Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Sprout, There was an RNS on 30th Nov that has totally changed the dynamics of the Greatland / Newcrest relationship. We're digging the stuff up together which means less price in the ground and more price on the market.
AISC is looking to be the lower end industry wise
Personally as a LTH my only concern WAS cash in the bank. With any venture, promising or not, cashflow is a killer. This concern is no more for me or at the very least delayed for 12months due to the announcement on the 30th Nov.
Not only is there cash, but there is enough for serious exploration which there is to be. Mr Heddle has demonstrated he is an extremely competent deal maker and frugal when it comes to spending shereholders money. Investors fully realise there is an element of risk after all its an exploration company!
2021 is going to be incredible for Greatland!
Need to think of results from now and consider the importance of the new arrangement. The context is Greatland expanding into mining now with a mining company that are very good at keeping the AISC low.
The threat of a lowball buyout has been greatly reduced.
Higher gains to be had and a massive year for exploration in 2021.
Thinking this latest agreement could be about buying time to obtain maximum value for Scallywag due ulimately to absolute importance of Telfer. Unproven areas PRE and BH are almost distractions at the present time. Spend 6months drilling Scally at our own cost and timeframe. Slowly releasing results in front of Newcrest.
If the grades are anywhere near to Havieron and shallow we will be on our way to Hydro's valuation at rapid pace.
have been provided by Greatland and Newcrest. Why not duplicate this approach?
Consider a JV with Greatland in the short term for % ownership. If results are great Newcrest will follow.
Or attempt to negotiate 25-30% Havieron approach with Newcrest directly.
SocialistB,
I for one welcome your questioning of the deal and providing a contrarian view. I shared your initial thoughts immediately upon reading the RNS and think many others did too.
Its hard to speculate why these arrangements were made in the manner they were, but clearly there was some pressure for concessions from Greatland. Personally I think this was due to the overly generous Havieron arrangement. I believe that Newcrest would have had to make an offer for Havieron or the entire company, possibly soonish, and the likely fear from GGP board was that this offer would be lower than the potential value of what Greatland has in the ground. Lets face it if they offered 60p a share they would likely get the company. Far lower than some, including me, believe it to be worth.
From Newcrest's perspective there is also a risk of Greatland entering in to arrangements with other majors in the area so am surprised Scallywag wasn't included. I think the timing of arrangement is linked to Telfer. I think it is a priority for Newcrest hence the deal. Its getting more and more expensive to keep.
Of course this is speculation, but there is no doubt that both companies are now closely attached (even at the hip) with any success benefiting both parties.
Lots of prospecting next year we hope with cash not being an issue.
S
1. Thinking 5-10 years down the line again. So bl00dy inconsiderate of GH to my short term gain objectives.
2. Secured company's future through this realistic arrangement with Newcrest. Massive derisking. Ofcourse there is a cost to this! Only goes to show what a seriously good arrangement we had with Havieron. PROVIDING WE STICK TO TOLL STAGE!! Leading to...
3. Speeding up Havieron.
4. Strategically positioning Greatland to toll arrangement as opposed to selling out for cheaper short term gain.
5. Cemented his future too (if there was any doubt) to Greatland going forward
6. No loss of equity. This is important now with fund involvement
7. Scally and Rudall exemption. I wonder why.....? duh
8. Exploration funds are fantastic. Remember how frugal and efficient the GGP team are on exploration. Have a look back at the RNS's to see how much Havieron and Blackhills cost GGP. Thats what i bought into. Greatland's research and exploration competence.
9. We are now the exploration arm of Newcrest. Trust has been earned and established by both parties. Learnt today Biswas is remaining at Newcrest.
10. There’s always Ernest Giles… Anyone, been trolling Newmont lately? Probably time better spent than slating this deal. Perhaps they'll be interested in doing a load of free work for us again?