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Where is the price of gold heading?
These Aussie miners are becoming more and more attractive as gold goes up. I cant see sentiment changing until at least November with the US elections. Been accumulating personally and will continue to do so. There will be deals made and drills commencing throughout this period.
Gains could be huge
Interesting to see if other exploration companies follow the GGP model. Its not complicated but does involve transparency which has won the trust of shareholders. The excellence in Greatland for me is with the geologists and research.
The agreement we have in relation to toll arrangement will influence the figure we regard as price of gold in the ground. This is especially with the knowledge that Newcrest will be using block caving mining at a much reduced cost.
Its very interesting. Even after hundreds of valued posts by informed and well researched contributors i still havent got a clear picture on Au value in the ground.
Since we are informed that block caving is to be the methodology of mining the toll arrangement will provide the highest value. Based on this Newcrest would need to pay a very large premium for the 25%.
The 5% at fair and reasonable value may be considerably lower as it in effect ignores the method of mining. However, with Scally and the remaining 25% of Havieron under consideration a good price will no doubt be offered. But what price?
We should get a more detailed plan on drilling at Scally in the next couple of weeks at the very least. Am intrigued about timing here with respect to Havieron MRE release.
Only need to prove mineralisation to ensure further value consideration and GGP would want to release this information as close as possible to Havieron MRE news.
So with this in mind think we will have a little more time to wait.
Really interested in the results of 'red' drill results between 'cyan' and main area and step out to the North to the edge of the tenement as per Paddy's marvellous illustrated maps. Hoping this drill will provide reasoning for further drilling and delays. Its so tragic being forced to wait for value to be added.
Newcrest will want it all but this puts Greatland in such incredible position. I hope we accept (if it is made) the offer for 5% and stick to toll arrangement as long term would be great value. Maintaining involvement in Havieron will add leverage to negotiations of other sites.
Although immense short term gain wouldn't be the end of the World.
I am more convinced now that there is a contractual clause(s) that prevents a Newcrest approach for Greatland or even the remainder of Havieron ownership until the conclusion of drilling / formal MRE announcement.
There are quite a few reasons for these clauses to be in place including: Safeguarding of both parties interests but mostly protection for the smaller company, Fraud prevention (Insider dealing), Competition regulation, existing financial arrangement being in place that may have impact on value of company (Havieron works).
I could see an offer being made upon announcement of MRE for Havieron / Greatland (the company), but not before The value of Havieron is confirmed. If an offer is not made at this point it wouldn’t surprise me if both companies enter into an agreement to explore the rest of the tenement utilising assets in the area and personnel.
Either way its all marvellous for Greatland shareholders.