The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
There are many options to financing one could be a Earnout
An earnout helps eliminate uncertainty for the buyer, as it is tied to future financial performance. The buyer pays a portion of the cost of the business upfront, and the remainder of the cost is dependent upon if future performance targets are met. The seller also receives the benefits of future growth for a period of time. Different financial targets such as net income or revenue may help determine earnouts.
For the buyer, an advantage is having a longer period of time to pay for the business rather than all upfront. In addition, if earnings are not as high as expected, the buyer does not have to pay as much. For the seller, the advantage is the ability to spread out taxes over a few years, helping to reduce the tax impact of the sale.
I think the not knowing or getting a rough time on the completion of the de-watering has made investors nervous .I personally believed the statement ( a temporary pause in decline development ) would be 2-3 months maximum not 6 months and over .They have completed two shallower aquifers at vertical depths of 50 and 250 metres with out any issues .The sooner Shaun can give an estimate when the decline will restart the better .
The first and most important buy is the 70% because this will keep climbing in value, The long it takes to sell Telfer this will keep going down in value .Taking this into consideration a deal for the 70% and Telfer may be on the table a quick smooth transaction all tied up in one is good for both seller and buyer I don't think Newmont have any obligation to sell to the highest bidder but they need to do what's right for Newmont and for all the staff employed at Telfer this is what they say about Telfer in there report.
Telfer, Australia. (100% owned) Telfer, located in the East Pilbara region in Western Australia, approximately 280 miles (450 km) southwest of Port Hedland, is an open pit and underground operation. The operations comprise 30 mining leases and
four general purpose leases which cover 67,368 acres (27,263 hectares). The main mining leases expire in 2024. Gold and copper mineralization is contained within narrow high grade reefs, pod-like mineralized bodies, sheeted vein sets and low grade
stockworks hosted by Proterozoic sedimentary rocks. Copper mineralization is also contained within chalcopyrite, chalcocite and bornite sulfide species. Process facilities include two processing trains, each comprised of a SAG and ball milling circuit, a flash
flotation circuit, gravity recovery circuits, a copper-pyrite flotation circuits, a carbon-in-leach plant, counter-current decantation circuit, concentrate dewatering and load out, tailings dewatering, carbon recovery and elution circuit and supplementary dump
leach. Gold recovered from the gravity circuit and gold eluted from carbon-in-leach and dump leach carbon are recovered via electrowinning and smelting in the gold room to produce doré. The underground mining mobile fleet comprises of seven underground
loaders and six trucks each with a 50-tonne payload. Telfer underground also comprises of an underground crusher and hoisting system capable of hoisting 900t/hr to the surface. The open pit mining fleet comprises 31 haul trucks and three excavators.
Telfer’s gross property, plant and mine development at December 31, 2023 was $345. Telfer reported no gold reserves at December 31, 2023.
----------------------------------------------------------------------------------------------------------------------------------------------------------------
Become a multi-commodity mining company of significant scale
-----------------------------------------------------------------------------------------------------------------------------------------------------------------
After sleeping through a hundred million centuries
We have finally opened our eyes on the sumptuous gold , sparkling with colour, bountiful with life
Isn't it a noble
we work at understanding the ore body and how we have come to wake it up .
Telfer
The operations comprise 30 mining leases andfour general purpose leases which cover 67,368 acres (27,263 hectares). The main mining leases expire in 2024. Gold and copper mineralization is contained within narrow high grade reefs, pod-like mineralized bodies, sheeted vein sets and low grade
Telfer’s gross property, plant and mine development at December 31, 2023 was $345. Telfer reported no gold reserves at December 31, 2023.
Telfer, Australia. (100% owned) Telfer, located in the East Pilbara region in Western Australia, approximately 280 miles (450 km) southwest of Port Hedland, is an open pit and underground operation. The operations comprise 30 mining leases and
four general purpose leases which cover 67,368 acres (27,263 hectares). The main mining leases expire in 2024. Gold and copper mineralization is contained within narrow high grade reefs, pod-like mineralized bodies, sheeted vein sets and low grade
stockworks hosted by Proterozoic sedimentary rocks. Copper mineralization is also contained within chalcopyrite, chalcocite and bornite sulfide species. Process facilities include two processing trains, each comprised of a SAG and ball milling circuit, a flash
flotation circuit, gravity recovery circuits, a copper-pyrite flotation circuits, a carbon-in-leach plant, counter-current decantation circuit, concentrate dewatering and load out, tailings dewatering, carbon recovery and elution circuit and supplementary dump
leach. Gold recovered from the gravity circuit and gold eluted from carbon-in-leach and dump leach carbon are recovered via electrowinning and smelting in the gold room to produce doré. The underground mining mobile fleet comprises of seven underground
loaders and six trucks each with a 50-tonne payload. Telfer underground also comprises of an underground crusher and hoisting system capable of hoisting 900t/hr to the surface. The open pit mining fleet comprises 31 haul trucks and three excavators.
Telfer’s gross property, plant and mine development at December 31, 2023 was $345. Telfer reported no gold reserves at December 31, 2023.
Newcrest give GGP a 50m loan so its possible Newmont could also loan GGP part of the money needed to buy or defer the payment . A smooth transaction and guaranteed sale is better than someone pulling out of a deal at the 9th hour things then get very messy and expensive .
If Newmont want to sell to GGP they do not have to sell to the highest bidder. There reputation and welfare of the work force have to be considered when selling any asset, If they sold Telfer or Havieron to a company that then cuts the work force or ends up in administration it will reflect very badly on Newmont and in turn on the share price which is not good for the share holders .I would think the Newmont board will take a serous offer from GGP as a done deal . GGP may have planed for this and have an offer prepared .
JORC s 5
Searching for the next big gold/copper deposit Chief day sets he's sights on a small processing plant When he catches a glimpse of the massive creature and all 20m million ounces (an approximation), he staggers back into the office and utters t "You're gonna need a bigger mill "
Newmont confirmed on Friday that it plans to sell Newcrest’s share of the Telfer mine in Western Australia.
Who also owns the mine?
The expectation is that the most likely buyers are Regis Resources or Gold Road Resources.
And what makes these the most likely buyers of a mine at the end of its life ?
The biggest problem is the time given to interested parties to complete due diligence ,GGP need to move very quickly .The decline will start again very shortly and it will not take long to hit the top of the ore body Newmont could at any point change there mind just like Newcrest did when they put Telfer on the market in 2015 .
Https://www.allens.com.au/globalassets/pdfs/campaigns/allens_mine-rehbailition-and-closure.pdf