Member Info for sandgrounded

If GGP has right of first refusal if there is a change of ownership by the joint venture partner, then it will be interesting to see what constitutes a change of ownership.

would a Newmont takeover keep the status quo, or would that be classed as a change of ownership on Havieron? I think we would need to see the small print on that one!

Only when a decision to mine is made, I think.

It would be interesting to know when Newmont’s initial failed bid was made. Was GGP alerted then and was this the time Shaun started putting his experienced team together?
It may have been a defensive move by Shaun to protect our company from a bid for our 30%, or to look at buying back the other 70%, we may never know. Was it just a coincidence and was Shaun’s talks about accretive transactions, maybe a hint of what’s to come?
Tune in next week to find out. ;0)

DH, fully agree with you, but sometimes you have to play the cards you are dealt. There may never be another opportunity like this, so if Shaun really means he wants to make GGP a really big company, then maybe he has to take these chances.

It won’t be easy, we all agree on that, but if we all think 30% of Havieron is a company maker, then 100% is even more compelling.

Whatever happens, it is fascinating to watch.

It would be nice if the new MRE came out after we had bought the 70% of Havieron we don’t own and the purchase price was based on the old MRE/ Valmin code. I can dream can’t I?

Why does the balance sheet come into it. They will issue millions of extra shares, so by some peoples opinion, that is dilutive.

The fact that Newmont think it is worth it and more, by selling off parts it doesn’t want, is accretive, surely?

Further to my last, Newmont are proposing an all share buyout of Newcrest. Do they see that as dilu5ive?

So no company would ever buy any other company because it’s dilutive?

I think a deal as big as buying Havieron will need both shares and debt ( for building the mine).

Bamps suggested our 30% would give us 130 million profit, so 100% should be over 400 million. That will help to pay down debt.

Don’t forget GGP, have said they will pay back our debt for the 30% of Havieron costs in three to four years, so proportionately the costs for 100% should be the same.

Should the opportunity arise to acquire all of Hav from Newcrest, at a fair price and SD doesn’t take it, what does that say about his ambition to make GGP a multi billion dollar, multi commodity business?
He had to take it doesn’t he?

123 gold, I believe the next Hav results are due on the 9th March, the day SD is meeting the shareholders.

Apologies to Zoros. Spell checker must have kicked in!

The only confirmed valuation of Newcrests 70% stake in Havieron is US$840 million. That is calculated using the Valmin code of US$60 million for 5%.

Until a new MRE is delivered, I can’t see how any other valuation would be considered by the markets, Bankers etc. as Zoroastrian has stated previously, that is what our sp is based on.

It was extremely fortuitous then, that both GGP and Newcrest decided to delay another MRE, wasn’t it?

Would the companies agree on such s price with s bit more for Telfer and other j/v’s belonging to Newcrest?

Remember if it’s an all share deal, when the new MRE kicks in, Newcrest or Newmont will see the value of those shares rise.

I agree. I think Carlow should be prioritised.
The other targets ( I think) are speculative and require deeper drilling, so maybe more expensive to drill.
I think they are gambling on a Havieron type drill result which is quite ambitious when funds are limited.

Apologies Culpepper. The written word can be construed in different ways.
I do enjoy your posts as you appear to be someone interested in making a profit, whilst not falling in love with a share.

We are all in the dark over possible outcomes and to have different thoughts and ideas shouldn’t be seen as confrontational but a healthy debate. One of the many people on here expressing their views could well be right. Then again none of us could be. Expect the unexpected lol.

Culpepper, Wyloo with their warrants have 15% of the company at this present time.
Raising a billion dollars (possibly 850 million pounds) will need over a billion shares to be issued. Wyloo could easily increase their holding .

I’m hoping not, but you need to be aware of all the moves in a game of chess.

Further, under takeover rules, the company making the offer has to offer the best price it bought shares for in the previous 12 months. So don’t expect a large premium.

I would prefer an all share buyout of Newcrests share of Havieron. To raise cash via a share issue, leaves the possibility of Wyloo reaching a certain percentage of GGP, which could trigger a takeover offer of our company.

Newcrest/ Newmont could always do a share only deal for Havieron and Telfer district.

Shares issued at present value of 8p. Once mining and processing gold, who knows what the sp will be, but they will be making money on it.

One reason as I have said previously in why the sp has been kept low.

GGP may get Newcrests assets at a reduced price though in exchange for those shares at 8p. Who knows, but both companies benefit, I would think.

We may need another general meeting re Pre-emotion rights if they go for it. Let’s wait for Thursday.