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Dip, I thought Shaun had said that any ASX listing would come after any deal, not before. Too problematic to do it to fund any deal, as NM will want certainty not something subject to any fund raising. Hopefully UK instos can take up any equity and leave plenty of pent up Aus demand for a compliance listing should it be desired.
Drover, I think there are many many options as to how this might go. The one I like atm is NM taking a stake in GGP as (part) payment for the assets. Then if the price is deemed low at least NM can share in the future upside, including the gold price.
For NM its quite neat. Zero management time, but exposure to something that could be significant.
Of course it doesnt solve their $2b problem!
Bamps, the Telfer aisc will fall due to mine optimisation and reduction in costs. I dont know whether it will fall to 1500, but it will definitely fall. There is a lot of fat at Telfer.
ChartaRex, it was also discussing Hav production using Au equiv, so not using the Cu as a credit to the mining cost. Hence a much higher aisc number and a much higher production number. It got a bit confusing I am afraid.
MH01, with Degrey not producing I wouldn’t have thought that we would be compared to them. More like the Aussie mid tiers like Evolution and NS on p/e basis, though p/es will probably rise considerably if gold rerates and money flows into the sector.
IF we were to get these assets I see a far greater sp potential than you are implying but still many bridges to cross….
Ok good. Just checking!! 😉😁
Aisc without the benefit of any copper will be a lot nearer 1500 imo.
MH01, I don’t think you can use the copper as a credit to reduce the aisc AND use the copper to convert into gold ounces. It’s one or the other, not both.
MH01, be careful that you arent including the copper to get the AISC down and then using the same copper on your production profile. Its one or the other, not both.
MH01, it’s possible that the aisc for Telfer could be $1500, and I think Havieron could be much much closer to $500.
The maths of both are undeniable, unless one thinks gold is about to collapse. In which case, you shouldn’t be here.
Imo, Newmont will not be interested in Solgold, despite the attractiveness of the copper. NM are not really developers, but more miners of developed projects. They also seem to be focusing on US, Canada and Australia. Plus they appear to have a desire to improve their balance sheet with asset sales, not purchases.
Barrick have a much greater desire for investments in third world countries. So maybe.
Does Gina really want to make a huge pivot to Ecuador?
For me it’s the Chinese, and everyone else’s involvement will merely (hopefully) get the price higher.
I added a lot last week as r/r seems pretty interesting now.
Intrigued to know if LB has examples of 'non dilutive funding'.
Drover, I would argue that a royalty deal could be dilutive as you are selling the future income stream. Just depends on the price. However given the buyers of royalties want to see an exceptional return, the chances are that it would be dilutive.
As some have said there are many ways in which to finance any deal. Initially it might depend on the price and the size of the assets, but I suspect I could think of more than half a dozen different methods. Given Shaun is an ex CFO, I would think he is all over these options, and I hope he chooses the one that is the most accretive.
MM, you should listen to how much Shaun praises NM and their management and what Shaun says positively about NC nowadays. The former a lot, and the latter absolutely zilch. The NC relationship was very strained not helped by Sandeeps attack dog running the BD unit at NC. Fortunately besides being a difficult person to deal with he was also a bit thick and very arrogant (which isnt a great combination), so massively screwed up the 5% negotiation. I understand that he is now at Hyperion with Sandeep, presumably making a mess of all their attempts at investments.
No one should miss NC, they were not good partners. IMO.
Of course it might be one of the institutions that Shaun has met over the past two days.
Chisler, I think it would be better to say that Telfer has liabilities, than it is a liability. 250,000 ozs a year at an aisc of say 1500, sounds like a cash cow to me.
Why didn’t he just answer the last question by saying ‘yes’?
Aqua, it a shame that after 1280 posts you still don’t understand the difference between dilution and accretion. Please look it up.
Avocet, I am quite a large buyer at zero. How much would you like to sell me at zero?
Email. Absolute rubbish. It’s clearly a tag on to the BMO conference and the usual round of investor meetings. You have a fertile imagination and that’s about all.
I think you will be fine Midas, but I am more certain that you will be disappointed tomorrow morning.