Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Just for reference ...
The Telfer gold mine was expanded in 1991, and in June 1995, the mine reserves were 3.8 million troy ounces, with resources at 7.3 million troy ounces. The annual production was 370,000 to 380,000 troy ounces of ore. In 1997, the mine reached the milestone of having produced 5 million ounces of gold.
The beauty of us holding out for the JV scenario in my opinion is we will get to see Havieron in her full glory. As this happens and people start to realise that we will be a cash generating machine then the SP will react accordingly and anyone who wants out can easily sell up at that point and probably get a similar or better price than we would get in a takeover scenario.
It's just gonna take some more time and patience
I am with you Paddy, I don't for one second think GH or the BOD will be tempted by a quick cash offer now, when within 2 years, Hav could be generating a huge cash flow into GGP..
Imagine GGP having the resources at it's disposal to really concentrate on exploration, without any dilution etc..
I have never been a trader, and maybe look at GGP, as a longterm potential Star, rather than just a one trick Shooting Star.
Stay well guys, hold for Gold
Although NCM might be coming under pressure to increase their gold supply quickly - their SP has suffered and they are becoming increasingly copper dependent, which has crashed due to the covid19 slump. And the best way to get it onto their books properly, and where it's more transparent for share holders, rather than through any JV etc, would be a buy out at a lower price than GGP might get in the long term, but still an attractive one nonetheless. Cheers.
Yep that's the great unknown isn't it?
Good answer and I appreciate it. It's the old conundrum: 1 in the hand is worth 2 in the bush......
Dont forget the other licenses in the area could well be just as fruitful as haverion. It's my opinion that newcrest will be very happy with their junior partner
Flashy, that’s GGP’s decision but if they are looking at long term profitability then ... they can either stay as a Jv or hold out for a mind blowing offer ... GGP will know as much as Newcrest what is down there ... all in my opinion of course !
I agree Paddy .. especially as the initial costs will be a lot lower than normal due to Hav’s location to Telfer. I am willing to wait a couple of years for this, as it would be a seismic shift in the share price ...
Paddy, your comment also supports a more sudden buy out by NCM as well - they might decide to take the whole lot at a lower price (as reserves not all calculated) rather than prove everything up over the next 2 years. They already have a good idea of H - they've advanced their exploration of it with extra rigs, and if there are indications that it's bigger than thought they might think let's just snap it up and add that gold to our portfolio - which is in decline at the mo. Fingers crossed.
Lenz - that has always been my preferred option 'but' Newcrest might not want a junior partner when it actually comes to it. In my honest opinion if we can raise the cash to fund our percentage of the mine development then it is literally a license to print money for the lifetime of the mine at Havieron and if Newcrest want 100% of it for themselves then it should put us in a strong negotiating position.
Some people are saying that we are in a weak position as Newcrest are our only option but if we show we are prepared to sit and wait for the mine development (and remember Newcrest need to expedite this) then they will be forced to come up with a decent premium to persuade us to sell up.
I have faith in GH & the BOD to get the best deal for the shareholders in the long run.
GLA - Paddy
Paddy .. going by that in my opinion it would be crazy for GGP to sell their final stake in Hav. As in just a couple of years the returns on this ( if the figures we believe 20/25m Oz ) turn out to be correct then that 25/30 % could be worth billions !
No worries ... as ever Paddy clears the fog !
There's a paragraph right at the bottom of the Farm-In RNS that explains the 'Right of First Refusal" concept.
Right of First Refusal: If Greatland receives a bona fide offer from a third party purchaser to farm-in or otherwise acquire all or part of its right, title and interest in the Remainder Tenements, the Company must first make an offer on the same terms to Newcrest. The right of first refusal will only apply and be binding on the parties (a) in respect of any area of Tenement E45/4701, during the Farm-In Period and for the term of the Joint Venture Agreement; and (b) in respect of Tenements E45/4512 and E45/4928, for the duration of the Farm-In Period.
Also it's quite clear in there (IMO) that they do intend to toll-treat the ore at Telfer - whether this comes to pass or not is another matter - but see the following pasage.
The current intention of both parties is that, subject to a positive Feasibility Study outcome, the ore from the proposed Havieron Joint Venture will be toll processed at Newcrest's Telfer Gold Mine ("Telfer"), which sits approximately 45km to the west of Havieron, delivering material economic and operational benefits for both parties. These include:
o lower upfront capital costs (no requirement to build a new processing plant);
o ability to leverage all existing infrastructure at Telfer (roads, airport, power, water);
o reduced time to production and first cash flows; and
o potential for a significantly higher net present value for the project than if a new processing plant and supporting infrastructure was required.
ATB - Paddy
I misunderstand as I sometimes tend to do
thanks
Lenz - That's not the point I am making. I should have been clearer. GGP assert that NCM have 'first refusal' over the remainder of the Hav licence. The suggestion is beyond question, that is there's no intent on GGP's part to JV with NCM in taking this to production. GGP do intend to monetise all their licences in their possession, if possible
schemiel - 'the remainder of the Havieron license ' refers to the area not covered by the 12 blocks included in the 'farm-in' IMO.
All the Scallywag prospects are in the Havieron license area
ATB - Paddy
first refusal
noun
the privilege of deciding whether to accept or reject something before it is offered to others.
"group employees have first refusal on the tickets"
No the way I read it they have first refusal .. they can make the first offer but that doesn’t have to be accepted .. unless I am reading first refusal wrong but I don’t see that as being a guarantee that they can buy it !
During the Farm-In period, Newcrest will have a first right of refusal over the remainder of Greatland Gold's Paterson projects (Black Hills, Paterson Range East and remainder of the Havieron licence)
'remainder of the Havieron licence'. I can only assume that this means the 5% and the remaining 25%?
In effect, NCM has the contractual right to takeover the company's entire asset base. Newcrest may as well purchase the company's equity outright