JV, is it really great for GGP?30 Nov 2020 00:24
In simple terms NO as I understand.
Why would you give such a big area for peanuts?
Does the first refusal mean that NC can pit any price for JV or the projects?
I would love to know if GGP went out to see what others could have offered for this JV.
Now why I think this deal doesn't make sense offering 75% stake for peanuts.
1. They have done a survey (at PRE and BH) and if their survey results are in line with survey at HAV and its drilling results at Hav, then GGP should be confident of their survey results and find.
2. Some people say PRE is huge which I agree but all GGP was required to do was drill few holes and prove that there is some gold , to be in position of getting a much much better deal. They could have done that using small part of $50m. I suppose they had plans to drill that anyway.
3. This deal is much worse than Hav deal last year. Why would you do that? GGP is in much better position now that in 2019 when they signed Hav JV.
4. I would have expected some upfront payment on new JV and smaller percentage of NC share especially with the amount expected to spend by them.
5. BH is very close to scally targets, surely if something positive is there they it can most likely to extend to blackhills too.
For once, I don't think GGP have made a good decision and I think they have played into hands on NC even though GGP should have been in lot better position now.
I must admit, I am very disappointed ted with this. You have potentially given away billions of pounds worth of gold mine for peanuts - make no sense at all.
Looking forward to hear the explanation for GH tomorrow morning
GLA
Sign In
Follow the stocks
