Notes from Interview with Callum Baxter - 06 Feb 2023
So, Newmont's just trying to get in front of that and I think it's great. Now if Newmont, Newmont, hang on, want to hang onto Telfer and the Paterson assets. That's fantastic. And potentially that want to buy Greatland’s or Greatland’s portion of Havieron in that process. So that's a win for Greatland. Alternatively, if Newcrest sorry, if Newmont don't want to pursue the Paterson assets and that's an unlikely scenario, but nonetheless I'd say Greatland would throw its hat in the ring to try and purchase those assets.
Well, a scenario is that Greatland would purchase those assets from Newmont and Telfer would become a central processing hub for Greatland and it would make Greatland a mid-tier gold and copper producer. So, a much larger entity which is again a win for Greatland. So really for Greatland, the scenario at the moment is win win.
If we buy NCM 70% of Havieron at fair market value they have to take into account what it would be worth without Telfer my view a lot less so a bargain price for GGP then you have to say what is Telfer worth without Havieron again a lot less and a bargain price or next to nothing when you take shutting it down into the equation
Do you think Newmont may try to build up a 30% stake in GGP over the next 4 weeks I don't think they have to build it directly so its possible to do it covertly . If Newmont are completely confident that the bid for Newcrest will go through then it would make perfect sense
Australian gold miner Newcrest has opened its books to US mining giant Newmont after receiving a sweetened takeover offer that values the company at $32 billion.
Newcrest in February rebuffed an earlier attempt from Newmont, the world’s largest listed gold company, to acquire its shares at a 22 per cent premium to their previous closing price, which would have valued the Australian gold miner at $24 billion.
However, Newcrest on Tuesday said Newmont had made a revised offer that implied a share price of $32.87 a share, marking a 46 per cent premium.
“After assessing the revised proposal, Newcrest has agreed to grant Newmont the opportunity to conduct confirmatory due diligence to enable it to put forward a binding proposal,” Newcrest said.
“Newmont has requested exclusivity during the due diligence period as a condition of the revised proposal and Newcrest intends to grant exclusivity on acceptable terms.”
Newmont has indicated that the new offer represents its “best and final price” unless a rival offer is made. Canadian gold mining giant Barrick Gold – widely considered to be a possible rival suitor for ASX-listed Newcrest – has indicated it is unlikely to challenge.
Based in Denver, Colorado, Newmont has mining operations across the globe spanning gold, copper, silver, zinc and lead. It has two major Australian gold mines – Boddington in Western Australia and Tanami in the Northern Territory.
Melbourne-based Newcrest owns gold and copper mines in New South Wales, Western Australia, PNG and Canada, and holds equity interests in gold assets in Ecuador.
If Newmont’s $32 billion bid for Newcrest succeeds, it would mark the biggest takeover in the history of the gold mining industry.
Revised non-binding indicative proposal received from Newmont
Revised conditional and non-binding proposal is at 0.400x exchange ratio and, in addition, permits Newcrest to pay a franked special dividend of up to US$1.10 per share
Represents an aggregate implied value of A$32.87 per share to Newcrest shareholders1
Newcrest has agreed to grant Newmont the opportunity to conduct confirmatory due diligence to put forward a binding proposal
Newcrest Mining Limited (ASX, TSX, PNGX: NCM) advises that it has received a revised conditional and non-binding proposal (Revised Proposal) from Newmont Corporation (Newmont) to acquire 100% of the issued shares in Newcrest, by way of a scheme of arrangement.
Under the Revised Proposal, Newcrest shareholders would be entitled to receive 0.400 Newmont shares for each Newcrest share held.
In addition, the Revised Proposal permits Newcrest to pay a franked special dividend of up to US$1.10 per share2 on or around the implementation of the scheme of arrangement. In aggregate, the Revised Proposal represents an implied value of A$32.87 per share to Newcrest shareholders1.
Following Newcrest's announcement of 16 February 2023, Newcrest and Newmont signed a non-disclosure and standstill agreement. Newcrest subsequently provided Newmont with access to limited, non-public information on a non-exclusive basis to determine if Newmont could provide an improved proposal that appropriately reflected the value of Newcrest.
The implied consideration which would be received by Newcrest shareholders under the Revised Proposal from Newmont, when aggregated with the franked special dividend, represents an increase of 16.0%3 to Newmont's initial proposal (0.363x exchange ratio) and represents:
an implied Newcrest share price of A$32.87 per share1;
an implied equity value of A$29.4 billion and enterprise value of A$32.0 billion for Newcrest4;
31.1% ownership of the combined group by Newcrest shareholders on implementation;
a 46.4% premium to Newcrest's undisturbed closing price of A$22.45 per share on 3 February 20235; and
a 41.2% premium to Newcrest's undisturbed 30 day volume weighted average price (VWAP) of A$22.22 per share on 3 February 20235,6.
Based on: 1) exchange ratio of 0.400x (with implied Newcrest price calculated using Newmont's closing price on the NYSE of US$52.05 per share as of 6 April 2023 and an AUD:USD FX rate of 0.667 as of 6 April 2023); and 2) a franked special dividend of up to US$1.10 per share.
2 Newcrest expects to have sufficient franking credits available to frank a dividend to an amount of US$1.10 per share. The franking of the special dividend amount is subject to change based on timing of completion of the transaction, business performance, foreign exchange movements and ATO ruling.
3 Based on an aggregate implied offer ratio of 0.4211x, which assumes the US$1.10 per share dividend is paid in full and reflects spot AUD:USD FX rate of 0.667.
4 Equity value based on: 1) excha
Maybe this can be used at Havieron
The Tanami mine
Newmont Australia has operated the Tanami gold mine since acquiring Normandy Mining in 2002. The underground mining infrastructure and operation is located at Dead Bullock Soak (DBS), where presently we are mining the Callie orebody. The processing infrastructure is located 40 kilometers to the east of the mining operations at the “Granites”. Ore is transported by road train from DBS underground to the processing facility. In 2019, Tanami produced 500,000 attributable ounces of gold and processed 2.6m tons of ore.” The operation takes place on land owned by the First Nations Warlpiri people, who have formal agreements in place with Newmont to share value and protect their land, heritage and culture.
Significant scale
The Tanami mine has recently been the focus of a significant investment by Newmont – as Vince highlighted, this project received full funding in October 2019 and is already under execution. “The Tanami Expansion 2 Project (TE2) is an enlargement of Newmont’s Tanami gold project, 530km NE of Alice Springs in the Northern Territory,” he went on. “The main scope of the project involves the construction of a Headframe and a 5.5m diameter, concrete lined, vertical hoisting shaft to a depth of 1460m below surface. The shaft will be used for the transportation of ore and personnel and will accommodate support services and cooled ventilation air to support the further development of the mine at depth. The project includes additional scope for the existing Mill facilities at Granites, where we will do some brownfields work to increase processing capacity.”
The vertical shaft that Vince referred to is a key part of the TE2 project, as creating this access, rather than using the existing decline from surface, will allow Newmont Australia to mine deeper, and extend the resource and mine life. “The ore will be brought up vertically via skips rather than trucking the ore out which is the current process
Antipa Minerals unearths two new gold-copper discoveries in greenfield drilling at Minyari Dome
https://www.asx.com.au/asxpdf/20230306/pdf/45mbrdgczzbxq2.pdf
What Callum Baxter said 29minuets in
https://www.youtube.com/watch?v=tyjDRNi0D58
So if it is at 1800m even if we slowed down to 3m per day we would still be on target for march 2024 and that what makes this news important We do not know what we may come up against over the next 1000m but we have meters in the bank so to speak and that will keep the project on target I hope.