). It’s on rate of return for our shareholders.”
So I would infer therefore that he would prefer to buy Haverion rather than whole of GGP.
https://www.reuters.com/article/us-mining-conference-newcrest/newcrest-ceo-says-happy-to-do-ma-if-right-value-for-shareholders-idUSKCN1QE2CN
Read this morning that Newcrest had removed their represenattive from the SOLG board, disagreement about funding. NC wanted it raised through issuing equity (dilution) and SOLG going for finance deal.
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2150-tsx/solg/79258-solgold-plc-announces-resignation-of-director-2.html#:~:text=BISHOPSGATE%2C%20LONDON%20%2F%20ACCESSWIRE%20%2F%20June,today%20resigned%20as%20a%20Director.
Interesting that NC had built up a stake in the company.
I have added RA's updated post to GGPHelp.co.uk.
00.17 CountTheChickens - "By far and away the most constructive and informative thread I have seen on this board in the two years I have been following here".
Seriously, you cannot have been here 2 years to have made this comment without at least mentioning in tandem posts from MagicTrades, Paddy etc etc
We are slowly creeping up
@RA, are you my son? I agreed so much with your last comment that it sounded like things I'd taught him.
No, you aren't. He doesn't agree with me as much as you do, LOL.
I guess I'll just close by saying that I also don't think NCM really wants to buy out GGP. They might want to buy GGP's share of Hav, but not even sure it's that important to them to do that.
If NCM buys out GGP, it would most likely be as a "white knight" if someone else (Rio?) tries to horn in on the situation by trying to buy GGP. If that happened, I think NCM would step up. And I think they are in a better position, because of Telfer, to win that bidding war.