Member Info for schlemiel

Those new buyers of GGP need to ask themselves why they weren't buying GGP at far lower prices or if they weren't aware of GGP then why weren't they aware of GGP?

PaddyGall and others were aware of GGP many months ago. What are they doing correctly that others aren't?

Being sat on a fat loss triggers stress which is then expressed as anger on these boards. I understand that. It doesn't serve a purpose. You have to learn how to find those stocks at an early stage of the game. Jumping on a steaming train at full pelt is detrimental to your wealth and health

https://stockhead.com.au/resources/bhp-awakens-from-slumber-on-australian-farm-in-deals-with-encounter-copper-tie-up/

Look above. Now I can't trade ASX yet but there are small miners on there with real potential vis a vis GGP months ago. You've gotta scratch around in the undergrowth to find the gems. That takes diligence and effort

For what it's worth I believe GGP will come good, in time. The volumes and price action this week have been something to behold. I have no idea who or what is responsible. I am sure time will reveal the answer

Don't patronise me fella. It's tiresome.

Wrong. Never, ever relax or lower your guard. This is the stock-market and can rip your throat at any time. Yes, try and take informed decisions when buying and selling but never take the market for granted

He's a pretty switched on and well connected Aussie mining journalist so worth taking note of this musings

Looking back I should have held GGP and SOLG..I still believe both companies won't be around in the next 12 months. Quality exploration assets and world class discoveries

IC View

Aim explorers often have a fight on their hands to even make it to the junior exchange, competing for investor, analyst and institutional attention and having to keep asking backers for cash. Greatland has so far offered an example of what happens when it goes right. That is not to say it will all be smooth-sailing from here. Adding ore to an existing processing plant presents challenges and financing and construction are often low points for miners.

end

One 2018 hole at Havieron saw 275m at 4.77g/t gold and 0.61 per cent copper. Explorers hope to follow the mineralisation (where the metals are in the bed rock) with the drill rig, and by drilling dozens of holes, can work out the size and shape of the area they want to mine.

Alongside the drill results, a tie-up with Australian gold major Newcrest Mining (AU:NCM) in March last year gave it credibility and a financial backer, meaning Greatland has not had to keep going to shareholders for money during the development stages like other Aim resources companies.

There was consistent improvement in the share price up until 2020 but it was this year that the company’s share price exploded, going from under 2p at the end of 2019 to 12p at mid-year and then double again since then.

The former rising star SolGold offers an interesting comparison. It is now ensconced at the £500m-£600m level as it develops the Alpala deposit in Ecuador, which is more advanced than Havieron. SolGold also owns 85 per cent of Alpala, as opposed to the 30 or 25 per cent of Havieron Greatland will end up with once the current arrangement with Newcrest is finished, where it pays for exploration work in exchange for a stake in the project.

Alpala already has a mineral resource estimate – how much metal is in the ground – of 9.9m tonnes (t) copper and 21.7m ounces (oz) of gold. The mineral resource estimate for Havieron is coming by the end of the year.

The major difference for investors between SolGold and Greatland projects is that Greatland does not have to build a processing plant, giving it a far cheaper and faster route to production. Newcrest is funding development because its nearby Telfer mine is running out of gold, with a life of only a few more years. The idea is to truck ore 45km from Havieron to the Telfer plant.

The operation has a mining lease from the WA government, and construction of the major entry point to the mine (the decline) should soon begin, even before a feasibility study is done.

The flipside of that deal is that shareholders will end up with a smaller share of cash flow. Mr Heddle said his company was effectively watching on and getting ready to fund its share of development. “Newcrest is moving forwards quickly in terms of everything that needs to be done to actually turn this into a mine,” he said.

Even with the bulk of the financing to be covered by Newcrest, Greatland will still have to stump up its share. The shares doing so well could be an encouragement to raise the capital on the market, but Mr Heddle said debt financing was the aim.

The company is also exploring other prospects within the same licence area, which Newcrest has first right of refusal on if lightning strikes twice for Greatland.

cont...........

Valued at £1bn with no revenue: Greatland Gold’s incredible rise

Loss-making tech companies are routinely valued in the billions despite no hope of near-term profitability. But the mining industry really takes the cake on hopeful valuations. Companies without revenue, let alone a profit, can shoot up as investors try to time both a commodity and company’s high point.

Last week, Greatland Gold (GGP) hit an all-time high of 27p, taking its market capitalisation over £1bn. This is the same size as Highland Gold Mining (HGM), a 300,000 ounce (oz) a year producer with a forecast cash profit of $286m (£221m) this year, according to FactSet.

Massive ramps by pre-revenue mining prospects are not uncommon. See SolGold (SOLG) in 2016 or Bushveld Minerals (BMN) in 2018. Greatland Gold has blown these stories out of the water. Investors who liked the look of it in 2018 would have a return of more than 4,000 per cent.

Chief executive Gervaise Heddle told Investors Chronicle being an explorer was not easy.

“The modern mining industry really is an all-or-nothing industry, it is a scale industry, and you need to find deposits of significant scale to really make a success of it,” he said.

“We've been fortunate that we have found a significant copper-gold deposit, we're also very fortunate that that deposit happens to be only 45km away from a large gold processing plant, and fortunate to have a good partner in Newcrest [Mining].”

The company does not yet have an official estimate for how much gold and copper is under the ground at its Havieron prospect in Western Australia, although this is expected by the end of the year.

The company’s valuation has been rising steadily since last year, as drill results from its Havieron have been rolling in. Most explorers report grades over just a few metres, giving them higher gramme-per-tonne figures (testing is done in grammes or even microns while gold mine production is reported in ounces).

cont........

https://www.resourcesrisingstars.com.au/news-article/fyi-investors-alcoa%E2%80%99s-cheque-book-revs-interest-wa-high-purity-alumina-venture

Meanwhile in Ecuador, anticipation builds around a possible BHP or Newcrest bid for SolGold and Sunstone looks set to rise on back of Bramaderos project.

25th September 2020

Barry FitzGerald

'SolGold/BHP/NCM

Things are heating up around future ownership of the Cascabel project in Ecuador, the monster gold-copper deposit currently owned by the Brisbane-based and London-listed SolGold (85%) and Canada’s Cornerstone Capital (15% direct, 21.4% including its SolGold stake).

The Alpala deposit on the Cascabel concessions is rated as a Tier 1 deposit, with our own BHP and/or Newcrest positioned to take control by bidding bid for SolGold if they so decide, using their respective 13.6% stakes in SolGold as a starting point.

A standstill agreement prevents BHP from moving on SolGold until October 19 and ahead of that, SolGold has made a scrip-only takeover bid for Cornerstone – a project generation group that drilled the discovery hole in 2014.

Cornerstone has rejected the SolGold bid in no uncertain terms and at the same time has done a bit of a Mad Max by telling BHP that if it does want to move on SolGold, it should “talk to me” about its 21.4% stake.

In an interview with Kitco, Cornerstone CEO Brooke Macdonald pulled no punches, remembering Cornerstone, like BHP and Newcrest, is not happy SolGold sold off a 1% net smelter royalty on the project to Franco-Nevada for $US100m to keep its independence going.

“After October 19, BHP will be free to talk to Cornerstone about our 21.4 interest and join us in our efforts to change the SolGold board to create a board that will act in the best interests of all shareholders and stop breaching their agreements with Cornerstone,” Macdonald said.

That’s all interesting stuff. But it was Macdonald’s comments around SolGold’s “dead in the water” scrip takeover bid for Cornerstone that made for interesting reading for those prepared to look beyond the ASX.

Macdonald said the SolGold bid represented 1.4c per pound of copper equivalent versus the 7c a pound seen in other recent copper transactions.

“Cornerstone has a unique position of interest to any potential acquirer of Cascabel so we are not going to sell the company cheap,” he told Kitco.

He said that when SolGold trades in London at 27p (last sale was 25p), Cornerstone should be around $C6.50 (last sale was $C5.99).

“We are also trading below the $C8.67 that our top three shareholders paid when they swapped their SolGold shares for Cornerstone about three years ago. BHP’s price for their block of SolGold would imply a price of $C11 a share,” Macdonald said.

“And 7c a pound for precedent transactions would imply $C18 a share,” a smiling Macdonald said.

So while there could well be a bid coming for SolGold from either BHP and/or Newcrest, it looks as if the ball will start rolling with Cornerstone being in one of the bidder’s err….corner, and at a price well above its current levels.'

https://www.resourcesrisingstars.

'lasts'

Only a takeover can save us all from the insanity that will almost beset us all if this last another five years or more. Come on BHP, we need your soothing medicine ( a cash offer) and pronto although any major offering a lorry load of cash would be most welcome

wider market panic

If CGP do accept Mather's offer will it be because they are aware of an offer from BHP on the table? SO CGP accept SOLG stock knowing that in a few months their SOLG stock will be bought at a premium by BHP?

BNamericas: What does the constitutional court ruling imply for INV and its Loma Larga project?

Barreno: 'Although we must regret the environment that has been generated for the development of the industry in the medium and long term, the opinion has ratified the fundamental right of all mining concessionaires in Ecuador to legal security. It affirms that this is transversal to all other rights and the rules of the game cannot be changed.'

BNamericas: 'So the projects that are already underway, like Loma Larga, will not be affected?

Barreno: 'That is the legal interpretation. In its ruling, the court clearly confirms that the popular consultation can only have future effects and is not a consultation on the rights previously acquired by the companies. Therefore, ongoing mining projects can continue.'

With the opinion, the validity of the mining rights and all the stages involved in the activity have been ratified.'

The mining titles granted by the state guarantee companies that they will be able to carry out prospecting, exploration, production, benefitting, transportation and commercialization of minerals included in the concession.'

https://www.bnamericas.com/en/interviews/inv-maintains-loma-larga-schedule-despite-court-ruling

It's not about building a mine. It's about owning the licence that provides reserves, income and profits and no doubt the upside from further exploration at Cascabel. I give up

Spot on BarryLad. That's my thinking as well

Why would BHP agree to an extended Standstill Agreement of two years? Yes, two years. That's how keen BHP is that it would agree to Mather's demands that they remain silent on any SOLG issue.

Mate, it's not about building a mine, it's about having ownership and control of the asset which then delivers the income and profits to the owner of the licence. BHP want control of Alpala because they want its reserves, its income and its profits. They don't want to be a shareholder of SOLG. Why can't you see that?

Anyway, let the future take its course

And BHP and Newcrest sit around scratching their fat, experienced, hairy miners asses while Mather who's never overseen the building of a mine in his entire life constructs this most complicated of engineering challenges?

And BHP who desperately wants to get its hands on Cascabel watches from the sidelines as someone else builds a mine they themselves should be owning, building and operating.

SOLG to mining doesn't add up cos it ignores the presence of BHP and Newcrest who have no interest in being a SOLG shareholder..they're miners. I'll say that again. THEY ARE MINERS.The want OWNERSHIP and OPERATOR-SHIP

doing the business