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SD has made it clear. He wants to create a multi billion dollar multi asset company. You don't achieve that by selling out your only asset that is likely to go into production in the next couple of years.
"But, but, but he could invest the funds from the sales into progressing other assets"" Yes he could, but that won't achieve what everyone wanting the asset to be sold want it to achieve. The cash from the asset would not be distributed as a special dividend. A special dividend would leave GGP without the asset, or the funds from it. GGP would see the same net result from just giving Hav to Newcrest.
We don't even know how big Hav is going to be and thats the key thing.
"Oh well then just get a royalty as part of the sale" That makes no sense. Why would Newcrest agree to buy the remaining 25/30% so they have 100% and then agree to give a percentage of it back as a royalty.
The only way that makes any sense is for GGP to be bought out completely. And because we have so many other assets as well Newcrest wouldn't give us full value for those, as they wouldn't be able to justify it to their shareholders, and GGP wouldn't sell it for reduced value, as they wouldn't be able to justify it to their shareholders.
That said £2 a share, valuing the whole of GGP at £8.2billion would be acceptable to me
DGR, I can't disagree with that point of view.
SD called Hav a 'company maker' asset. He is not going to sell out willingly and do himself out of a job.
And if that was the case then why the recent tenement acquisitions?
This is all a smoke screen.
As a far wiser once said, "Smile and wave, boys, smile and wave..."
Let it all blow over you.....
Next week is going to be exciting. And the week after. And the week after that. And so on.
Maxwell
you might have missed my question some time ago?
Love it and agree with everything you say SoS.
THE FUTURE FOR GGP?
Here again is my take on Shaun's vision and long term strategy after his' Summer of Love' PR tour :-))
- I think NCM may find Shaun's background and experience in operational, business development, financial modelling, funding and banking useful and personally I've observed that Shaun seems to have a keen mind for optimisation related thinking
- Shaun’s previous experiences will be applied to GGP by looking to grow market cap, people and infrastructure, capabilities, systems, controls and organisational capabilities. Bring his disciplined overview in business to understanding own mining assets and to augment with other opportunities in the market to grow portfolio.
- Hav is the Launch/Foundational asset to develop GGP onwards from being just another explorer, Shaun hopes to be at the helm for a similar journey as he helped craft at Northern Star as their CFO (their market cap increased from £700m to £10bn over time).
- Has already employed a Health, Safety and Environmental Mgr, CFO and Group Mining Engineer and is further augmenting the exploration team with a 'core team' (not a cast of thousands) to act as 'good partners' with NCM to scrutinise, understand and contribute towards all aspects of the Hav project with other additions to the team.
- These additional personnel will also help to help develop skills across exploration and production areas for future growth, alongside managing and operating mines as stated in a podcast in July 2021
- More exploration in the next 12 months than the entire history of GGP
- Continue to 'upgrade' portfolio assessing projects through factors such as the scale/quality of potential deposit and accordingly deciding whether to consider junior partners or self-manage.
- Two key goals seems to be to focus on the Paterson Range where we have significant targets outside Hav inc. Juri JV with NCM and our own Scallywag program and then additionally Ernest Giles which he considers as a 'glittering prize in the portfolio' as stated in an interview in July 2021. UPDATE - he has since added and applied for new tenements and we have NCM exploring 3 new targets in the Havieron tenement and Artemis too now active at Apollo
*Additionally in a July 2021 podcast Shaun also listed these as Key milestones/catalysts to the hosts*
- PFS on Hav in second half of 2021 to support 'fast start'- UPDATE - it's now just a few days away :-)
- JORC update of Hav MRE inc. 12 months of drilling in early December
- DFS for Hav in 2022
- By 2023 we'll potentially be extracting ore and mining the project, and that optimisation studies and a drilling program in parallel would continue to define and explore the ore body
- All augmented by continued exploration in the portfolio
- A market cap that allows financial capacity to selectively add projects and exploration ground to upgrade portfolio
- Will have a team in place that can really optimise value from these projects.
- SEE ZORO’S LATEST ROADMAP FOR D
He won't sell us out, but he will sell for around £11.6bn
See you all at coutts... Lol
Haha spy see you in the Queue !
SOS, absolutely love that
“Smile and wave, boys, smile and wave..."
If only I could do that when the idiots arrive I’d be a much better person.
But as Orville used to say “I Can’t “
Child & Co Spy lol
This whole obsession with a supposed bid has totally unjustifiably dominated the chat today. This all came from perhaps careless wording by an analyst who probably has far less knowledge of, or interest in, GGP than many reading this. We all know that there is a potential of a bid for the company but there has been absolutely nothing recently to further the suggestion that it is at all imminent. In fact everything points in the opposite direction with the comments of the CEO and recent Board appointments. All LTHs will have had concerns that the price was being walked down by some entity to enable a bid on the cheap and that still might be the case but until we have some clear evidence that view is entirely speculative.
My view is that we should park this issue for now and concentrate on the massive newsflow coming our way in the next few months which should move the shareprice in the right direction. If a bid comes, so be it but it better be a good one and even then, given the size of the asset we have, a bidding war will be almost inevitable. A mouthwatering prospect!
So if the aforementioned bidding war did ensue then £2 per share would be the starting point? in that case if the bidding war gets out of hand the ultimate T/O pps could end up very special indeed!
@ Jones Richard. Still taking the happy pills I see.
You must have ramped at least 50 shares to my knowledge and it appears they all go belly up. Do us all a favour and stay away from this one. Thank you.
Re SD will not sell out?
The one and only way any outside company is going to successfully win a bid for Havieron is simply by buying NCM at the end of the day given NCM's almost complete 70% acquisition.
Would GGP be able to stop that now at such a juncture? anwser NO!, but GGP would still retain a 25-30% interest in Havieron no matter whom might win such a battle unless of course GGP were to be taken over in full and that's out of the question IMHO unless they offer us the private retail sector some serious Wonga, IMHO.
What is serious WONGA ? well lets just say £1.50 plus per share?
Just to add, so far the private retail investor owns a great chunk of GGP as Hydrogen has already alluded to.
Will be good to get the next BT update :O)