RE: POG30 Mar 2024 00:22
So Bamps, in reality, with an ever decreasing ounce of gold production, a higher AISC than the POG, not to mention a rehabilitation costs that as of yet is unknown, can you tell us why Telfer is worth more than the $1 Shaun said he would pay for Telfer as a going concern.
If it wasn’t for Havieron & possibly a few satellites that may or may not be discovered over the next 5-10 years, Telfer was to be confined to the history books.
In my mind, I just don’t get where some think Telfer is worth anything at all.
They’ve spent an absolute fortune on it over the last couple of years just to keep it going until the ore from Havieron starts to come through.
If my memory serves me well, I think somewhere to the tune of $240 million was allocated just to keep the lights on at Telfer.
Now with that 2 year extension almost exhausted, and with no date currently forecast for the delivery of ore from Havieron, is it any wonder Newmont have decided enough is enough !
SD as always stated he’d love to buy the farm back, but at what cost’s, nobody knows ?
There’s still a helluva lot of work to be done and money spent, before reaching the top of the orebody, never mind processing the ore that’s to be extracted.
Do you think Telfer can still be profitable as a gold mine, or are you thinking it’s only worth, is in that of processing ore from other deposits such as Havieron and any other future discoveries, in other words, just a processing plant !
I’m of the opinion of the latter, just a processing plant, and as such, should only be worth scrap value for Telfer.
I’ve heard the arguments about how expensive a 20 million tonne per annum processing plant would cost, but how much would it really cost to dismantle one the size of Telfer’s, transport it to another location, and re-assemble it again ? Probably more than to construct a purpose built new one on site.
The only thing Telfer has going for it is the infrastructure that it provides, runway, accommodation and services such as water gas & lecky. It’s a bit like shoving asylum seekers into a disused Butlins camp at Pwllheli, that was to be Bulldozed to the ground until at the 11th hour something pops up to keep it alive a wee bit longer.
I just hope Shaun and the gang have everything in hand to deliver us everything they’ve said they would. Now is the time to see if their talking the talk, can actually walk the walk !
Let’s blumming hope so, or there’ll be some very peeved LTH’s including me.