Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Whichever way you choose to slice the Havieron pie, and however much NCM pay for the additional 5%, there can be no doubt that they've got a huge asset (35/40 years? More?) for relative peanuts.
That being said, it's still preferable to be working on hole 10 with a bucket and spade, decades from production.
There is always a 'cost' to doing business with a major but there are also fantastic benefits. Had we attempted to progress Havieron without the support of NCM then we'd have been diluted to hell by now, just to keep the wheels turning.
Like many here, I'm hopeful that we get a 'fair' price. Whatever the outcome, we are in a much better place with NCM than we would have been without them.
Roll on the news.
I know I'm getting ahead of myself but I have a couple of questions that perhaps someone will know the answer to.
Origin / Falcon have stated possible pilot production from Amungee next year.
I assume that this would require a pipeline?
If so, would it be reasonable to assume that discussions have already been had with a third party under an NDA?
I know it's a stretch, but might that third party also be our potential buyer?
Ah, we're still on the thorny, divisive issue of the 5% and what it may be worth.
Rather than arse around with MRE1, MRE2, PFS, SP, Mkt Cap, drill data, future growth, gold price, etc etc; I thought I'd take a different approach and ask myself what would BHP pay for Havieron right now if they could get it.
And I came to the conclusion that I have no idea - so I'll just wait.
It's going to be a pretty exciting couple of weeks
I'm pretty sure POQ said we wouldn't farm down any more of our 22.5%
If funds are needed then they would have no problem getting them by other means.
It's easy to forget after all this time but we've have the moratorium, we've had covid related issues; no income, and yet here we are with 22.5% in what could be the perfect storm to monetise our asset.
There are no guarantee's with anything but would you really want to be out now?
Ha, I know exactly what you mean schlemiel.
I think, if anything, the intensity of the obsession is becoming more marked the closer we get to commercialisation.
My kids are definitely bored by it and I must assume my two ex-wives were as well. Fortunately, I have a willing ear in my grandson (who is 3 years old). Hopefully we'll get a decent offer before he's old enough to understand what I'm talking about.
I would take issue with 'which definitely means a future stock issue that will dilute shareholder value.'
The RNS clearly said that Falcons share for 2022 would be covered from existing funds.
Even if we were to raise additional funds at some point this doesn't necessarily mean dilution. If they raised say, $20M, but this added $80M to the final sale price then I would have no problem with it.
There's a massive difference between raising funds to keep the lights on and raising to add value
Tend to agree Origin. We've got it covered for now so no immediate need for funds.
I thought this was interesting. 'Positive results here will provide a further line of sight to the commercialisation of the Beetaloo and could lead to a pilot development program in 2023.'
As with any RNS, one can read in to them all sorts of things. For me, this tells any potential bidder that the price per acre could increase significantly if we are successful at Amungee.
Could be quite an exciting year
Jeez - the RNS was only last week.
The P word is just a trader tool - its been quite some time since we raised to keep the lights on. Everything since has added value - you just need to wait a bit for it to be reflected in the share price.