Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
The current Brucejack AISC is approx $950, not $743.
The current reserve figure is closer or 3.9m oz. This is included within the overall resource figure of 10.3m oz, though some of these ounces are not yet ‘proven’ as economic.
Long story short, you can play around with the above figures and get a range of $280/oz up to $700/oz.
Brucejack is a great asset, though there is no copper, hence better economics at Havieron.
All points to a nice chunk of cash in the coming months to secure GGP future.
Paid $667/oz (proven reserves) to buy out Brucejack. If we want to include the inferred yet economically unproven ounces, use $270/oz though this does not include the future substantial capex requirement.
An ounce at Brucejack (2021) costs 50% more to get out of the ground than an ounce at Havieron.
With that and the amount of capex already contributed by GGP, I could make a case that the in ground fair market value of our fraction of a fraction PFS (30%) could alone support our current market cap. Unfortunately for you, again, it’s a fraction of a fraction…of one of the ore bodies in the JV package.
This didn’t go well for you, though still better than when you though it cost $3,000+ to get an ounce out of the ground :) Bamps and Hydro won’t let you live that one down.
28p will be the floor for GGP as we progress in Q1 2022, and I don’t want to see you get left out.
BuyIntoGreatlandGoldLower?
BiggL, had to stop reading when you upped the oz premium by 50% based on 50% increase in gold price. What’s the % increase in per oz margin at Hav when you go from a gold price of 1,200 to 1,800? I’ll give you a hint, it’s three digits :)
Newcrest just purchased Pretiums Brucejack mine, with an economically viable (proven + probable) 4.2m oz, no copper, and a current AISC of over $950 which includes their silver production credits. Compare those economics to HAV, and don’t forget the future capex still required at Brucejack.
Newcrest paid USD 2.8b in total….
Newcrest paid $667 / oz.
You’ll understand soon enough.
Floater,
My $20k top up fund hits my account in the morning, which was meant to be my Christmas gift in the 12s…
…so I’ll join the deramping parade for the next 18 hours, after which the SP can resume its northerly travel ;)
I’ll start thinking about the actual 5% valuation tomorrow. The things I’m more excited about with this RNS are:
1. NCM want it and they want it yesterday. Time for the world to wake up.
2. Is there any doubt this is going to be mined for 40+ years? NCM is opening people’s eyes by being so proactive over 5% (option period opened last week!).
3. The GGP funding questions are over. $15M+ cash in the bank, likely an offer of hundreds of millions from NCM in the coming 8 weeks, existing loan facility, and I’m sure SD will have some asset backed loan terms sheets in hand by then for extra leverage bluff. We (can) have excess cash to get up to production, when the free cash flow commences. The path has never been clearer.
4. The FOMO and mystery over the next 8 weeks will coincide with drill results, North and Zipa, MRE2. This might be the tastiest 2 months we’ve seen yet….
5. SD with the midday RNS on Christmas week. Classic.
I thought 17 and 13 were my final top ups (been buying from 3p upwards).
Can’t afford to be inactive this week, this moving around funds to accumulate. It’s not even about price these days, it’s about accumulating shares for the future.
Cheers, Santa.
Those polite Canadians are really heating up with the commercial / corporate activity. In the last few weeks, we’ve had Brucejack (acquired by Newcrest), Great Bears’ Dixie (acquired by Kinross), Osisko (JV cash raise with Northern Star), and now Franco Nevada participating in a cash placing with Skeena, seemingly at around 90% premium to Skeena current sp. With it, Franco Nevada get an option for a 0.5% royalty in 2023 for a further $22m (CAD).
This is something that Rick Rule and others have been alluding to, and it’s starting to kickoff. Follow the money. Can’t wait until Franco Nevada start sticking their beak into our neck of the woods and the market gets wind of it :)
I have a decent sized holding in Great Bear. I’m not sure how you draw the conclusion of USD 200 oz for a Tier 1.
Dixie doesn’t even have a resource estimate. The purchase by Kinross allows for an additional premium upon a decision to mine, and IF there is a future resource estimate of over 8.5m oz. Again, there is no current resource, no copper, nothing like that grades at Havieron. If they get to the Feasability studies at some point, it will be difficult to be sub $1k AISC. Dixie is a greenfield project, no plant or infrastructure. Lots and lots of capex and resources required just to get to the MRE stage, much less feasability studies.
As a Great Bear shareholder I’m very ok with this deal; it’s an exploration company that has put a lot of holes in the ground and found decent grades, though no resource estimate, no infrastructure and really no path to production….yet the company was just purchased for $1.45b.
But Dixie is not a Tier 1, and I personally don’t think it ever will be, though it is a very good asset. Dixie and Havieron are night and day. Grades and width, copper, economics, path to production, infrastructure, etc. Very different.
Oh dear, BiggL. You’ve not heard of the 4.2m resource (proven + probable) at Brucejack? Do you understand this figure applies a mine call factor to those 10m oz figures and accounts for the stoping ops? And you don’t seem to understand the large capex requirements (drilling and alternative mine construction) which will be required at Brucejack, for NCM to grow this asset.
Why do you willfully ignore the Brucejack AISC even with their great grades?
Anyways, off to play Santa at my sons school :)
Absolutely, Hydro. The size of Havieron will bring us to the dance, the economics and copper will bring home the prom queen.
Even with avg grade of over 8g/t (wow!) the Brucejack (Pretium) AISC still seems to float around USD 950. I’m sure Newcrest can improve on this in time, though this will involve that pesky (significant) capex which BiggL says is not required.
In simple terms, $1 earned at Brucejack equals $1.60+ at Hav based on today’s copper spot. Premium premium ounces…what’s that Hydro, 40m you say?!
BiggL, the figures you give throughout your post are hugely misleading based on incorrect data. You’re using Pretiums own definition of resource estimate (10m oz) which they state is not entirely economic. Why did you not used their proven + probable resource estimates of 4.2m oz? This is even the figure Newcrest and Pretium use…
Of course Brucejack has great exploration potential.
Brucejack has no copper, and you again fail to understand the economics of Havieron.
Why do you not mention the Brucejack AISC well over USD 1,000, which even takes into account the silver credits?
Agreed, Spade. I’m still in profit even having bought some in the 30’s and 20’s. I enjoy the roller coaster, just confirms my conviction in the asset and the company and makes the end result that much more fun.
But nothing will make me happier than watching those brass balled diamond handers with averages in the 20s and 30s start being in profit on our way back up. Gonna be fun.
What a great thread. I’ll said it loud and proud - I love me some SD.
Best interview to date, and purely because of the Q&A. GGP has control of the questions from Proactive, and over the last 9 months there has been endless bickering and anxiety around the 5% purchase from NCM, why hasn’t SD bought shares, rumors about nickel, timing of the MRE2. SD took these queries head on,and knocked them out if the park.
No more bickering that SD is purely a money man, is NCM man in the inside, doesn’t care about PI’s…blah blah blah. This man is here to put his stamp on the company and turn GGP into a proper mid tier producer.
He’s now surpassed GH in terms of PR, in my view.
BTW, never has so much abuse been hurled at one poster (Hydro). Nickel…hehe…where are the three stooges today?