Member Info for sandgrounded

That’s why we need to take action to get the sp up.

I suppose We could always ask Wyloo to pay for the warrants at 10p. Now that would be a positive!!!!!

Everyonesawinner,
“How can we get shafted SXX style we have funding for our 30%+, they couldnt raise the finance.”

You are correct if the status quo remains and Newcrest or Newmont remain the 70% jv partners.

But what if they don’t want to retain ownership and offer it for sale?
Could GGP raise the money to buy it plus the costs to bring the mine to production? Especially as we are in the midst of a banking crisis.
We had to raise around £60 million to get the finance for our 30%. So how much would we have to raise through a rights issue to get a similar leverage?
If we can’t buy it, then it could be offered to a third party, but what if they say we want the 100% or we are not interested?
Where does that leave The 70% owners if we can’t afford it? Do they put the project on the back burner and wait us out.? Or do they or another buyer make a low offer for our 30%? Any of those scenarios could leave our share price in tatters.
I know these are extreme what ifs, but there are companies out there squeezing us and trying their best to make it as difficult as they can to prevent us gaining the 100% of Havieron. In my opinion obviously.

Thanks Dip. I enjoy our debates. You are always courteous and answer the questions posed.
In the past I had the opportunity to plan for some events which involved risk assessments, where you had to assess potential risks etc. I also did a couple of projects assessing threats and opportunities in our organisation. That was too many years ago now, but you will see where I am coming from with my background.
All the best to you and your family and have a great weekend.

Thanks Dip. All you say makes sense. However should it come to the holders of the 70% of Havieron, ( whoever they may be), selling that holding, they will not be looking at the ‘5%MRE’ figure as the sale price. They will naturally want the ‘new MRE’ figure based on drilling to date, to base the sale on. If I was a shareholder of theirs, I would expect nothing less. So in reality is it better to wait and see our sp slowly sink with no news or to go on the offensive and get our sp up?
After all if we have a higher sp now, we can always politely turn down their offer if it is too dear. Not only that we may then have the means to buy a producing asset to bring in some revenue before Havieron starts producing. ( possibly another reason the sp has been held down to stop us from buying such an asset.

Dip, with regards to
“Circumstances however have complicated this where we now also have a compelling case to downplay the asset in the short term .”

Is it better to get the possibility of a buyout at a lower price when our sp is being decimated or to have Shaun issue a new Resource estimate now to boost our sp, so that we can maybe afford to buy it at a slightly higher price?
Don’t forget Telfer is a stone around their neck if Havieron isn’t producing next year. So they can’t ask too much for it.

Is this becoming similar to the SXX situation?

Price manipulated down so that any chance of getting loans to buy the 70% are unrealistic without massive dilution.

I am almost certain the opportunity to buy back all of Havieron will be available but we will not have the means to do it. As a result we will be left drifting waiting for someone to pick us up on the cheap.

I hope I am wrong, but I feel that the management are doing nothing to stop the drift. Delay after delay after delay.

I pressed the pin in the top right hand corner and it removed it until I started typing this note lol!

Is anyone else getting annoying videos of past presentations on LSE. If so how can you stop them please.

How many trillions of dollars are being made available to prop up the financial markets?

Now I wonder what effect that will have on inflation?

The central banks seem to be putting their foot on the accelerator pedal towards the collapse of this monetary system. Perhaps a new gold backed system is being readied to take over?

There’s going to be a hell of a lot of shorting going on today on the main markets.

I know it won’t happen, but it would be great if Shaun issued an updated MRE today,

Up 6% in early trade.
Is it the gold price, or a deal on the takeover, that’s responsible?

Ben,
I thought the same at first, but after consideration, the Newcrest shareholders are getting Newmont shares if they agree the takeover deal.
In light of the increase in the gold price, then you would automatically think that both companies would therefore benefit the same.

Manu17, you ask “So again I’ll ask why 34p down to 7p ? If it’s so good.”

Can I ask why you are still invested if you thought it was so bad?

It wouldn’t surprise me if we didn’t get any drill results this time. Shaun is busy promoting GGP around Europe this week and to be honest, I think he is keeping his powder dry until the Newcrest/ Newmont situation is resolved.
Keep a low profile for Havieron, keep its value down until we can swoop and take it back under our control.

Then again, by the time I have written 5his post, the results may be out. Good lu+k to all holders in either case.

Hi SG, I totally agree about the MRE, but SD was specifically talking about the FS, not just an MRE?

Thanks Zorba, my mistake, but if I can come back on this. Shaun got bank funding for our 30% of costs by using the pre-Feasability study and the cash element provided by the institutions to show we could afford it.
In the last interview, I think he said if we were to try and buy the rest of Havieron we could scale up the bank funding to do it. Wouldn’t that require an updated Feasability study to satisfy the lending criteria?

Zorba, interesting thoughts and watching last weeks interview, you get the feeling Shaun and the BOD, have a good idea which way this could be going.
However, just in case Newmont see something in Havieron, which means they would like to keep it in-house, it is probable that they would want to have all of it rather than the 70%. Therefore Shaun needs to have an up to date MRE to ensure a realistic value is put on it. Just my thoughts on it.

I accept what you say. The figure was used as an example. Cheers.

BOJO,
“ Might it be that Shaun suggesting the trucking costs would be high (comparable to building our own plant) be a negotiating lever.”

Exactly what I thought. Shaun could go into negotiations with whoever owns Telfer and say something like, “ without Havieron Telfer will cost 500 million to decommission and it would cost GGP 500 to build one. By letting us have Telfer we are both saving 500 million”!

Although a new plant would probably be more efficient than Telfer, 25 or 30 years down the line, you would have to decommission the new plant.
So keep Telfer running for 30 years and only one plant to decommission.

Get it for a negative price when buying the 70% of Havieron and both parties would be happy, I would think.