RE: GGP - Valuation12 Jun 2025 12:59
Aquarius, stick to trading your desk and getting out of the hole you put yourself in !
Clearly you have a bit of confusion here about Newmont’s role and Greatland’s funding:
Newmont sold, not retained, its 70% Havieron interest
– Back in Q4 2024 Newmont agreed to divest its 70% stake in Havieron (and the Telfer mine) to Greatland for US$475 m
– As part of that deal, Newmont received US$207.5 m cash + US$167.5 m in Greatland shares (and up to US$100 m contingent later)
Greatland now owns 100% of Havieron & Telfer, Post-deal, it’s Greatland (not Newmont) carrying all capex and development risk for Havieron and Telfer
Newmont’s “20.4% stake” is simply share equity in Greatland - Newmont’s equity was US$167.5 m of stock, which today equals about a 20.4% shareholding in Greatland
– That means Newmont is a passive investor in Greatland plc, not a JV partner in the mine itself.
Greatland is well-capitalized to develop Havieron
– At end-March 2025 Greatland reported A$398 m cash on its balance sheet and strong free cash flow from Telfer
– It also has the upcoming ASX listing and Wyloo/Andrew Forrest backing to shore up funding.
Bottom line:
– All development costs for Havieron fall to Greatland—not Newmont.
– Newmont’s 20.4% is a normal shareholding—they can’t “bargain-hunt” for the mine itself without making an all-share takeover offer to all Greatland shareholders.
– Greatland has both the cash and strategic backing to press on with Havieron on its own.
Hope that clears it up so you can get back to figuring out how you f**ked up your short position !