Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Such a crucial period now between Newcrest and Greatland. Probably the most testy period I would say. Careers potentially at stake.
With clear knowledge that Havieron is a viable project it is surely in Newcrest's interest to push down on the value of Havieron if they intend to make an offer for the tenement. They could do this through basically inflating costs. 'Yes we will use block caving however need to transport (Costing 'x') and process at Telfer which is costing 'y' at present' etc
This could be another reason for delaying Scallywag results as surely before entering to any further agreement with Newcrest, even if not under obligation to accept by Greatland, GGP would want to know what fair value for Havieron MRE is.
Ofcourse, on the other side of that coin is undoubtably Newcrest desire to pursue other Greatland prospects if results are satisfactory. Would releasing Scallywag results reduce Greatlands negotiating position?
Holding no matter what but much at play!
Could quite concievably be multiple payments due to changing circumstances of having that horrible issue of the JV just keeps finding more gold.
So initial MRE 10m oz lets say in December. Newcrest decide to take up 5% of whatever fair market value is for that 10m. Then down the line overeall revision is icreased after drilling further to 15m oz. Newcrest pays 5% of additional 5m oz (most likely at that the price of gold at that time). Obviously this process will need to stop at some point but significant new areas within the tennement will need a valuation.
Been thinking about the statement below and what actually first right of refusal could mean in the context of the delay in releasing Scally results.
"Additionally, during the farm-in period, Newcrest will have a first right of refusal over the remainder of Greatland’s Paterson project (Black Hills, Paterson Range East and remaining areas of Havieron licence)"
What does 'first right of refusal' allow for? What is in this agreement? Do Newcrest obtain access to initial results before release to market?
If so a delay is understandable if results were good or even moderate. Surely at this moment the probability of a takeover is at its greatest especially if we multiple strikes and/or outstanding results. So exciting for all the right reasons!
Regretting not buying yesterday now!
- Nearer Telfer than Havieron
- Newcrest deal with Greatland is certainly a template of what could be. Even Rio would be interested
- Low number of shares in issue
- Could certainly raise cash to fund quite substatial drilling or JV