George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
My opinion I think Tasmania might be small but was an ideal opportunity for GGP. It was shallow, in a large gold mining area with a historic history of gold. Firming up the MRE with cheap drilling campaign could see GGP getting 20/20/40% with a local miner. It may only ear a few million a year but that would fund GGP wage bill and exploration costs. Shaun said he preferred tier 1 projects. A bird in the hand comes to mind.
MO,
Newcrest may have a different view on what to look for. They may have decided that GGP are looking for the next Havieron. They see Havieron as a tad in the deep side. They maybe wanting shallower, even open pit resources. Maybe small resources that could be additional feed for Telfer. If you are in the area then you might as well see what else you can throw in.
This is environmental approval. It will tell us how much ore they expect to mine, as you state. This is not approval by Newmount to mine. Even so it is still a good omen. If Newmount do pull out the mining can still continue with us and whoever takes over Newmounts interest. I am guessing Wyloo.
Not sure how all this works. Newcrest have submitted an EPA for the mine. This is one of the reguulatraity hurdles needed to start the mine. Yet they say nothing about it in their quaterly reports. They big up Cadia etc. Nowt for Havieron. The money, time and effort they are throwing at Havieron indicates the decison is made.
At the moment in time we having a 30% share in nothing. Havieron is valued at over a billion pounds. Newcrest with all its mines in production is valued about £14 billion pounds. When it is producing something it will of course go up in price.
I do not have a clue what is happening at Newcrest. Looking at the replies , neither does anyone else here. Not buying the 5% was a given until Newcrest said no. That was the biggest clue that Newcrest was not seeing Havieron as we see it. Not longer after that Sandeep was gone. I think they are to far along the decline to walk away. To much money invested. The delay with committing to the full mining should tell us something. I do think Havieron will become a mine. It will happen because Sandeep bullied Newcrest to start digging and wait for the results later. That is my opinion. What Newcrest are thinking we will have to wait.
It seems that Havieron is not what Newcrest want. Sandeep went ahead with the decline putting a lot of money into this project. If he had waited for the the full drilling results he might still be CEO. His bravery is a god send for GGP. Without the decline the guys in charge of Newcrest would have called it quits. I am guessing that Newcrest will try and sell Havieron as a going concern. I very much doubt they would sell to GGP. Selling to Wyloo makes sense. I am guessing that Newmount will sell. I think Havieron is to deep. Unless serious amounts is found at depth then it will be a 300-500 k ozs a year mine. Not what these guys want.
I agree, I find it hard to believe they would just walk away with all the costs involved. No one here knows what is going on with Newcrest. Lots on here feel Newcrest are not as positive as they were. If Newcrest are looking to leave the Patterson region then it makes sense for them to do that as cheaply as possible. Selling Havieron to another party makes financial sense. For us, the closer the ore body we are increases GGP hand in these negotiations. The best hand we will have is when trucks are leaving the decline will ore in the back. The longer they take to make that decision the better for us.
If NCM walk away it will be a mess until a solution is found. How big a mess depends on lots of stuff. If they walk away from Havieron on the verge of production I doubt they care much about Rudall, Pascale or Peal. The best scenario for us is they go ahead. Next best scenario is that we have reached the ore body when they walk away. For Newcrest going ahead with the SLOS mining so they have something to sell makes the most financial sense.
Divide the price Newmount are willing to pay for Newcrest, $29 billion aus dollars by 2 Mozs annual production. Convert to pounds. Gives us roughly £7500 an ounce. Multiply this by 450kozs. Then by 0.3 for our share.
GGP share of Havieron is a tad over a billion pounds when in production. The other tenements price depend if we find anything. These tenements are worth a few million. That is the price we sold a couple of tenements to ***** for. Might be a 100 Mozs at Havieron. The price will be set by how much can be extracted annually.
How will this country pay for all the pensioners, the new houses, the new schools, new roads for a growing population. Were will all the new jobs for the new citizens. 40 years ago every industrial estate was packed with manufacturing companies. Now we have Pound lands, B&Ms, Home and Bargain, Aldi, Lidl. Throw the vast warehouse for Amazon, ASOS. All buying stuff from China and the far east. A country that lives on debt. Add the rest of Europe, France, Germany, Spain, Italy, Portugal. All printing money with the most productive demographic in each of those countries retiring on mass. Never mind next year we will have a Labour government. I see no reason voting. Now tell me why you think this country will have low inflation?
If we believe that inflation will rise. Looking at what our betters are doing in the west. Over 10 years gold could double, it could be worth $4000 an oz. It means that greatland have got their mine built in a low inflationary period and with low interest rates. A billion debt will half in value over 10 years. 300,000 oz a year production will be $1.2 billion. If gold quadruples it will mean $2.4 billion. If production reaches 450 koz and gold is 8k. GGP share will be $1 billion. The only solution the west has to it problems is money printing. It is a good place to protect your wealth from inflation.
Exactly how far along the decline are we? 1520m? The tunnel is wider and the ventilation shafts are deeper. All I want is the length. If they have to stop to build ventilation shafts and widen the tunnel in places, so be it. Adding how wide it is to the length is nonsense.The decline was 1500m in November. Or was it? In January Newcrest said 1800m. Now GGP are saying 1520m. Can anyone tell me how long the tunnel is?
Droverman, unless Telfer has gold or a way of earning money, smelting other miners gold for example. A buyer would be looking for a payment. The government will want proof that any new buyer has the finance and skills to decommission the mine when needed. If Newcrest are bowing out of Patterson then getting out as cheap as possible makes sense. Only a few companies will be big enough to buy Telfer and give the guarantees a government would require. It is a good opportunity for an up coming miner like Wyloo. Unlike Newcrest they are not to grand to own Tier 2 mines.