The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Freddy, NCM have many JVs not just GGP and many are large ones like RedChris so its not going to happen. GGP best position is to stay quiet, listen and learn. If Newmont want to buy GGP then the same deal made to NCM plus 60% on SP and 1.1 usd special Divi per share, think that would be acceptable to most shareholders at the moment. Anything less is not acceptable as far as i am concerned. DM
PK i watched it and found it most interesting as more information was discussed about the other projects which i think is unknown to most people on LSE. Bamps and Bottle spend a large amount of time on their projects to keep less informed people like me up to speed on what's going on and giving a different point of view to what is known. Thanks Bamps and bottle. DM
So Whyloo paid 600 million dollars for something in the ground and will take years to start production for 11 years not a tier 1 mine, so where are we as GGP oh yes 1 year from production, tier 1 mine good for at least 30 years to fifty odd years if more than the 20 million oz which has been mentioned by none other than our CEO. so i think our bit is X ten the 600 million paid for Eagles nest possible hole in the ground, DM
Hi Tom, read my missive from last week, will take 3 to 4 years from conception to commissioning the plant, that includes planning, engineering, construction and commissioning. Cost including pipelines you are looking at least 500 million maybe more if including recovering other metals like nickel, silver, moly and more. Best is to use Telfer at cost plus 10% until we have the money to build the new plant, that is owning 100% of Havieron. Not worth the effort unless we find something big on Skallywag. DM
We need Telfer in the short to medium term just for Havieron let alone Skallywag. It will take 3 to 4 years to build a new plant from conception to production. One year to get planning permission, 18 months design and procurement and at least 18 months construction, commissioning and start-up.
Telfer stand alone value is one USD due to decommissioning and put back to nature cost, i have worked in many refineries where the major sold to smaller companies for dollar due to put back to nature cost as they don't know what they will find when digging out the old foundations ETC. The only good thing about decommissioning Telfer is that the utility lines can be extended to Havieron instead of building new ones from the coast. DM
Well said Culpepper only difference is our BOD is as good as NCM and NMM and IMO we are in a better position as i think both parties will be talking with GGP and we have everything to gain and nothing to lose while either NCM or NMM will lose out one way or another. One way to stop a TO is poison pills and that is to buy another company so making it more expensive or sell a jewel from the crown like Havieron and Telfer to somebody else and i wonder who that can be mmmm yes GGP. DM
Telfer was dead and burred before Havieron came along, It was loss making and little life left in the mine so worth 1 usd in TO or millions to decommission. Havieron was a blessing for NCM and forced them to make a decision which in my opinion was correct for them and for GGP in the long run. Where do you think we would be if they had shutdown Telfer and not JV with GGP, we would have been like SOLG going nowhere and spending money to little effect and then taken over for a pittance. Roll with the dice and let the big boys settle it out. DM
Dilution is not an option to buy Telfer and Havieron as it will also include Juri JV unless our SV is above 50p. We can only borrow the money from banks and they knowing what the future production will be for the length of the loan. For me is for NCM to hand over all Paterson projects including Havieren and Telfer for a % net smelter think 5% should do it if they complete Telfer cut back or 1.5 % if the dont. NCM get an income stream for 40 years plus and GGP get no initial debt to buy everything. DM
Why is SD visiting London again seeing that the MRE2 and DTM has been delayed to August 2023.
1 > Looking for additional monies from banks.
2 > To buy back Havieron JV
3 > Been offered to take back Juri JV like Antipa?
4 > Been offered Telfer Mine.
5 > Found a mining company to buy.
6 > Been offered a JV on one of our other projects like Ernist Giles?
7 > Had a fantastic drilling result from Scallywag?
8 > Likes the grub in Cheshire Cheese pub and a few tinnies or real Yorkshire ale with frothy top
> Any other thoughts guys. DM
Hi MM, miners do very well after the sell off of gold just as they did during the 1930s after the crash. Gold bullion does well again after the sell off to cover for loss of value due to inflation and after stagflation, stagflation being worse for normal assets as the value keeps reducing as what happened after 1937 to 1840 start of the war. Silver follows and then spikes, buy gold on the silver spike as good value. History shows exactly what happens and the sequence, best check it out. DM
Not sure Iran will go into brics as they are on the way out, boss man just sent 4 billion dollars to his account in Venezuela where they will go when they get kicked out. Guy running the demonstrations stated that all countries to keep out of Iran politics. DM
Rick Rule stated that there are 2500 pm mining companies out there, of those maybe 200 are any good, of those 200 companies only about 10 will go into full production in time. I think of those 10 companies we are number one and close to production. SD intimated there are 20 million oz in Havieron, personally i think more like 50 million but thats my take. 30% of 20 million oz which is our take is alone a tier 1 company with much more to come and only a top team can prove up out position and thats what we have as Rick Rule states the management team is what dictates his investment in a mine not how much is underground. A bad team will not extract 1 oz from 20 million oz deposit. DM
Hi Dip, NCM has only 3 options, one is to try and remain independent as is and hope NMM give up, the 2nd is to increase the value of the company by buying other companies or merging with said so NCM comes too expensive especially if borrowed the monies to buy other companies, the other way is to sell off divisions of the company and give the loot to the SH making the company less attractive to buy. I like the 2nd option and buy out Havieren for 3 billion usd, think SD would go for that value then he can drill the hell out of Ernest Giles and other tenements leaving 1.5 to 2 billion as special Divi, Dream on. DM
Agree SG, i wonder what SD real calculation for Havieron was at that time and now the present value. Telfer has no value as it stands as it only has ore for another 2 years with doing the cut back to the open pit and that cost over 140 million usd. The crux is getting the SP up to normal values ASAP which should be between 18p and 25p at this time then all options are on the table going forward. DM