George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
The FS is based on the updated MRE that NCM released with their annual results last month. This was pretty much in line with the GGP MRE from March so about 6.5Moz AU Eq.
I agree that GGP could release another MRE but can't see what benefit that would bring to us in the short term. We needed to do it initially to take to the banks when sorting the funding and it also served us well in arguing the valuation for the 5%.
Shaun will be conscious of staying aligned with NCM - as he stated on numerous occasions - in a JV there shouldn't be a winner and a loser. We need to work together to bring the mine online asap with the minimum amount of disruption and fuss.
Eyes on the big prize - if the decline rate keeps accelerating then they will be in the ore-body by this time next year. Now that is something to think on and celebrate.
ATB - Paddy
It's a bit disingenuous Joe to state that the increase from 3.88bn to 5.35bn is all down to Shaun.
While it may have increased under his watch the total with all the options and the Pacific Trends settlement was closer to 4.3bn which were all allocated prior to his arrival. Most of these were options in the pennies so were always going to be exercised.
So as Shaun explained yesterday he has had to bring some equity dilution to the table but we are now fully funded to production and instead of having asset dilution we have held onto 30% of an ever growing Havieron that will be providing income for the next 20/30/40 years. As a reasonably large shareholder (in my world anyway) I of course hate to see my position being diluted as much as the next man but it's a means to an end - it's not dilution to keep the lights on.
Shaun has pulled a massive coup IMO and he has my 100% support (for what it's worth) - Paddy
Sprott have released a note today also.
https://sprott.com/media/5677/220912-ggp-scp-appointments.pdf
GLA - Paddy
Company Update note out from Canaccord today.
https://twitter.com/paddygall1/status/1569308018881482760?s=20&t=6s_B22VlF16AnyO7IGq5xQ
ATB - Paddy
My takeaway was when he emphasised the possibility of inorganic growth being ever more realistic with the addition of the quality people to the bod.
Small Aussie producer anyone? Entry to the GDX perhaps?
Exciting times acoming methinks - ATB Paddy
Love this,
" The Eastern Breccia averaged 56m @ 3.3g/t over 8 pierce points from four holes, but the four higher-grade hits saw 46m @ 4.7g/t. We think this is the greatest step-change today, as the Eastern Breccia evolves into either a ‘cave on (grade) steroids’, or a second high-grade SLOS front."
A cave on (grade) steroids - Lol.
New Sprott Note out this afternoon.
https://sprott.com/media/5663/220908-ggp-scp-drilling.pdf
ATB - Paddy
Interesting tweet from Artemis this morning - seems they are back drilling at AP001 from what I can discern from looking at the orientation of the rig and the background.
AP001 is very close to both Havieron (South) and Scallywag (West) - Interesting times.
https://twitter.com/paddygall1/status/1567824387562168320?s=20&t=xN-Ccir0qSashB6Gwblumw
GLA - Paddy
Hi Freddie - I guess they could, but we now know the resource size they will be basing the FS on as they said it would include drilling up to end of CY21 and that is what they published with their annual report last month.
So they know the figure they have to work with - they will have been working on the optimisation of the SLOS sizes, sequencing, etc, etc since the PFS was issued - they will also be bringing the volume up to 3mtpa in their calcs too.
They have been pretty clear in all their presentations up to now that the FS would be in the December quarter of CY2022 - Personally I can't see them delaying it past year end but we shall see. I'm not trading so again it makes little or no difference to me in the medium to long term anyway.
ATB - Paddy
I don't think so Mumbo - not indefinitely anyway.
Firstly it hurts Newcrest as much if not more than GGP as they are desperate to get that Havieron high grade into Telfer asap.
Secondly there is a clause in the JV agreement - read on.
"Following the delivery of a Feasibility Study, the Management Committee will meet to consider a Decision to Mine. A unanimous vote by the Management Committee is required to approve a Decision to Mine. If a Decision to Mine is not approved by a unanimous vote, then the party who voted in favour shall have an option to purchase the non-approving party's interest at fair market value."
Now I'm pretty sure the GGP representatives will be voting in favour of mining, lets see what NCM do when it comes to it, after all Sandeep has publicly said that he is very happy with his 70% as stands.
ATB - Paddy
@LA - the Newcrest PFS from last October said the following about the Feasibility Study -
Havieron Feasibility Study
The Havieron Feasibility Study is expected to be completed in the December 2022 Quarter and the study scope is
expected to include:
? Completion of a further infill drilling program by end of CY21 to increase the Indicated Mineral Resource
base for potential Ore Reserve expansion
? Completion of the growth drill program immediately below the Crescent Zone for potential Mineral Resource
expansion
? Further investigation and optimisation of the Sub-Level Open Stoping (SLOS) design and sequence to
include additional Inferred Mineral Resources that are currently being drilled with the aim of increasing
resource confidence that Indicated Mineral Resources can support production rates of 3Mtpa or higher
? Initial assessment of future development options with further resource growth in the Northern and Eastern
Breccia including evaluation of alternative, lower cost, mining methods.
Well we now know their updated resource to the end of CY21 came in at roughly the same as the GGP MRE of 6.5Moz AuEq so that will be the minimum they will be taking forward into the FS.
ATB - Paddy
Tick tock - updated results & decline progress incoming on Thursday. There were 7 holes that had "assays pending" in the last report 7 weeks ago. Hopefully we should at a minimum get the results from those and perhaps a couple of new ones.
More steady progress on infill and growth targets to be expected - could the decline progress surprise to the upside???
What a wonderful journey we are all on, the optimists, the pessimists and the people sitting on the fence. One way or another the GGP story is going to be one that will be recounted for many years to come.
GLA - Paddy
I would bring to people's attention the second line in the "Credit Approval" section of Slide 6.
- Each of the preferred banks has provided a credit approved terms sheet
Doing a small bit of research shows the weight that this sentence holds for us investors and the company as a whole.
"A credit approved term sheet is a significantly more serious document, and in most cases indicate that a lender has gone through an internal credit process, conducted its financial due diligence, and obtained credit approval to allow the funding to proceed (subject to documentation and final checks). These term sheets tend to be longer and more detailed. Sometimes, a credit approved term sheet is issued after discussion and negotiation of an indicative term sheet."
Subject to documentation and final checks - pretty relaxed here that debt funding is now only a matter of time and then it's full steam ahead with the DFS, DTM and the build up to reaching the ore-body and seeing that ROM stockpile begin to develop beside the box-cut.
Lots of other activity at Scallywag, Juri & Rudall to keep us interested outside the regular Havieron updates too.
ATB - Paddy