The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
We now know NEM are in Phase 1 of the sales processes and 3 teams set up for different geo's inc. Oz, also that they have activated a 'price discovery' phase and certainly they have at least one bidder for Hav/Telfer you'd presume with GGP. If akin to Aykem where opening bids are due by end of April, hopefully this means negotiations can commence in May for GGP too.
You'd think that GGP has worked at getting close to a funding framework for what all involved deem a fair value range agreed in principle to assist talks with existing and perhaps new members of current syndicate , alongside having performed as much Due Diligence as possible at this stage for all parties around their own perspectives and needs - GGP's aided by current involvement in Havieron as part owners with planned processing at Telfer.
So fingers crossed we could just be a few months away from a resolution, not saying it couldn't take far longer if perhaps some complications arose or there are other bidders where allowance has to be made for all parties to offer, so LROR can be actioned by GGP of course.
No one knows exactly what is going on but NEM have said they're looking to execute or decide all divestments by Q1 2025, and enough reasons to hope that GGP's negotiations move quickly. In terms of sequencing, both the CEO and their investor relations have articulated that they'd expect Oz assets and Aykem to probably be divested before the N.American assets to date.
Daniel Major
The second one, you've talked detailed a lot of the progress you've made since the integration in Newcrest. In these kinds of deals, I guess there's always positives and negatives. What's the toughest part? What's been the most challenging or almost difficult part of the integration so far?
Thomas Palmer
I picked that one up. The thing by far away, Daniel, is that the tragic loss of Adam Kennedy's life at Brucejack on the 20 of December last year. And as you reflect upon the integration, you reflect upon what things could we have done differently, what decisions could we have made differently that wouldn't have led to Adam being killed that day at Brucejack.
I think, as you've said in some of our remarks as well, I think stepping back from the loss of Adam and safety, I think the two areas that we are working through diligently tailing facilities, and we've talked about Telfer and we've talked about our Cadia and little bit around Red Chris. So just bringing those tailing facilities into the Newmont standard and ensuring that we have the appropriate rigor and discipline around those in managing them here and now, and ensuring those we shepherd those going forward that they have the appropriate standard.
And then the third one would be bringing the ore body knowledge levels up to a Newmont’s standard so that we've got really robust all body knowledge underpinning our mine plans. So that will be the three areas where there's been, I guess the hard work. I think if I step back from that with the perspective of having lived through a similar integration and transaction five years ago, I think, when I stepped back from those three areas, I think the integration has gone very well and I think we had the benefit of being able to apply the lessons we learned from integrating the five Goldcorp assets back in 2019 to this exercise. And that's put us in good stead.
_____
End
Jackie Przybylowski
And maybe if I can ask as a second question, just going back to your divestment strategy, I know you have a number of assets that you're looking to sell in Canada specifically but also, I guess globally as well. Can you comment at all, like, is do you have a preference of selling that's in sort of groups or bundles? Or are they all expected to be sold individually to different buyers? I mean, I don't know if you can make any comments on how you're thinking about that?
Thomas Palmer
As I mentioned, in the -- asked earlier question, the process has started on all six assets. We have engaged banks and have started a process on all six assets, and we're in the process of price discovery through a Phase 1, and active interest. So we are getting a good feel for the level of interest in these assets and the competitive environment that we're hoping to enjoy. And we're running three separate processes in terms of, because they're in different locations.
There's a set a process for Telfer in the Australian context with a dedicated team looking after that. There's a process for Akyem in the African or Ghanaian context with a separate team looking after that. And there's a process for our North American assets, the four operations plus the coffee project, and a team getting after that for being led by Peter Toth that's Scott Langley. But up and running and very active, as I say, we're in Phase 1, and quite excited about the level of interest and the competitive environment, which we are presenting these assets to prospective buyers.
____
cont...
Highlights from Q&A:
Operator
Our next question comes from Josh Wolfson of RBC Capital Markets.
Joshua Wolfson
The team has painted a fairly rosy picture here on what the prospects are for asset dispositions, and then also what the free cash flow outlook would look like absent some of these working capital headwinds. In that context, I'm wondering how flexible is the company's buyback policy? And I'm noticing the stock being a lot higher today than it was when the plans were announced for this at the fourth quarter results.
Karyn Ovelmen
As we go through the divestitures and as I've indicated as our free cash flow picks up in the second half of the year. First priority is to ensure that we've got that our cash replenished on our balance sheet. And then there will be flexibility in terms of as long as we have line of sight in terms of that debt reduction over the next 24 months, we would -- at that point in time, if we were in a position start to think about executing on share buybacks.
Thomas Palmer
And a reminder, Josh, we've got an approved $1 billion buyback program ready to go if or when that scenario, Karyn Ovelmen said out takes place.
______
Joshua Wolfson
And then just sort of to clarify, when I look at even what a flat quarter would look like at much higher gold prices today, and again without this, some of the larger working capital challenges, even maybe one or two of these asset dispositions would put you in line of sight of that. Is it fair to say that the prospects for the buyback could happen sooner than maybe what the initial criteria were outlined for the balance sheet requirements?
Karyn Ovelmen
Expectations for the divestitures is that those will be executed within the next 12 months. Hence, the classification on the balance sheet is assets held for sale. So expectation is through first quarter of 2025 that we will have executed or made decisions around the divestitures. And so the timing is contingent upon that.
Joshua Wolfson
And then, sorry, just one question if I can sneak in. I noticed the book value for the assets that are held for sale is $5.7 billion, which is quite a large number as compared to the $2 billion targeted. Any sort of comments there on how we should think about pricing or what the targets are effectively?
Karyn Ovelmen
No, not necessarily. I think from an accounting convention perspective and how they're reported from a GAAP perspective will be obviously considered, I would assume by potential buyers. But in essence, the process of going through the commercial view of the assets and the value to the potential buyers that will produce something most likely different whether it's up or down inefficient versus what is recorded on our book from a GAAP perspective.
_____
cont...
Newmont Q1 2024 Earnings Call Transcript
https://www.ggpchat.co.uk/viewtopic.php?t=914
Note: unfortunately some missing segments in transcript
Also as JC on TG pointed out the press has reported opening bids for Aykem expected by end of April so perhaps that is the end of price discovery phase for all 3 geo's?
A loose assumption of course, Tom P stated high interest in all assets so I don't expect they'll need to extend Phase 1 for any of the 3 geo's - and we know of at least one interested party for Oz assets I guess....
Sry, should have read more as in flexible as in separating payments into two tranches albeit well within desier timelines to meet targeted divestments etc.
listening in to call and typing posts while i was catching up on work after morning off :-)
- Currently in Phase 1 being Price Discovery Phase i.e ascertain interest for assets to set price/negotiating range and they have had great interest, cash is a preference
- Separate and dedicated teams for each 3 geo’s inc. Oz assets
- They plan to divest or decide by calendar year Q1 2025
We don't know when Phase 1 ends but as they've had good interest for the assets you'd think they won't need to extend it, especially for Oz assets with GGP sat there willing to negotiate once a valuation range is set.
Cash is a preference but as can be seen with Lundin deal, they seem open-minded.
In previous comms from NEM CEO and correspondence with Investor relations the sequencing suggested is completion of Hav/Telfer and Aykem before N.American assets.
GGP should IMO have a draft framework financing pretty solidly drawn up with Wyloo, Banks and other parties within their idea of FMV for the assets to ensure negotiations can be efficient including hopefully plenty of Due Diligence that is achievable at this stage being conducted too, helped by the fact that Havieron and Telfer are already part of the plan for JV in place.
So fingers crossed Telfer/Hav will be completed earlier within the timeframe set for divestments planned by Newmont for CY Q1 2025.
Replay:
https://events.q4inc.com/attendee/908608833
@Blantyreboy - was just posting something about this in relation to someone raising something in TG and I think Wyloo will come into the mix with more of a JV approach if GGP's MCap makes it difficult.
I submitted a question in one of LSE's Webinars prior to a TH about a 'Plan B' and he said perhaps Wyloo could buy Telfer themselves and assist them with Hav purchase, so I think they will find a way if Wyloo is amenable to something like that.
Here's a screenshot:
https://ibb.co/tLrTdTL
https://emits.dmp.wa.gov.au/emits/enquiry/home2.xhtml
Also 5x5 - I'm in both the general and smaller UFO TG group where you need to prove your holding.
I'd never be a part of any co-ordinated buying / selling and report anyone attempting any such cr@p, same goes for being part of an admin in the GGP group - I'd have no issue in reporting fellow admins if i thought anything going on. The smaller verified group set up by Upside2020 is for a more research focused approach without the usual histrionics of these kind of groups.
I'm sure it goes on though with cabals of traders around stocks popular with retail and they then ramp/deramp using different id's vs there being paid posters as such by big firms, they have easier ways to manipulate stocks within the rules such as shorting for instance...
Key stats for the PPSS:
https://www.ggpchat.co.uk/viewtopic.php?p=4786#p4786
Newmont First Quarter 2024 Earnings Conference Call link:
https://www.newmont.com/investors/news-release/news-details/2024/Newmont-Announces-First-Quarter-2024-Earnings-Conference-Call/default.aspx
Rome Resources Provides Update on Proposed Acquisition of Rome by Pathfinder Minerals Plc and Board Change:
https://money.tmx.com/en/quote/RMR/news/6802298810385507
Vancouver, British Columbia--(Newsfile Corp. - April 11, 2024) - Rome Resources Ltd. (TSXV: RMR) (FSE: 33R) ("Rome" or the "Company") announces that, further to the Company's news release of November 29, 2023 in which it announced entering into a non-binding heads of terms providing for the potential acquisition of the issued and outstanding securities of Rome by Pathfinder Minerals Plc ("Pathfinder"), a UK company quoted on AIM, which would constitute a reverse takeover of Rome by Pathfinder under the AIM Rules for Companies and a reorganization under Part 8 of Policy 5.3 of the TSX Venture Exchange (the "Proposed Acquisition"), due diligence by both Rome and Pathfinder and their respective advisors with respect to the Proposed Acquisition is ongoing, and Rome is pleased with the progress made to date.
Rome also announces that Mr David Jenkins has resigned as a director of the Company, for personal reasons. The Board thanks Mr Jenkins for his contributions during the period he served as a director.
As shared by Liam on TG, link to download below:
https://geodocs.dmirs.wa.gov.au/Web/documentlist/9/EARS_regi_id/121684
@CP - guessing is speculating is investing... It makes sense to wait for an ASX listing now - we'd need a waiver of the 20 cents threshold or consolidation at this SP level - make it part of the funding process if deemed appropriate once things play out and hopefully then benefit, and a DFS wouldn't hurt as you say in providing some fuel for a positive catalyst when listing.