Good chat about Telfer on HC27 Jan 2025 09:50
Https://hotcopper.com.au/threads/upcoming-catalysts.8106473/page-1296?get_post=true&direction=previous
Hi whatsup
A year or two ago I thought that Telfer might not be able to produce its own gold for much longer and the resource was running out.
I have since changed my mind on that, In that Australian Mining Review interview of 20/11/24 Shaun Day said that he had just been reminded whilst at Northern Star they bought 4 or 5 assets off Global Majors with mine life of less than 12 months, all of those assets are still operating 10 years later.
I think that Shaun thinks Telfer might be the same or why did he say it.
If Telfer was running out why did Newmont voluntarily shut down the mine with no gold/copper production to themselves for months, and then spend many millions fixing and guaranteeing the tailing facilities for A$30million and refurbishing the mill.
They could have carried on like Newcrest producing gold with leaky tailing facilities until it was sold.
Newmont could see a future in Telfer (bundled with their 70% of Havieron) and now own 20.4% of Greatland.
Shaun Day said "There has not been a better time to own Telfer since 2005". (Same Mining Review interview).
Telfer may have lost some of its higher grade gold but it has plenty of lower grade stuff around, and what was not wconomical 5-10 years ago is very economical now, and at over A$4380 per ounce today, will be highly profitable in the future.
There has been mining extensions (stage 7 and 8) allowed to Telfer West Dome open pit.
An extension to the Main Dome open pit and considerable opportunities underground.
West Dome Deeps had disappeared from charts during Newcrests tenure but back on, drilled by Newmont a few months ago and Greatland is excited (better grades) to see the results.
There will be other opportunities around Telfer, it is rumoured that there is gold under some of the surrounding infrastructure 30 million tonnes of ore at surface (greatly reduced AISC) containing over 500,000 gold/copper worth well over 1 billion Australian dollars to be processed over the next 15 months will be gradually supplemented by other finds which will continue to increase Telfers own mine life.
Telfer is crucial to Greatland now and will be their main focus, they started operating the mill in their tenure 15 minutes after completing the deal.
A resource update for Telfer will be announced March 25 and it may surprise to the upside.
There is now mention of a second decline at Havieron, if this goes ahead it would double its output to Telfer and take up the best part of 1 train, reducing some the dependency on Telfers own ore.
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