Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
sandgrounded
I do not think that others will be interested, NCM will own (if they want 70% of Havieron and part of other targets, they know when to fight and this one belongs to NCM.
Other miners or investors may want to buy the 25% at our price all the big miners work together on projects, so they may want the 25% for its value, and will have to pay the RIGHT price.
How do you value this asset?
Firstly these two companies are partners, and they should both have the same and full information as to the state of play.
I do not think the MRE is a requirement, as I have believed that drafts of all required documents are shared between the two companies, and are in a state of continued upgrading..
It has to be a level playing field.
On that basis there are really two values to be established, the value of the known, and the value of the unknown.
I would be very surprised if the valuations are within the 10% margin, but for the way it is worded that if outside the 10% the which of the values nominated by the parties is to be the fair market value.
This in itself stops NCM valuing it too low, and GGP valuing too high, both have good reason to try and value accurately.
Interesting times, it will be interesting to see the value put on the share by the brokers now this news is out.
Looking further at the method to determine the value,
there are three separate sections that require valuing.
The assets known at a set point in time
and the assets that are known to exist, but not able to be quantified
the assets that have not yet been found as we seem to be expanding in all direction.
Both companies will have a lot of work to do, but as I state it will be based on joint information.
The independent assessor WILL NOT ESTABLISH FMV, under the agreement agreed I assume in 2019 by GH, but check the 2 submissions and decide which is the best submission as a method of establishing FMV, and this is the FMV.
In order to maintain the good relationship NCM must put a very positive value on the project IMO, and a high value on the 5% applies to the 70% as much as the 25% for GGP.
This is not a takeover where you buy outright, we are still in a partnership, although it look like we will only have a quarter of the assets.
I see either an initial payment, maybe staged and other payments on the amount that is yet to be established or
A larger payment that covers for the yet unquantified.
As for a full take over I don't think so, but if they want it they they have very deep pockets and the price will double, on the first sniff, due to the number of LTH's that I think own over 50% the final price should be good, I cannot predict, and think any prediction will be wrong.
We are in a partnership, and need and should have the same information as NCM, so both companies have all the information.
Will we see it, I doubt too much sensitive information, that others could use to their advantage
I thank all for the positive posts, a great board today.
Looking at the method to determine the value,
there are three separate sections that require valuing.
The assets known at a set point in time
and the assets that are known to exist, but not able to be quantified
the assets that have not yet been found as we seem to be expanding in all direction.
Both companies will have a lot of work to do, but it will be based on joint information.
The independent assessor will not establish FMV, but check the 2 submissions and decide which is the best submission as a method of establishing FMV, and this is the FMV.
In order to maintain the good relationship NCM must put a very positive value on the project IMO.
This is not a takeover where you buy outright, we are still in a partnership, although it look like we will only have a quarter of the assets.
I see either an initial payment, maybe staged and other payments on the amount that is yet to be established or
A larger payment that covers for the yet unquantified.
How do you value this asset?
Firstly these two companies are partners, and they should both have the same and full information as to the state of play.
I do not thing the MRE is a requirement, as I have believed that drafts of all required documents are shared between the two companies.
It has to be a level playing field.
On that basis there are really two values to be established, the value of the known, and the value of the unknown.
I would be very surprised if the valuations are within the 10% margin, but for the way it is worded that if outside the 10% the which of the values nominated by the parties is to be the fair market value.
This in itself stops NCM valuing it too low, and GGP valuing too high, both have good reason to try and value accurately.
Interesting times, it will be interesting to see the value put on the share by the brokers now this news is out.
NCM are not messing about
This year as been a disaster for most AiM shares and holders in mining exploration,2022 can only an improvement.
Hopefully the assets Paul has added to Power will in the next year bare results that show their quality, and that we achieved them at relative low cost due to the market conditions.
This market is a waiting game things take time and if you do not understand this and the warrant situation, you should reconsider your investment strategy.
Newcrest are not buying 5% of ggp, they are buying 5% of an increasing asset at a FMV.
NCM have IMO to offer a reasonable amount given that GGP may have more assets they would not want to scupper other deals that they may want to get value from that would help Telfer become a very profitable asset, for what was a defunct asset that would have cost to decommission.
The one risk that NCM list relative to this in there reports if that Join ventures risk the parties falling out, hence something they will want to avoid.
They need GGP to have enough asset to be able to fund their part of any works, there is the requirement for GGP to fund 25% or 30%, if GGP cannot or will not, does that stop the development, I don't know what the agreement says.
I conclude is that it is in NCM interest to ensure that GGP are HAPPY with any agreement and that things stay of very very friendly terms, is the best for both companies.
you most like would not have the opportunity if the people that now exercise these warrants had not risked their money in the first place.
So don't moan, you can find out before you invest if warrants are awaiting exercise, remember that you have to do your own research, if you were unaware then dont blame warrant holder.
GLA
Very true my shares have not lost any value in the last year, for the one simple reason they are not for sale at the moment, they still have the same book cost, but they definitely do not have a written down value.
In fact my share are valueless until the moment I decide to ask for a price from my broker, and I will not consider selling at a loss sooner just keep them in the ISA wrapper and wait, I am lucky I most likely never need the money I have invested in pow.
The end result will be Charities and my family unlike that will be my children, but grand kids and great grand kids and maybe the next generation, will benefit, at some time in the further.
GLA
Please stop and think the share price is irrelevant, you cannot influence it and even is there were to be a takeover of GGP you would be in profit, sleep easy.
Bamps - you say
People shouldn’t panic about day to day movements.
Very true my shares have not lost any value in the last year, for the one simple reason they are not for sale at the moment, they still have the same book cost, but they definitely do not have a written down value.
In fact my share are valueless until the moment I decide to ask for a price from my broker, and I will not consider selling at a loss sooner just keep them in the ISA wrapper and wait, I am lucky I most likely never need the money I have invested in GGP.
The end result will be Charities and my family unlike that will be my children, but grand kids and great grand kids and maybe the next generation, will benefit, at some time in the further.
GLA
Please stop and think the share price is irrelevant, you cannot influence it and even is there were to be a takeover of GGP you would be in profit, sleep easy.
Newcrest also announced that it had received the necessary regulatory approvals to commence key early works
activities at the Havieron Project. As at 24 November 2021, 237 meters of the exploration decline had been
completed.
opulentia - Any shareholder representative would not be running the company, they would be a non executive member of the board - that is not like Local Housing Associations in UK.
All directors are there to look after the interests of the company and hence all the share holders, company law regulates companies.
As far as I am aware if you get enough support the item has to get on the Agenda, as we are the owners (75%ish), and then are voted on if the get a simple majority in favour.
It is not meddling, it does give a voice, investors express enough 'voice' here,
Fyi, the BOD is listed at Companies House as
STEPHEN FRANK RONALDSON (current) Secretary
MICHAEL ALEXANDER BORRELLI (current) Director,
SHAUN GREGORY DAY (current) Director, CHIEF EXECUTIVE OFFICER
PAUL DUNCAN HALLAM (current) Director, COMPANY DIRECTOR,
CLIVE JOHN LATCHAM (current) Director, ADVISER
One Share holders representative would not interfere with the running of GGP.
Is there any way that PI's can have a seat on the board.
A large number of Pi's post and read this BB, can it not be arranged that one of our number get put up to be as share holder representative director of GGP at the AGM.
The way most votes go it does look like a good possibility
Thanks Paddy for that.
Of course with the sophisticated equipment that is on site NCM (and I assume GGP) know what results they are getting long before the markets get confirmation via assay results, so they can talk like this, very positive, in negative times.