We are now in a different league17 Oct 2024 09:24
When it comes down to finding the next big discovery !
GGP have suddenly transitioned itself from an exploration minnow with a 30% position in a gold discovery, to mid cap miner who now owns 100% of an existing mine and all the infrastructure that comes with it, along with 100% of what will probably become another of the great gold/copper mines in WA, with a minimum 20 year LOM.
We don’t need to race out there pegging out potential prospects anymore, we can do as the majors do, and let the rest of the junior explorers find the next potential discovery.
What was it Rick Rule said “If you got all the junior explorers together to form one company, in a good year you’d lose $2 billion a year”. So let the juniors do what they do best, and go out and find the next BIG discovery and bring it to the attention of GGP. Because if it’s worth pursuing, then I’m sure Shaun & his team will be all over it like a rash.
As he’s stated many many times, GGP are out there looking for Tier 1 assets.
His hub & spoke plans for Telfer will hopefully be delivered by the small caps in the area, because where else are they going to send their ore ?. GGP own the only mill in the area, so have no competition when it comes to what they want to charge to process anyone else’s ore, but you can bet one thing, it won’t be cheap, even if GGP are in a JV with that company, they’ll be running Telfer as a standalone business, whereby it’ll have to stand on it’s own two feet. Even the ore from Havieron, I can see getting charged for the processing facility. But in GGP’s case that’ll just be a case of transferring profit from one set of accounts to another, so won’t matter in the end as all profit will end up in GGP PLC, if you know what I mean.
Each mine will be run independently from each other for many business reasons, so that if one fails it doesn’t bring the rest of the dominoes down sort of speak. Just all good business practices.