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I know very little about mining except what I have learned on here-Currently Telfer needs Havieron gold to keep it functioning and so to a degree this is why Newcrest are drilling at a rapid pace .Once Havieron ore is being fed to Telfer ,presumably there is a limit to the ore that the processing plant at Telfer can manage -could Havieron alone fill that maximum capacity If it can then does this mean that a new processing plant and support network for any other would need to be built for any new find which GGP would have to fully fund if the find was 100% owned unless a JV is arranged and would that slow the development of any new find .ATB Jonno
I am no expert , but from the psychological point of view the current situation however arrived at is interesting- There will be those who sold as the share price continued to fall -reasons will be varied but include -I am slowly losing money, I only invested short term for a quick return, I need money now etc -I suspect then when this happens there will be those who see this as an opportunity at some stage whether they be Pi's or Institutions to buy,.On the way back up ,when the share price rises as I believe it will,there will be those who sell at a loss -thinking I got out of this share with not much of a loss and cant risk it falling again.Those who want to buy will have 2 opportunities to buy at a lower price (they succeed if they keep the price falling long enough) ,frompeople baling out as the price falls and from those who are grateful for making less of a loss than they might have done ,.Just musing on a Thursday evening ATB Jonno
Floater well said
I don’t post much as I have little to contribute.For me ,It is very simple
Newcrest are drilling at an incredible rate.,and have been for a long time.They are a highly rated gold miner working in their own back yard.The ore body is massive and growing all the timeThis has always been a slow burn in terms of realising value..Nobody knows the future but for me the long term prospects are very good ATB Jonno
Is it possible that the money raised not only will be used at Havieron and other targets ,but is also a way of getting a better valuation of the 5% that will be on offer to Newcrest shortly? .I accept that there may be a clause in the contract that will reward GGP after the 5% sale if the value of the 5% was subsequently found to be greater than initially agreed,but if the initial valuation is higher because of the new drilling that is to be funded then the cash flow is much better >
Speedy/Monty
I find the current situation re QE/Inflation/supply and demand /employment very difficult to read in terms of where we are heading .Years ago-(approx 50yrs ago) one half of a couple could go to work and 3x their salary could be borrowed for a mortgage which was enough to buy a place to live .interest rates varied but were never this low .Over the years it has got tougher .Both halves of a relationship have to work,mortgages could be extended to 40yrs, interest rates went lower and lower ,bank of mum and dad became recommended and bank of grandparents as well,-indeed anything to enable the price of houses to rise -(to keep the bubble going )-and certainly in my early years credit was a "dirty word " if you didnt have the cash you didnt have it -apart from the mortgage and may be hp for a car .If business's borrowed it was to make a product ,sell it and with the profits pay off the loan.Tragically now, much more credit is being used for basics -rent/food/clothes and cant be paid back ,I have patients who this winter will be making choices about whether to eat or heat each day -I know there has been a lot of QE but has it actually gone into the economy and created liquidity -Im not sure how much has ,and even if it has I know a lot of people who are frightened to spend more than they have to and if they could have afforded luxuries, are not now -and I dont mean luxuries as well off people understand them to be .A lot of countries have a vast number of job vacancies they cant fill -whether it be for butchers/fruit and veg pickers/hgv drivers etc and I am really not sure that the supply and demand issues are going to be resolved as quickly as some think .Inflation is running at 4% officially ,I suspect in reality it is much higher -We have seen more recently the chinese property giants creaking under the strain and if they implode the effect will be felt around the world .The effects of climate change will continue to affect the world -floods/bush fires etc-and create black swan events .If interest rates do rise and with inflation where it is ,logic dictates that they should I,m not sure whether the above will lead to recession or stagflation -I havent yet mentioned covid /flu and the horrendous waiting lists in the nhs for physical and mental health problems-
Having said all that I think whatever happens gold will do well over the next few years for those that can afford to worry about it ATB Jonno
Monty McGree
Are we not heading towards Stagflation - especially if Taxes rise directly to pay for QE and costs rise in subtle ways -eg 60-66 yr olds now having to pay for prescriptions -supply is a big problem whether for heating/energy generally, so are we going to see companies either going bust or laying people off,reduced working hours because they cant afford production costs ,or get /afford the raw materials If eating out is going to cost an extra 15% - people wont eat out ,with the implications for the relevant industries. If interest rates have to go up to reduce inflation -there are going to be even more people in financial difficulty .I havent even mentioned the NHS waiting lists and covid/flu ATB Jonno
I am no expert on mining - but 1) this is going to be a mine 2) what was going to go into this PFS wasnt decided yesterday 3) and Newcrest are still drilling flat out- this is going to be a very special mine with no sign of drilling easing -it will take time to know exactly what we have and just as importantly why -the latter to enable the company to grow
I was chatting to my son in Perth yesterday.Australia is struggling wit the drop in iron ore prices as a result mainly of China's cut back in demand .How this impacts,if at all ,on gold miners I'm not sure .There are people are this board who have far more insight into this than I do and it would be interesting to have their views
I would have thought any news ,that is more up to date ,would be a good thing.We would all like good news all the time but alas life isnt like that .The fundamentals I am sure wont change and indeed I expect will get better .If some drilling results arent as good as we all hope, then it gives the individual more upto date knowledge on which to base their investment decisions