The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Joe - that sounds like nonsense to me - and if it's true then I think it's rather worrying anything is being spent on external advisers to look for investment opportunities. There are plenty of ways to source opportunities (including agreeing to take the meetings continually offered by the bank's who are always looking to introduce and get in on a deal). My gut feel is that something lost in translation between your trader contact and his/her friend.
I think so - obviously not at the expense of the core operational business - but I think it would be a quick win for the company which clearly has some great finance and exploration/mining folk, but needs to manage the commercial/market relationships as it continues to grow.
Jiffy - I think it's great he's doing this. I just think we need to understand we are beyond the atypical 20-50mm mcap aim explorer who can get by on RNS's and adhoc interviews, and we can now do some great marketing/pr etc., great executive incentive packages etc., As well as the core exploration and development work.
Just looked as news section on website...latest news that came up... October 2021...
Dillon - I'm not saying put out comms for that sake of it - I'm saying that there are lots of investors out there who don't know the story - it's such a great one to tell we should be doing it better, and elements aren't reported as well as they might be - just look at the reactions here to news, there's too much ambiguity in company statements I feel. Those who read this BB might say it's all obvious - but don't we all love it when we hear the good news played back again in a report - supplemented by the next set of good news... building the story of the business.
I am hugely optimistic about prospects for GGP and share price.
I am though continually surprised and disappointed by the level of professionalism around communications and PR. Yes - the focus should be on the drill bit and deal making - but they must do better on positioning the business.
I think between the comms around last year's placement, the timing of this new performance scheme and selective explanation of it, communication via web interviews without updating corporate website with relevant new information etc. is below the level expected of a £500+ (soon to be £1bn+ we hope) company.
Some my not agree with/appreciate my pov but for a limited amount of effort I think GGP could massively improve in this area, without neglecting the core operational areas.
I don't see an issue with performance related incentives and making some equity available for new joiners etc. makes sense. I do think the timing is a bit tone deaf - not least as right now they should be 100% focussed on getting the 5% deal done, the MRE2, funding + putting some world class communication around all of that. Not negotiating their packages.
I'm also not sure equity related incentives are appropriate/needed for (as per SD email someone posted) "safety/substainability criteria which are an increasing focus and typically mandated by governance proxy advisors" - surely the reward for meeting mandated requirements should be covered within salary? If going beyond required standards adds value to the business then maybe, hmm...
Lenz - I'm not sure about your maths (annual oz's X profit per oz), but will definitely generate a lot of profit and, I'd expect that 3mt throughput to increase over the course of the first 5 years of operation and beyond.
Exactly - the individuals posting on here questioning the economics are (deliberately?) blinkered to what's happening. There are still items that need to get addressed on funding, development plans etc. etc. But they will all be addressed over time and as they get ticked off the list the SP will react - my only question is can the SP get some early momentum and start reflecting future value/growth a bit more!!
One way to look at it is that GGP's Havieron stake is effectively a liability to NCM - and their ongoing P and L statement and balance sheet is worse off for it. There will be an amount NCM is willing to pay to remove that liability - the question is whether that amount is acceptable to GGP/shareholders.
It would certainly make sense for NCM, when working through the feasibility study from their perspective, to look at it from a 70/75% ownership point of view and also assess what a 100% ownership (with associated cost of buying GGP's stake) scenario would look like. They don't have to wait for the FS to do that but it would make some sense from perspective of approvals etc.
When the JV was agreed, if it was set as 70% for all the NCM development cost hurdles + a set one off (say 9 figure) cash payment to GGP for 5% none of this angst would exist and I don't think the SP would be doing much differently. Yes, I'm sure SD/ggp could do without the stresses of dealing with the option but, as you allude to below, GGP just need to get it done and get as much as possible - but don't hang your hats on that number putting some sort of cap, or even collar, on the share price. It's a slug of money coming in on back of JV deal done ages ago (that's great), it's based on a valuation that will certainly be of interest but will continue to evolve (and be debated whether it's right/wrong/fair/unfair etc.).
Dan mar - I appreciate it's hard to forecast the unknowns, and future cash flows (as valued today) get small in DCF modelling. I just think gold price will offset part of wacc and experience of Telfer (grand old lady - 35 years and still going), shows these long term projects can be worth more than point in time DCF...I mean, you can run the DCF every year and see it increase each time despite the passing of time/revenue...
Merc - For some, for sure - I do worry that there is a bit of overoptimistic thinking going on, which may be detrimental to how quickly the SP moves up. Nonetheless I think we're on an unstoppable march upwards and hope, whatever the 5% number is, the impact of the purchase happening - in terms of GGPs growth positioning and NCMs commitment to the long term development of Havieron - gets factored in to the share price (as it should).