Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Let’s hope SD has more to say at the TH otherwise it will be over in 5 minutes.
He is clearly a happy man and Wyloo are mentioned every time he opens his mouth. It’s the funding details and the shape of the deal we need and clarity for shareholders that the new Greatland Gold is for us long suffering PI and not just Aussie bankers.
Nothing good can come from SD remaining silent and I really hope that Newmont and GGP have been working the detail through and are about the go public on a deal.
I don’t believe SD is going to put himself in from of the TH investor group without something to say. Without an RNS before the event though we are not going to get the answers we need.
6.3p a share suggest little market confidence we can perform the miracle.
Having just taken a battering over at AVCT I have spent this morning considering dilution for asset purchase and the impact on the SP.
I think the Town Hall is important to set the tone for how GGP intend to navigate any negotiation. We won’t get details but some clarity on what a good deal might look like is important.
SD has a load of options at 12p if I recall and Wyloo at 8.2p if I recall. My sincere hope is any calculation factors around these numbers to create a platform for the SP to grow and out both invested parties firmly in profit THIS YEAR…..
Finance and/or royalty payments to NMT has to remain the best option.
Long term once the gold is generating income and profit then everything becomes easier and I have little doubt the companies value will increase.
Great company. Love the Proactive Interview.
Feels like momentum will shift in our favour soon.
The most astute observation in the Sunday Roast is the statement that SD has been talking around the issue of divestment and GGP taking on Telfer for 6-9 months now.
This rings true to me. GGP has to be one of the parties Tom Palmer refers to as advancing discussions in the article from last week.
Things could move quickly this week. An RNS confirming an offer has been made would and the terms of funding would do a lot for the SP.
Hi Sandgrounded,
That’s the dream ticket in my view. An affordable purchase and a future gold production cut to Newmont.
We also need to remember development at Hav also needs to be funded and the lights kept on at Telfer for the next year as well.
All of this needs to be debt funded somehow otherwise the future for us PI’s looks very uncertain. A statement from SD leading up to the TH event would be good.
That’s the art of doing a good deal I guess Ben. For shareholders we want to see the value of the company grow by more than the cost of the asset.
Simple maths. Excluding Telfer as a gold producing mine and just looking at Hav. $500 per ounce profit x 8.4M oz of reserves is $4.2Bn.
Surely that’s got to be worth something.
Good post Unimaginative,
There is a risk to shareholders that GGP’s lowly MCP of £350M makes it an easy target. Least best option here in my view is a massive equity raise to Wyloo to buy up the 70% and Telfer.
Even that scenario could yield a decent return if the Hav / Telfer valuation exceeds £1.2bn.
More balanced thoughts would be welcome.
Would be good to know exactly why Telfer /Hav didn’t make the cut for Newmont.
Seems like some exciting months ahead. Options are 1) GGP go it alone with debt finance or 2) some sort of tolling agreement with Newmont at Telfer that divest the long term future of Telfer to GGP or 3) a new party buys up Telfer and/or Hav and we get a new partner.
I don’t see Newmont walking away as I was under the impression the JV defaults to GGP if that happens. Obviously Telfer is separate.
The SP could go up fast if things become clearer over next few days.
Markie is correct.
It’s also far from clear that fundraising will happen via a placing. The RNS also talks about strategic partnerships , letters of I tent to fund from the US Governement and other funding streams.
BRES have all the classic risk reward challenges other explorers have. At todays £8.3M valuation it surely has to be worth a little investment.
All the best
People are assuming Newmont would sell Telfer and the 70% and that a huge cash deal would be needed. However, a deal could take any form. For instance, a profit share arrangement for as long as Telfer stays open would be an excellent hands off way of making a long term return for Newmont.
All things are possible. My moneys still on the status quo. I think we’re going mining with Newmont.
Good luck all.
In takeover terms the Hav / Telfer asset is relatively insignificant. Neither NCM or NMT want or need to argue about these assets future. What they need is a full portfolio asset report that gets the deal concluded.
They only question I have is whether SD publishes a GGP updated valuation. Neither NCM or NMT are going to want that before the shareholder vote.
I suspect SD will be keeping is head down unless there is any other commercial reason to publish an update.
For what it’s worth, I reckon Newmont are going to use Hav / Telfer as an early post takeover good news story. My bet is on a massive resource upgrade, approved decision to mine and a takeover of GGP’s stake at sensible market value. Anything less and GGP simply won’t sell.
At the risk of tempting fate I might point out that the SP has been in the 7p to 9p range since August 24th 2022 having dropped to 6.7p on a couple of occasions.
It feels like it’s trading sideways to me.
I appreciate like everyone else invested i would much prefer the 9p end of the range but to keep suggesting the SP is falling is not entirely accurate in my view.
Probably hit 3 year low of 6.5p tomorrow now I have said that…..
There are too many people with their own agenda’s on here pedalling opinion as facts.
From what I can see the reality of being a small pawn in a huge M&A and the unquantified spector of raising money is what is driving shareholder sentiment and the declining SP today. At the start of the year the SP was 8.5p as it was on 6th Feb and again most recently on 12th May. At the start of the year we were all sat there patiently awaiting and resource update and the decision to go mining. Either announcement galvanises our position as a miner not an explorer and puts SD’s multi asset multi billion dollar Tier 1 mining company ambition on track.
Then the merger announcement. Both parties non committal about the future of Telfer and therefore unwilling to commit to Havieron and whilst the merger gets done this will almost certainly remain the case. Then the leak of potential funding inexplicably linked to ASX listing without a clear explanation bring the spector of dilution.
But the reality on the ground as I see it is 100% commitment by Newcrest to the ongoing decline works, funding for Telfer to remain operational until 2025 and a very high probability of a significant upgrade to the resource including significant Copper credits.
Right now, SD doesn’t control any of this but with the long term plan to go mining still appearing to be on track I am not sure he will be having too many sleepless nights. As CEO, what he does have to do though is look at every angle and every eventuality and clearly discussing and having actionable plans to raise funds is part of the Boards strategy right now. That seem sensible to me as long as any raise, if it happens, is explained and is linked to our long term company prosperity.
If we could all stop rambling on about unsubstantiated shorter attacks and conspiracy theories that our CEO is a rogue agent it might make this board a better place to visit.
It does feel increasingly likely that us early adopter shareholders are increasingly unlikely to see multibagger returns here.
SD’s focus is not of the share price, he is only interested in building a bigger company and right now we are in a very difficult spot. The chances of a raise at 8.2p seem very unlikely to me.
Depressing…..
I really don’t understand why people think NCM or NMT would walk away or even consider selling Hav or Telfer. It’s completely illogical. Both companies are gold miners. It’s what they do. NCM have spent hundreds of millions proving up and dug over 2km of access road. In which universe does that not result in an operational mine.
Even if you indulge in the sell fantasy, it will go straight to the market so any cheap deal is a complete nonsense as well.
Here’s hoping we get a good gain tomorrow and perhaps even test the 10p range again.
GGP seems to be defying the market again!!!
I do wonder if the average PI is wondering if the opportunity here is as good as we think it is. If the tide turns here and the SP makes a move I can see a strong upwards movement here. Maybe the DTM or resource upgrade will be the turning point.
I would certainly feel more confident we were in control of our own destiny of the company was double its MCAP.
Serious question. Is there any way GGP buying 70% Hav and 100% Telfer doesn’t lead to hideous dilution for LTH. I would appreciate an informed view on what other likely options could be on the table.
Thanks