Member Info for GGPThruandtru

From 8 to 12 rigs happening already.

It’s 33p based on a 50% probability weighting on 12.5moz at an average return of $696/Oz.

All this based only on current drilling results. Plenty of scope for improvement in terms of risk ratio/ozs found/gold price and also, most importantly, the fact that we are going “bulk mining” - then we’ll see the average profit per ounce increase dramatically. Hannam should hopefully give us an idea of this in their new note (whenever that will be)

T&T

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You know like in hospitals when they give the mother the wrong baby? Does that ever happen with assay results? :-)

Fantastic work TMT! Number 13 cracked me up!

Music to my ears Hydro...you're on form today! I'm sure if we asked nicely Newcrest would build us one for the 5%! Shaun Day here for this? (hand on chin emoji) :-)

Glad the broker note I posted eventually got some discussion flowing. I need to read it properly again tonight as didn’t have the time yesterday when I found it. But I did like the estimated capex for a new processing plant. I reckon the 5% market value part we will eventually sell, could cover a small processing plant for us!

As we know De Grey almost had a year to match ours and even stole some of our awards last year. Attached is a recent broker note, which I know most of you Geologists should love and there's plenty of info in there about the site, the geology, the process and the costs of future plans including transport costs and chances of other tenements having minerals too. It also talks about why and how they've come to their valuation and conclusion. It's an interesting read.

They have also started the resource at 3-4moz and they also own 100% of this. They have no Telfer near by though, but there is also mention of the plans and costing of a proposed new processing facility including output!

Would love a broker note like this from one of our guys! (maybe Hannam & Partners will oblige)

I'm sure more knowledgeable people out there can find something in this that can be related and help us over here (thumbs up emoji) Please let us know if there is :-)

https://degreymining.com.au/wp-content/uploads/2021/01/Argonaut-De-Grey.pdf

T&T

Do you reckon, instead of taking cash from Newcrest for the last 5%, we could get them to build us a small processing plant in a place of our choosing in the Paterson? Reckon they could get it built faster than whoever we sub-contract it to. Could be cheaper and beneficial for both parties. Win-win.

Maybe it could be specialized it to do certain minerals or stuff that Newcrest won't use or Telfer is unable to process?

T&T

Haha, there’s a reason we’re saying Berenberk!! It’s not an accident ;-)

Frack - spellcheck
quite funny*
Come up with*
My favourite part*

But the Berenberk notes in general were quite. You could analyse them any way you wanted to come u with different figures. My about our part is the value they put on our other tenements in the first one. I think it was either 450m or 500m - so however you think of that it’s approximately 1/3 of our mcap. 33p x 1/3 = 44p (they never included our other tenements in their second note haha ;-)

Not sure about the Newcrest thing, but the Berenberk note definitely used $1400, as I remember the sentence too where they said - “we expect the price go gold to retrace” lol

Don’t forget that for their notes Berenberk have used $1400 as the price per ounce. I think that alone makes us worth way more than their 33p ;-)

Thanks for that lead Tigg. Found some info eventually in the presentation. And thanks for all your info as usual Bamper.

"(1) The considerable increase in overall group TCC is primarily driven by the purchasing and processing of 3rd party concentrate in H1 2020, whereas no 3rd party concentrate was processed in H1 2019. 3rd party concentrate TCC is higher vs. own metal TCC because 3rd party TCC includes the purchase price of the concentrate, directly linked to the gold price.
However, 3rd party gold (TCC H1 2020: US$1,380/oz) is profitable at the average realised H1 2020 gold price of US$1,640/oz.

https://petropavlovskplc.com/wp-content/uploads/2020/10/H1-2020-Fin-Results-Presentation-FINAL.pdf

So, obviously we need a shallow ore base somewhere for tolling to come into play quickly, but it seems to work out in a very simple way between $400-600p/oz. And it seems Petropavlovsdog are happy to pay this per oz fro a profit to them of only $260p/oz.

TCC above means Total Cash Costs - I took the $1,380p/oz costs and minus their avg company TCC per ounce of around $800. Give or take a little here or there but the price per ounce for the ore supplier seems pretty reasonable considering it probably goes up with the price of gold as stated above. Much better than gold in the ground prices. This is all based on no info about the actual deal itself though. Tried going through the RNS's but had no luck. Could be countless factors that I don't know about that dictate the price paid to the supplier - ore type, mineral type, distance, shipping etc...

This all might be irrelevant to us anyway, but good to know i thought. (Thumbs up emoji)