Member Info for lebugue-addick

9th March UK, 10th March Aus

From RIO board today following results and podcast: "What's really encouraging from the podcast is the confirmation that they're not going to get into M&A "at the top of the cycle".

Laserbrain. Look at 12 March 2019 RNS. It goes back to GH era nothing to do with SD. He is saddled with the previous agreement though he said if he was negotiating now he wouldn't have put in a clause about the 5%.

If the parties can't agree by the revised date on the 5% then it goes to arbitration. GGP cannot refuse to honour the 5% though NCM can decide not to exercise their option.

As the mid February deadline has already passed we can assume the parties were not in agreement and hence the deadline was extended as per last week's RNS.

Why not just let GGP and NCM sort it out?

Dotting i's and crossing t's maybe but did anyone else find it a bit strange that Newcrest didn't put out their own RNS (or ANN on ASX to get the terminology right) on 21 December informing shareholders that they were in discussions with GGP re: the 5% Fair Market Value.

GGP reported the Newcrest notification as follows: " Newcrest has issued a notice to Greatland informing it that Newcrest would like to begin the process under the joint venture agreement to seek to agree the option exercise price in the period to mid-February 2022".

I would have thought a commitment of say £100-150 million for the 5% (or whatever value you want to put on it) would have been material to Newcrest shareholders. Can anyone recall what was said on Newcrest's hotcopper pages around this time?

I've trawled back from NCM's ANNs and not found any release so don't think I have missed it.

15.56 Dip666 - GGP own the Hav licence so why not give it a go unless the formal JV contract precludes it. It must be fairly clear to the 5 members of the JV Committee (3 NCM, 2 GGP) what GGP's position is re: the MRE and the 5% anyway.

It all suggests they are worlds apart on valuation atm as the mid February deadline came and went:

RNS 21 December: "Under the joint venture agreement, if the option exercise price cannot be agreed by this date, each party is thereafter required to notify the other of its assessment of fair market value. If both parties' assessments are within 10% of each other, the option exercise price will be the average of those assessments. If both parties' assessments are not within 10% of each other, the parties will proceed to independent expert determination, with the expert being required to determine which of the values nominated by the parties is to be the fair market value".

Sure we had an update RNS last week but it wasn't couched in the same formal language at all. Merely said discussions are continuing. So we can assume the mid Feb deadline was extended mutually.

It would also be interesting to hear how far NCM had got with the MRE before the RNS dropped the other day. Then later we get to hear from SD: "5% FMV not finalised cos the resource is too big and Newcrest can't afford it until later in the year!" Now that would be funny.

Took a tiny few today. Sssshh don't tell GGP mickey!

boarder restrictions eh?

Nice one Bamps. In terms of cost and delay SD was reasonably positive that, although there may be a 6 month delay according to Sandeep based on current rate of progress, some time can be saved by modifying plans now. I would love to see the JV Committee meeting minutes but I know that will never happen which is a shame.

SD comments as per Dip666 notes: "Right now we think it’s within budget both in cost and time, what NCM did prudently is flag that the ground conditions are a little bit softer than we’d like so that has slowed it down a little bit but right now there’s a range of things you can do to accelerate that and catch up and indeed against the timeframes originally set
- One of the things we’re doing and progressing with is a change to the route of the decline, still ultimately the same passage but spiralling down a little bit earlier rather than running across more laterally at these higher depths
- So, that’s positive, as with depth the ground conditions will get more and more positive."

Taverham - Newcrest are asset rich and cash rich according to their half year results release on Thursday:

o" Strong balance sheet well within financial policy targets, with net debt of $469 million, leverage ratio of 0.2 times and a gearing ratio of 4.5% at 31 December 2021
o Significant liquidity at 31 December 2021 with $3.2 billion in cash and committed undrawn bank facilities
o Sale of royalty asset portfolio generated $37.5 million
o Total dividends paid in the current period of US 40 cents per share
o Fully franked interim dividend of US 7.5 cents per share

Z - I realise your final sentence was very tongue in cheek. But just for clarity the work needed for MRE2 is onerous as I think by now everyone understands. It's not a 2 minute fag packet job and as such I will be surprised if we get it before mid March at the earliest if work hasn't started already.

Dillon - did you not list to the SD Proactive presentation. SD said himself that he expected the MRE2 and only got told by Newcrest very shortly before the half year figures release by NCM that it would not be included. Relationships/comms issue at the very least. Not a way to do business.

In an ideal world GGP should be pushing for an MRE2 before they can agree the 5%. SD cannot negotiate effectively with one arm tied behind his back and needs to negotiate from a position equal to NCM.

Greatland were expecting a fresh MRE to be released and got little or no notice that would not be the case. Sure you can argue better communications between the two would have revealed this was not going to happen but SD looked uncomfortable answering questions last night (yes I know it was 2am in Perth) and has clearly been blindsided by Newcrest.

Although SD might have a very good idea of the size of the next MRE from his perspective that is not to say SB will agree. After last night's presentation it looks to me this will have to go to arbitration.

I have sent an email to GGP asking them to push for a new MRE.

5x5 - it may seem that long ago but actually here is the RNS extract you are looking for:

"The Inferred Mineral Resource is based on a total of 125 drillholes for a total of 126,643m of drilling as at 26 October 2020".

We all need to bombard GGP with emails demanding that Greatland contact NCM urgently to put forward investors views that the MRE2 needs to be concluded asap. It's been well over a year with fantastic updates every 6/7 weeks. If this were Red Chris we would be on to MRE4 by now. No ifs, no buts. Newcrest are taking us for a ride. Fuming tonight, sorry!

Firstmodern - these are the declines reported in RNS:

RNS 21/7/21.....69m advance
RNS 9/9/21......120m
RNS 28/10/21..211m
RNS 9/12/21....245m
RNS 28/1/22....277m

Last night's report by Sandeep was aimed at calming the market after a disappointing half year and predicting a better 2nd half now that capex has been invested on their assets in H1.

It was not aimed at Greatland investors in that sense. People are reading far too much into the lack of update on Havieron. The asset and potential remains massive.

Summit - it was a half year report end of. It was not in that context "designed" to do anything of the kind you describe. You are reading far too much into last night's report.