We would love to hear your thoughts about our site and services, please take our survey here.
Https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/newmont-widens-lead-as-top-gold-miner-nets-block-cave-know-how-in-newcrest-deal-75768724
"Telfer talk
Newcrest's Telfer, a gold mine in Western Australia with waning reserves, stands out as a front-runner to be snapped up if it hits the chopping block, according to Canaccord Genuity mining analyst Tim McCormack. Newcrest listed Telfer as a tier 2 asset in its Macquarie Australia Conference presentation earlier in May, and McCormack said gold junior Greatland Gold PLC would be a logical buyer.
London-headquartered Greatland Gold owns a 30% stake in Newcrest's 70%-owned Havieron gold deposit, which, if developed, could feed the Telfer facilities. Newcrest declined to exercise an option for an additional 5% interest in its Havieron joint venture in August 2022.
"I know the Greatland view on Havieron is that it's going to keep getting a lot bigger and better, and if that's the case, it might be attractive for them to try a stitch-up with Telfer and put the whole lot together and take ownership of it," McCormack told Commodity Insights.
With the addition to its board in December 2022 of Mark Barnaba, deputy chair of iron ore giant Fortescue Metals Group Ltd., and former Fortescue CEO Elizabeth Gaines, Greatland Gold has "built a team and a board now that's highly capable of executing and running big-scale mines," McCormack said. "I don't know why you would do that if you didn't have a bit of an intention to try to become an operator again."
Greatland Gold could not immediately be reached for comment."
2023 operations are under way at Scallywag in the past 10 days or so.
https://twitter.com/paddygall1/status/1658082563510943745?s=20
There appears to be a new clearing slightly to the North of the existing drill pad at Pearl and also you can see where there has been activity on the most Easterly of the pre-prepared drill pads at A35.
Quite early in the drilling season this year (slightly delayed due to the Cyclone) so hopefully we will be seeing assay results from the drilling before the end of the year this time around.
Anything worthwhile from Scallywag would completely change the dynamic around any potential deals again.
ATB - Paddy
Let the games begin....
https://finance.yahoo.com/news/newmont-inks-20-billion-newcrest-225440948.html
Attention will now shift to Newmont’s ability to integrate its costly and hefty target, extract savings and dispose of non-core assets to generate a promised $500 million in annual synergies. The Denver-based miner will aim to increase cash flows by $2 billion in the two years after the deal closes through portfolio optimization.
Newcrest’s Telfer and Havieron mines in Western Australia are likely to be among assets to be earmarked for sales, because the former is too mature and the latter too small for the enlarged Newmont, according to Daniel Morgan, an analyst with Sydney-based investment bank Barrenjoey.
“There’s a long list of gold companies that would look at all assets that become available,” Morgan said. London-based Greatland Gold Plc, already a partner in Havieron, was a logical buyer, he said.
Shaun addressed that in one of the Town Halls I believe.
A takeover would not been seen as a change of control. Newmont would just assume Newcrest's position in the JV and it would be business as usual.
Newcrest have been ripe for takeover and the rumours have been flying around about RIO, Barrick or Newmont being interested in them since I've been invested in GGP since 2017 so I wouldn't say nobody saw it coming.
The departure of Biswas was the opportunity that Newmont needed to sneak in the door for what looks like very good business on their part.
Divestments will be part of the deal - Tom Palmer indicated as much in his call last week, the only thing is what will they look to divest? Will it be one or more of their Tier 1 assets or will it be the Tier 2 asset that has a ready made buyer in the wings?
Only time will tell - whatever happens we are still in the win-win scenario, it's just the eventual size of the win IMO.
Looks like the Newcrest board are about to officially back the takeover deal.
https://seekingalpha.com/news/3965271-newcrest-board-backs-newmont-takeover-bid-bloomberg
All options are up in the air and in play now, just as good starts to hit me all time highs.
Exciting times for us all.
GLA Paddy
Bring it on is what I say....
Shaun has stated on many occasions that his ambition for the company is to build a multi-asset, multi-billion £ company. He can't do that with a tinpot AIM structure. If you can't see what is taking place in front of your eyes over the past 12-18 months then fair enough.
I have total confidence in Shaun's vision and ability to deliver it - as Bamps says, let him get on with it and if anyone has questions or concerns then he will be making himself available to answer those in person towards the end of May. What more could any shareholder in a company want - you may not agree or like his answers but then the option to sell up is always there too.
ATB - Paddy
This is why Shaun wants people of that calibre on our board. They have access to people and events in WA that most junior miners could only dream of.
https://archive.is/20230429195925/https://thewest.com.au/business/herd-on-the-terrace/herd-on-the-terrace-who-makes-the-guest-list-for-reserve-banks-first-perth-dinner-since-2018-c-10482635
ATB Paddy
Hi James - Shaun was questioned about the DTM timeframe and I'm pretty sure he said it would be expected in close proximity after the DFS was released. I think he mentioned 3-4 week period but I could be mistaken.
The timescales are getting nicely compressed now - First week of May is next week, won't feel the August deadline flying round, pressure building nicely with all the corporate moves and gold is doing it's thing, basing nicely around the $2K mark.
All in all - things setting up quite nicely, just gotta wait for it all to play out now.
Yes @Sureasblazes - Greatland have the option to take back control of 100% in the event that our JV partner (whoever that may be) decide not to continue with the DTM.
NEM or NCM may not be interested in 350 - 500koz per year (although I doubt that very much) but if they are not then I'm sure Shaun & team would be more than interested.
Bring it on - Enjoy the BH weekend everyone, get out and enjoy life.....
New note released today.
https://sprott.com/media/6418/230427-ggp-scp-drilling.pdf
ATB Paddy
That would be the goal of whoever eventually gains 100% control of the asset for sure.
A few Oz people that I have contact with are pretty much convinced that the NEM takeover of Newcrest is pretty much a done deal.
If we assume that whoever goes forward with the project will ultimately own 100% of the project and we know Shaun is more than interested in that scenario then it narrows down the options considerably - either Newmont are prepared to cough up an eye-watering amount for our 30% or they look to re-coup some of their outlay on Newcrest with a quick disposal of what is after all the smallest asset in the Newcrest portfolio....
Greatland are in a wonderful position here and have the team and resources in place to take full advantage - just remains to let the process play out now and see how the pieces fall.
Newcrest walking away from Havieron puts them on the hook for either putting Telfer into care & maintenance or the cost of closing it down and reinstituting the mine site - not happening in the near term with Havieron roughly 12 months away from producing high grade ore.
Havieron ore to Telfer is a done deal IMO, who will be mining Havieron and who will be processing at Telfer is still very much in the balance.
ATB Paddy
Listen from about 5:50mins
"come up with a home run" - "really significant discovery in his view"
https://soundcloud.com/user-596578261/5mmm-20230420-085510-meeting-recording?si=091c7d0ca78344689575bb812050c321&utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing
Lovely jubbly....
I would imagine that Shaun & the team are busy putting things in place to be able to position themselves to take advantage of whatever the outcome will be from the bigger NCM/NEM deal.
I'm more than confident that whatever strategy they put in place will be to our eventual benefit.
GLA - Paddy
Telfer needing Havieron ore yesterday is not going away regardless of who owns it - They can mothball Telfer sure but at what cost??? Hundreds of millions of dollars to reinstate Telfer or keep it on care & maintenance without contributing.
If our partner (be that Newcrest or Newmont) does not agree to a DTM then we get the option to buy the 70% back. Shaun knows that much smaller orebodies than Havieron can raise the finance to build a new processing plant.
He has all the aces up his sleeve - I wouldn't call that being stuck in hole.
New position at Havieron advertised on the NCM website again this morning,
https://www.newcrest.com/careers/current-opportunities?job=983563
"Who we’re looking for
We are currently seeking a Site Support Superintendent who will provide leadership and operational direction to the work teams, ensuring resources, capacity and capability are aligned to the work plans and Newcrest core values. You will also have a strong focus on providing a safe, efficient, and cost-effective operational control of the Havieron village and site facilities in accordance with legal requirements and company objectives.
Key deliverables include, but are not limited to:
Ensuring safety leadership is delivered through Newcrest’s Newsafe programs and risk reduction framework and supporting the safety first work culture.
Create an integrated team environment with an aligned approach.
Accountable for village services contract ensuring KPI adherence and standards
Maintain food safe license to operate, including East Pilbara Shire compliance inspections
Oversee the annual project delivery & capital obligations for village operations
Accountable for all financial and reporting obligations for village operations, maintenance and cashflow. Escalating issues and actions plans to address under performance and generating ideas to improve outcome
As the ideal candidate, you will come from a hospitality and/or business management background and be a committed and supportive safety-focused professional. You will drive and monitor change initiatives to improve the village lifestyle and experience combined with best for business outcome with contractor management."
Keep the workers comfortable, happy & well fed = a well run and productive camp. Keeping the pressure on to deliver on time.
ATB - Paddy