The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Hey, Greatlanders, on May 11 there will be the first Midlands meet, @ lunch time if interested please email ggpmidsmeets@gmail.com venue depends on numbers location will be somewhere near
M1 J24, A50 ,A42 junction, easy for A38 from south.
If it goes ok then others may be at different locations, and times, do happy to have names if you are interested in others knowing your location etc would help in deciding next meet.
Newmont have made it clear they only want to concentrate their efforts on a very few major earners and havieron is not one of them.
Newmont know that to have too many mines diverts effort and capital from the major mines,so do not expect them to change their mind.
If banks will lend $A220 mil for 30% then a similar risk is $A750 mil. for 100% this is why the high power board of directors has been assembled, People who have the confidence of the business and banking community over there.
However if ggp own 100% then the figure could be more than a pro rata figure as we cannot then be held back by our major partner.
Once in production $A1 billion, would not be an issue, as most of the development has been completed.
Where being bought out is concerned a lot of the PI's are not likely to vote unless the price is eye watering and it would need to be put to a vote.
Ben, before I read this post I was thinking ' No News is Good News ' given the situation/anticipation, should we enter into negotiations when do we get RNS's issued, do we get an RNS if talks breakdown.
Ben:
I think selling Havieron even if an Eye watering amount would have to go to shareholders
Purchase of a Telfer package or the 70% I don't think a vote will be required or unless we cannot fund through debt, a very large dilution I would hope we could vote on but as we (PI's) cannot fund, so could we turn a deal down, I doubt it so what would the point of a vote be?
Overall I think the strength of our Board with Shaun leading will do the right thing and pull off the deal with dilution (if any) considerably less than the increase in the business.
MH: I could not agree more, it could be a very very long six months each morning I check RNS's from my portfolio, and the one I want to see is the one that tells us the future of Havieron.
I think it has to be positive for GGP., but it is like watching paint dry, I need to get my 7pm's back, once GGP is sorted the rest do not matter.
Https://www.careermine.com/minisites/newcrest/job/2243021/superintendent-metallurgy/ (Thanks to SH on x)
I take this as both Telfer and Havieron as being unaffected in the running of both during the sales process, so as soon as we get the water under control you can expect the decline to underway
From a Newmont position I think having decided to divest their thinking is:-
As manager of Havieron, they continue to proactively manager, why?
They have an agreement (JVA)failure to act correctly would be a breach, so work proceeds as planed .
By continuing any expenditure should increase value, provided the DFS is completed.
At Telfer, it about breaks even, so cost free.
Telfers only long term value according to them (ex Newcrest plan) is as a plant for Havieron.
Sale removes liability for reinstatement.
From Greatland position, the above accepted.
With keener focused management Telfer tenements may have life to make running Telfer a free ride being breakeven to a small nice profit.
Both companies, as explained on the BB's many times, very good reasons to cooperate to pass the Telfer Package to Greatland.
A lot has been made of the ROLR, but in reality, this does stop others wasting money on trying to take the package, but Newmont do not also want to waste money, so the most efficient way of divesting the Telfer package is to offer it to Greatland and see firstly if they can fund the deal.
We must be in this stage of the disposal.
Were is the meeting point where the bargain will be struck between the the two?
No different than when you are selling your house, the sellers perceived value means nothing, it is what a buyer is willing to pay, on the day, against the unknown of refusing to sell.
The buyer has the restraint of raising the funds (If not cash rich) for the purchase this is a relatively open process how often does it come down to the buyer saying this is all I can afford (raise),and the seller bends a little to make the deal.
I see a lot of parallels and this period with no news I (think) hope is being taken up with all the backroom stuff like a house were the seller and the buyer both hope they can both implement the agreement, subject to all the other bits falling into place, survey and valuation (due diligence), Legals, and funding.
In the UK this can take months on a house, with this deal we have the DFS as a major milestone the banks will almost certainly want this prior to the completion of the deal.
So we can only await the second half of the year, when DFS, Funding, Acquisition, ASX, DTM, in quick succession.
As always just my thoughts as of today, happy to see other opinions.
MH01: Thanks for posting.
A great listen, and many interesting bits, they must have a direct line to Shaun, and their investment in Greatland is measured, they could be behind the ASX listing of GGP.
I am very happy for them to be looking after their investment in GGP, as I have to assume my interest align with mine.
Ben,
Drop me a mail and we will try to meet up when I get back at the start of April after winter away, when we discussed before there was someone else but I cannot find the post.
(If you want a meet in the East Midland drop me mail, if you live in or near north Nottingham then when I chat to Ben, w will see how big/small we want an informal meet up)
I wanted to arrange full Midlands meets but my circumstances have not allowed to date, I have a list of about 20 from GGPchat.
ggpmidsmeets@gmail.com
I have copied this from the current 'ASX listing' thread, as equally relevant.
I think the Cross-listing is necessary for the benefit of all, at the right time.
The Supers are so big in Oz, that the share price cannot be messed around with once you are listed on the ASX.
To fund any purchase be it Telfer package, the70% or another unknown mine or project,
we have three options
1. Debt, but debt is only available if the lenders consider us stable enough to ensure they benefit from the loan.
2. The issue of shares to the seller with tie in to allow us to develop/integrate any purchase before they get paid.
3. A capital raise, hopefully only equal or less than the cost of the purchase.
Each of which can bring with it a change in the direction of the share price and longer term a path to dividends if it does then it may be welcomed in that it makes GGP the company PI's want.
I would prefer debt, we are where we are and only governments have 'Magic money trees' we PI's have to trust that the team GGP can chose the best for us.
I have copied this from the current 'ASX listing' thread, as equally relevant.
I think the Cross-listing is necessary for the benefit of all, at the right time.
The Supers are so big in Oz, that the share price cannot be messed around with once you are listed on the ASX.
To fund any purchase be it Telfer package, the70% or another unknown mine or project,
we have three options
1. Debt, but debt is only available if the lenders consider us stable enough to ensure they benefit from the loan.
2. The issue of shares to the seller with tie in to allow us to develop/integrate any purchase before they get paid.
3. A capital raise, hopefully only equal or less than the cost of the purchase.
Each of which can bring with it a change in the direction of the share price and longer term a path to dividends if it does then it may be welcomed in that it makes GGP the company PI's want.
I would prefer debt, we are where we are and only governments have 'Magic money trees' we PI's have to trust that the team GGP can chose the best for us.
I think the Cross-listing is necessary for the benefit of all, at the right time.
The Supers are so big in Oz, that the share price cannot be messed around with once you are listed on the ASX.
To fund any purchase be it Telfer package, the70% or another unknown mine or project,
we have three options
1. Debt, but debt is only available if the lenders consider us stable enough to ensure they benefit from the loan.
2. The issue of shares to the seller with tie in to allow us to develop/integrate any purchase before they get paid.
3. A capital raise, hopefully only equal or less than the cost of the purchase.
Each of which can bring with it a change in the direction of the share price and longer term a path to dividends if it does then it may be welcomed in that it makes GGP the company PI's want.
I would prefer debt, we are where we are and only governments have 'Magic money trees' we PI's have to trust that the team GGP can chose the best for us.