The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I believe that every one at GGP, NCM and Bynecut have the best intentions to get the decline completed ASAP. I believe they will get it done. I believe they will speed up when they reach lower levels and the ground is more compacted. It is obvious that this initial phase is not going as planed. How far behind are they?
This is the reality of investing in miners. They do deal with the real physical world.
I do listen Zoros. You just seem to take everyone who questions you as some personal slieght. It is not. I am trying to understand without becoming a mining expert what is going on. So the good rock is @ 400m. That vertical or length of the decline?
So we are behind. I am guessing a lot of these drills around the mine site may be checking the ground conditions and not looking for gold.
You say what am I talking about then you state we a 3 months behind. I think people, including me, got over enthusiastic about the decline. How deep before we can start really tunneling? Until we reach that point we cannot give a accurate estimate for completing the decline.
Telfer needing ore is unimportant if we cant get the ore out. The current decline is behind target. So we wait for the next quarterly for an update. I am hoping to see a big increase otherwise we miss 2024. What depth will the good rock start? I am confident that NCM have drilled where they are mining so the will know this answer.
If we sell 5% and the shares rise but the decline is delayed may be an opportunity to sell and buy back later.
This is not deramping. The early start is not going as fast as I imagined. NM also stating it has been delayed. How much we do not know. Can they catch that up? I am hoping when it hits better rocks we will start seeing large increases in distance. We may make up time.
Until the big guys move in we are in purgatory. We are actually very lucky because the main market ignores AIM and companies like GGP, no matter how good the fundamentals. So we have the opportunity to buy in at very low levels. GGP has strong fundamentals. It will become a full functioning mine. The 5% sale will go through. It has a large portfolio of other tenements with potential finds.
Only risks I see are natural disasters, meteors, geo politics and wars.
277m completed in 9 months, 5 years I was being optimistic. Of course the SP is affected by the time the mine starts operating. They can invest their money anywhere. Why invest here when nothing happens for 5 years. All the opportunities they can miss leaving their money parked in GGP.
Luckily we have the sale of the 5%.
Seen posts today stating over 40 million ounces of gold. Current price for that amount of gold is $72 billion.
Previous posts stating 2 million tons of copper. The price for that amount of copper is $20 billion. The current release means that the copper resource has expanded. It could be 4 million tons, $40 billion.
We are talking about a mine with over a $100 billion dollars of ore and we have 25%. This does not include Zipa and further finds.
I think a mine with over a $100 billion of ore is worth at least $10 billion. IMO 5% is worth at least $500 million. Giving GGP $500 million in the bank and 25% share of a $10 billion asset. That means $2.5 billion for us.
Valuing GGP at $3 billion or 75p a share.
It could be 5/6 years before we reach the top of the ore body. NCM and GGP do not seem perturb. I am hoping once we reach a certain depth the pace will pick up. If anything they seem to be going slower.
The 5% buyout will help the SP which could be completed by the end of next month.
Anyone have any experience of digging 3km holes in WA?
Buy and sell is just a computer guessing what the motivation is in a transaction.
If you ask for a share and pay a higher price it sets the text blue implying it must be a buy.
If you sell and accept a lower price the computer sets the text red implying it is a sell.
My reading is that the 5% will be based on what is now known exists with what they can infer probably exists and the potential that more gold exists in the tenement. You need people who are experts in this field on your side. They will need to be able to backup every claim they make.