Prim20 Apr 2020 09:24
Having reviewed in some detail many sources of publicly available data it is clear the drilling footprint has expanded dramatically in the WSW and SW, SE and N of the existing Havieron drilling grid. Why that should be we can only speculate, however there is the possible conclusion that Newcrest have discovered significantly more mineralisation outside the previously defined limits. This could have a huge impact for the valuation of Greatland.
Our view on the end-game (exit) for our investment in Greatland is very simple. In our opinion Newcrest Mining will seek to acquire the entire share capital in Greatland in the near future, possibly just post a maiden resource estimate for a small part of the overall mineralised system. We expect this maiden resource in late Q2 to early Q3 of this year.
The reasons for these convictions are again simple. Telfer is 100% owned by Newcrest, as are all their Australian operations. We can't see any reason for Newcrest to maintain a minority partner at production level and the market capitalisation of Newcrest at some circa A$24 billion and with billions in cash and at call liquidity, it is easily capable of swallowing Greatland. The only question left in our mind is what price will they pay?
Therefore, we will continue to hold our shares for that possibility and believe the best share price appreciation for our investment is still in front of us. Perhaps large UK institutions will take notifiable interests in Greatland soon, but they have been conspicuously and inexplicably absent to date. In our opinion Havieron is shaping up as a once in a generation discovery in a gold bull market. What is not to like?
What is mot to like about that!?
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