Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
It’ll all be aired during discussions, with the possibility of side deals and assurances to secure mutual advantages, on the state of play as it exists now.
I continue to think Newmont will prefer cash on the nail, to satisfy promulgated promises to their own shareholders.
It would, I think, be a difficult balancing act to mine Telfer at a profit, without further capex, and dependent upon the price at which Ggp may be required to hedge it’s gold output from the mines, and in accordance with any lender requirement.
The JV, what we know of it, refers to intention to process at Telfer, and intention to negotiate tolling fees. As I see it, Ggp’s main priority must be to secure ongoing access at least to the facilities. I think that remains pretty much a certainty in the end. Without it, there will be no near-term benefit from Havieron for anybody at all.
Just considering the basics of Ggp continuing with its original solid plan as with Newcrest, is all, with which people were generally content before Newmont turned up.
‘ This water management has indicated potential for greater volumes of water to be managed at surface than originally modelled’
In the absence of anything else, it seems to me that is where the challenge is currently perceived to be.
I think it’s quite simple. Punters agree with this board there’s a very real possibility of a fundraise coming, potentially in excess of the Ggp market cap, or more.
Whether they will be proved right or wrong to fear for the value of their shares pending FCF and accretion is another matter.
It’s a cautious view, awaiting clarification.
Aquifer apart, I think this older RNS pretty much summarises where they’re at, with ASX for opportunity and so on.
https://www.londonstockexchange.com/news-article/GGP/corporate-update/16123792
On funding, they have the general standby debt facility to add to the banks’ Havieron facility (subject to FS criteria )
“In September 2023, Greatland entered into a A$50 million (approx. £26 million) unsecured standby debt facility with cornerstone shareholder Wyloo Consolidated Investments Pty Ltd (Wyloo), providing additional flexibility for Greatland's funding requirements through 2024. Wyloo currently holds approximately 8.5% of Greatland shares.”
They will undoubtedly have looked ahead to balance the books, dependent upon whatever way the Newmont divestiture goes.
I think Newmont are more likely to be looking for cash inflows if they can, to keep their promises to their own shareholders.
Reading the official releases, I don’t think the ASX is ‘on ice’ or delayed as such. It’s waiting for the ‘appropriate time’. With its further source of capital pools, you may consider an ‘appropriate time’ may be approaching, subject to any change that may be required to satisfy listing criteria.
Separately, and previously.
Consensus from 2 of the Canadian Metals and Mining analysts is that Amaroq Minerals is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of CA$24m in 2025.
“Process plant engineering was 77% complete at the end of Q4 2023 based on the updated project scopeConstruction”
“…This work lays the foundation for safe and efficient trial mining to commence at the end of Q1 2024 or early Q2 2024.”
“The Company expects to mine first gold in 2024 and plans to provide a progress update with timings for guidance for the project at an investor event in June 2024. First production guidance for 2025 will be provided towards the end of 2024.”
And they topped up funding post year end by £44m in February to accelerate the process.