RE: Was yesterday’s RNS the first revelation of a strategic master stroke?1 Dec 2020 23:13
SocualistB I think your spot on. Newcrest and Greatland are set to make billions and billions here unless there is a hostile take over. The only way to reduce the risk of that is to increase the share price of both companies. If both companies just sit on their hands, keep drilling and spend the next 18months doing a decline then the share price will stagnate. Both companies could loose everything
I assume you all watch gold rush? Smaller scale but same principal. Newcrest need gold rich pay dirt and quickly as Telther is running low. This new joint venture gives them this and after a relatively small drilling campaign, and no need for a log winded decline due to depth of gold, they can start processing pay dirt quickly thus generating more revenue for Newcrest and giving Greatland production which in turn drives both share prices north reducing takeover risk
The revenue pays off the debt and pays all future production and exploration costs. The 25-30% of hav then becomes pure profit, whatever happens with scallywag and Rudul becomes pure profit and us as share holders can just sit back and let the quarterly dividends roll in or sell their highly valued shares if we want quick cash.
Also don’t forget at some point we might want to build our own production facility. This takes time and money. Having an income stream gives us this option as well
Our biggest threat is a hostile takeover so sacrificing potential resource in the short term to make sure the company has a long term future is a very clever move. Unfortunately those that were in this to make a quick buck are bang out of luck.
Sign In
Follow the stocks
