Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I would think that giving the fact that Newmont are so close to taking over the MRE will be given to them as they need to review it ,they will have there own experts to look at the information pointless it going to Newcrest at all.
It will take a little longer with the promised optimisation of the combined entity’s portfolio of operating assets and potential projects. Palmer has promised to generate $US2 billion in cash proceeds from this process, but he says there’s no rush to put assets on the sale block.
“We’ve got the time and space to do that in a thoughtful, considered way.”
If your in any sort of partnership then communication is essential so when Newcrest did not produce a MRE and GGP are not consulted you have to question what kind of partner are we involved with it seems to me NCM are Self-serving (working or acting for your own advantage) In my view the sooner the merger is completed the better hopefully we will get a JV partner that communicates and is on the same page .
Australian gold miner Newcrest Mining (NCM.AX) on Friday said Newmont Corporation (NEM.N), its suitor for a proposed A$26.2 billion ($16.68 billion) buyout, had received all government regulatory approvals required for the deal to go through.
Sale of non core assets , When Newmont take full control of NCM how long will it take them to start the selling of assets ? Which askes the big question will they put the project on hold or will we be at the top of the gold shovels ready by the time any deal is completed.
Upon completion of the Newcrest transaction in the fourth quarter, the Australia region will have a significantly increased operational and strategic importance to Newmont’s global portfolio. To support this, Suzy Retallack will take on the responsibility of Executive Australia, in addition to her current role as Chief Safety and Sustainability Officer (CSSO) and will be based in Perth, Australia. Suzy will represent Newmont with key industry bodies in Australia, playing a role in policy development and advocacy, while prioritizing strategic activities that unify and enhance the existing strong reputation of Newmont in Australia.
Newmont 's President and Chief Executive Officer, Tom Palmer, said:
“These new appointments will allow Newmont to safely and efficiently make decisions to deliver the integration of Newcrest and ensure long-term world-class leadership across the larger business. Our future expanded portfolio will require strong and experienced leadership to support and care for our people, neighbors, stakeholders, and assets for years to come.”
On May 14, Newmont announced its definitive agreement to acquire Newcrest. The combination would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favorable, low-risk mining jurisdictions. Upon closing of the transaction, the combined Company would deliver a multi-decade production profile from 10 large, long-life, low cost Tier 1 operations, and increased annual copper production primarily from Australia and Canada. The combined business is anticipated to generate annual pre-tax synergies of $500 million, expected to be achieved within the first 24 months, while also targeting at least $2 billion in cash improvements through portfolio optimization in the first two years after closing.
Https://www.asx.com.au/listings/upcoming-floats-and-listings
FY23 Performance
Telfer’s lower gold production in FY23 was driven by lower mill throughput and
lower grade.
In November 2022, the Newcrest Board approved expenditure of A$214 million
(~US$150 million) for the West Dome Stage 8 (WDS8) cutback. The cutback
underpins the continuity of operations at Telfer, with the mine now expected to
continue operations into early FY25.
(3)
First ore production in WDS8 was achieved
during the December 2022 quarter with mining rates in the cutback performing
above expectations in FY23.
AISC of $1,633 per ounce was higher than FY22 primarily due to lower gold sales
volumes, a lower realised copper price, an increase in production stripping activity
relating to WDS8 and additional costs relating to inflationary pressures. This was
partially offset by higher copper sales volumes and favourable FX movements.
Free cash flow of $9 million was 91% lower than FY22. This reflects lower earnings
(EBITDA) and increased production stripping activity, partially offset by favourable
working capital movements. Excluding hedge losses of $76 million in FY23, Telfer’s
free cash flow would have been $85 million.
How long will it take to work out fair market value remember the 5% .There will be different views on value, will a independent assessor be employed and do they put the project on hold or start production why its getting worked out
June 22, 2023
Despite changes in ownership at Havieron with Newmont, the world’s largest gold miner, taking over from Australia’s Newcrest, Day remains confident it won’t impact ongoing operations. He reassures that the relationship with Newcrest remains solid and the Havieron ore will still be processed through the Newcrest-Newmont Telfer mill.
Town hall
He said the jv is highly unlikely but he doesn’t know how it’s going to play out.
Every one keeps saying they will sell Telfer and 70% of Havieron and we have the last right of refusal. We have the last right on the 70% only which has to be valued totally without Telfer so on the basis that we construct a processing plant and all the permits needed, and time involved so what is the 70% worth very little without Telfer ,what is Telfer worth negative value on its own because of this catch 22 situation Newmont cannot sell there 70% GGP would have to be fools to agree to buy Telfer and there 70% in a package .We hold all the cards if they want out they be better given it to us free and taking a royalty for the next 10 years
The biggest issue Newmont have is no one will take Telfer all the major mining company's have share holders to answer to when buying assets , If Newmont don't want Telfer and 70% of Havieron they will want a good explanation to why and will take some time to do there due diligence also the costs to them is not any small amount .Then you have to consider in 2015 they put Telfer up for sale with no takers then so retained it saying we are investing in growth, it should have been offloaded then why it was worth something its now becoming a millstone so if Newmont want to divest there 70% and Telfer they could finance GGP with a low cost loan ( 500m )which we can start paying back when we start producing this would solve all the problems and both party's get what they want or they can sell at a reduced price . What if there is no one interested ,Newmont and GGP will most likely have a different value on the assets just like the 5% which took a long time to value and again its all racking up costs .
If Newmont decided to sell will it be like the 5% ? Will an independent valuation be needed or can Newmont put any price on there 70% ? then the value of Telfer has to be on its own which is why this was not done in the Newcrest independent report as its value would be negative If someone else is interested the due diligence will take time ,by the time this is sorted out we will be taking gold out of the ground It would be better to continue the joint venture and see what unfolds Newmont don't need to sell assets that quickly unless they are strapped for cash .
This may be an option for Havieron
In 2019, following the transformational acquisition of Goldcorp, Newmont became the world’s leading gold company and a producer of copper, silver, zinc and lead. Newmont gained this position through its own assets, Goldcorp’s world-class mines and the formation of the Nevada Gold Mines joint venture with Barrick, which created the world’s single largest gold producing complex.
Energy, Oil & Gas focused its attention on the organization’s Australian operations, and spoke to Vince De Carolis, General Manager Tanami for Newmont Australia, to get some more details of what is happening ‘down under’.
“Newmont Australia was Australia’s leading gold producer in 2019, producing around 1.431 million attributable ounces of gold and 64 million pounds of copper,” he began, before continuing with s ome further details of the mining operations. “Newmont Australia’s 100 per cent-owned operating assets include Boddington in Western Australia and Tanami in the Northern Territory,” he explained.
“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 w
No one will take up the options until the Sp is well above 12p no point as you can just buy shares at that price on the open market .I would have expected there to be some insider share purchases over the last few weeks ( if they are allowed )so when the Sp reaches say 18p the options are taken up and they sell enough shares at 18p or above to cover the expense so you are not using any more capital makes sense financially
In late February 2020, Antipa entered into a farm-in agreement with established gold miner Newcrest Mining in respect to a 2,260km2 portion of Antipa’s southern landholding in the Paterson Province, which has been named the Wilki Project.
The agreement caters for a staged farm-in process whereby Newcrest Mining must spend an initial $6 million on exploration within two years of commencement; a further $10 million within five years of commencement to earn a 51% interest; and a further $44 million within eight years of commencement to earn a 75% interest. In certain circumstances, Newcrest Mining can extend this earn-in period by up to two years. The initial $6 million minimum exploration expenditure milestone was satisfied in November 2021 and Newcrest elected to proceed to the next stage of the farm-in.
Effective from 1 July 2022, Newcrest became manager and operator of the Project.
Antipas Minerals Limited (8.9%), an Australian mineral exploration company listed on the ASX, with exploration assets in the Paterson Province of Western Australia. As at 30 June 2023, Newcrest held 356,114,785 shares (2022: 310,830,163) with a market value of $3 million based on the closing share price on the ASX.
The Wilki Project area surrounds Newcrest Mining’s long-running Telfer gold-copper-silver mine and comes to within 9km of Newcrest-Greatland Gold’s Havieron high-grade gold-copper development project, and also includes existing gold Mineral Resources at the Tim’s Dome and Chicken Ranch deposits as well as multiple defined greenfields exploration targets including Havieron analogue targets.
CHICKEN RANCH
The Chicken Ranch deposit is located 15km from the giant Telfer gold-copper-silver mine. It hosts mineralisation along a 3km+ strike length within four or more parallel mineralised gold trends starting from as shallow as 1m and extending down for more than 130 metres vertical metres.
Chicken Ranch hosts an Inferred Mineral Resource of 791,000 tonnes at 1.6 g/t gold for 40,300 ounces of gold. The prospect retains excellent exploration upside with multiple untested mineralised trends displaying significant strike extents, while the primary mineralisation remains untested at depth.
TIM'S DOME
Tim’s Dome South is located just 12km from the Telfer gold-copper-silver mine and is interpreted as the re-emergence of the Telfer Dome structure with the potential for high-grade Telfer reef-style mineralisation.
Gold +/- copper mineralisation starts from as shallow as 1m in a gold vein-bearing corridor of up to 200m wide over a 3.5km strike length within a broader 8km trend.
Tim’s Dome contains a resource of 1.78 million tonnes at 1.1 g/t Au for 63,200 ounces of gold.
Https://www.newcrest.com/sites/default/files/2023-09/Newcrest%20Scheme%20Booklet.pdf