Member Info for schlemiel

Why is it such a good deal?

A forced seller…

Post its merger with Newcrest in late 2023, Newmont committed to selling 6 non-core assets for proceeds of at least U$2.5bn. Fortunately for Greatland Gold, Telfer was one such asset. Despite the scale, infrastructure and large gold endowment, the management-intensive combined open pit and underground operation sits outside of Newmont’s core competency.

…with one buyer…

Unfortunately for Newmont, without Havieron, the Telfer asset had a limited value when including rehabilitation liabilities. Adding the Havieron project to Telfer changes the game. It then follows that the only logical buyer of Telfer must own Havieron as well! This is where is gets interesting. Not only did GGP already own 30% of the Havieron project but it also had a pre-emptive right over Newcrest’s 70% stake. Put simply, there was only one logical buyer, and this put GGP in a great negotiating position.

...timed to perfection…

It is no secret that the gold price has been on a tear and recently crashed through all-time highs to U$2,900/oz. Given the deal was announced in August 2023, we speculate based on the value paid that the price for the asset would have been struck at least 5 months prior when the gold price was ~U$1,900. It seems that Greatland timed the acquisition fortuitously. In short, this represented a counter-cyclical acquisition, perfectly timed for the subsequent increase in gold prices.

The lay of the land

The Telfer gold mine was discovered in 1972 and first mined 47 years ago. Today the installed Telfer surface infrastructure represents the third largest gold plant in Australia, capable of processing ~20 million tonnes of ore annually. We estimate a replacement value of ~A$2bn. Meanwhile, the undeveloped ~8.4Moz Havieron orebody, less than 50km from Telfer, is the best undeveloped resources project in Australia.

Despite both a head office and an asset portfolio located in Western Australia, GGP is currently listed on the AIM sub-segment of the London Stock Exchange. We believe that this unconventional platform has constrained recognition of a uniquely high-quality gold production and development opportunity domiciled in Australia. GGP-L has committed to list on the ASX in mid-2025, which will increase price discovery in a sophisticated resources market, that is currently limited by a lack of quality mid-cap gold opportunities.

In December 2024, Greatland Gold (GGP-L) completed the acquisition of 100% of the Telfer Gold mine and the Havieron Project from Newmont (ASX: NEM). Not since Evolution acquired Cowal from Barrick in 2015 have we seen such a compelling opportunity for investors.

The art of the deal

Good deals don’t come along often, particularly in resources. More often, pro-cyclical M&A results in value destruction as peak-cycle commodity prices revert. Cyclicality is an absolute certainty in commodity pricing, and acquired assets are often the subject of massive impairments as soon as the cycle turns – for example Rio Tinto and Alcan.

General exceptions to the rule have been:

*The purchase of Tier-1 assets from motivated sellers requiring urgent balance sheet repair - for example Evolution’s purchase of Ernest Henry from Glencore. To quote Evolution’s Jake Klein, “if you are looking to be successful in M&A don’t find assets, find sellers.”

* The opportunistic purchase of unwanted smaller assets from major producers. Particularly those who have recently completed a major acquisition (e.g. Newmont / Newcrest). Historically, buying assets off major mining companies has been a great strategy for juniors, particularly when assets shake loose as part of a broader consolidation.

Gold deal of the decade : Why we are invested in Greatland Gold

Matthew Fist : Firetrail Investment

In December 2024, Greatland Gold (GGP-L) completed the acquisition of 100% of the Telfer Gold mine and the Havieron Project from Newmont (ASX: NEM). Not since Evolution acquired Cowal from Barrick in 2015 have we seen such a compelling opportunity for investors.

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

Https://www.livewiremarkets.com/wires/gold-deal-of-the-decade

24 February 2025

John Wood Group plc ("Wood" or the "Company")

Response to media speculation

The Board of Wood notes the recent media speculation and confirms that it has received an approach from Dar Al-Handasah Consultants Shair and Partners Holdings Ltd ("Sidara") in relation to a possible offer for the entire issued and to be issued share capital of the Company (the "Proposal").

Wood shareholders are advised to take no action in relation to the Proposal.

There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate.

In accordance with Rule 2.6(a) of the Code, Sidara is required, by not later than 5.00 p.m. on 24 March 2025, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for the Company, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.

The person responsible for arranging the release of this announcement on behalf of Wood is John Habgood, Company Secretary.

NM

$2953

Embattled Wood Group enters takeover talks with UAE’s Sidara

Source: FT

https://www.ft.com/content/e95b2a80-dd85-4163-bd76-3b316670d981

"No terms disclosed"

Takeover

Not much love for precious metal sector even with a roaring gold-silver price.

Https://www.apa.com.au/news/asx-and-media-releases/apas-east-coast-gas-expansion-plan

'Is it the oil company employees or KRG employees? '

Who physically controls the extraction of oil and its transmission through the pipeline?

Is the oil company employees or KRG employees?

Who has the leverage here if the ICG doesn't play ball? Can GKP simply refuse to bring the oil up from the subterranean reservoir and have it transported if their debts and bills aren't paid?

Hands on the spigot is where the power lies..

''West Dome Deeps could be 10 years life. Then a sub level cave 10 years +''...

Well, that's got me all orgasmic. I don't need this at my age

B21

Many thanks, appreciated.

Paddygall

@paddygall1

"Major major separate feature to the main lode which they are currently mining"

-

I'd like to know what this means. I've been in and out of GGP since for god knows but my knowledge of the art of mining is pretty impoverished

New CEO for a possible US listing

$2950+

Wanted, an expert in this area to explain the material and commercial significance of today's news. I am not that expert!