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It seems that the 25% covers areas as yet mostly unexplored. GGP holds onto Scally and others currently being evaluated with results due shortly, all with rights of first refusal to Newcrest. Havieron future is now fixed and the facility of £50M covers all associated expenditure without independent bank funding or share issue/dilution.
All sounds like good business to me but does suggest Gervaise has one eye on eventually selling the company or it’s stake in the JV. All of our eggs appear to be in the Newcrest basket.
Be interesting to see how the market reacts and what GGP has to say about the deal.
Spent the day enjoying OMI and GGP and was more than a little surprised to see PAT overtake both! Good day for the miners and it shows how little interest is required in Panthera to shift the SP.
Have a good weekend all.
ST - I would second that thought to check out PAT for anyone looking to take a calculated gamble. There board has skilfully partnered with local experts to reduce their costs and are sat on at least 8 potential goldmines including Burkhia in India which is expect to be a Tier 1 operation.
Anyone looking for a get rich quick explorer stock needs to look further down the food chain. Find a company claiming to be in the verge of a 5m oz gold discovery worth less than £50m. My current favourites are PAT and OMI. Please DYOR and don’t use it unless you can afford to lose it.
I’ll take a 100x share price rise if it’s offered. I like the way the new CEO is playing his cards close to his chest. I saw a recent interview and what prompted me to invest was his experience in sorting politics and legal matters in places like India and Africa.
I am pleased he is not posting all over Twitter. One big RNS would do.
Fingers crossed.
Does anyone have a view on next steps if the court ruling is in PAT’s favour. Clearly a £9M market cap explorer having a 6m oz confirmed licence should liven up the SP in the short term but I would be interested in how we move towards getting the thing mined?
Most certainly down. This drop has been forecast with $1835 cited due to the delay in further US quantitative easing measures. Nearly all analysts were pointing to medium term growth north of $2000 dollars an ounce. Am hoping the upturn comes in the next few weeks but may be next year now...
NED, further news flow would be welcome for sure.
James, Ethio, appreciate your thoughts on comparable sales. Let’s hope EUA blows the doors off with an RNS drops.
Ethio, you may well be right and I very much hope so.
If you could highlight some of these examples of £800M companies tripling in value on release of a FSP I would be pleased to hear about them.
Please accept the subtext here. I would pass out with joy if my holding quadrupled this week with the much awaited RNS dropping. I just don’t think it will. Hope I wrong.
Good luck all.
James. I do appreciate your point and I accept the sale price will be a % of the companies resources value (aandi suggests $38Bn proven). It a fair way to assess a sale price and draw comparison to other FSP.
My point relates to events so far as an indication of future sale price. The market says value today is £800M. If the market thought a sale is likely, and as many on here are stating, the share price will be £1 plus then I would expect a higher current SP.
Hi James - my views are simply based on what I believe based on the events to date. I believe that bidding parties will have had access to data and have employed experts to assess future value. On that basis any sale price is possible as joe public has no way of assessing or knowing what’s available.
One final observation. EUA were approached by several parties in 2019. The companies value at that time was much lower than today. Would anyone have been offering £5 Bn for a company valued at less than £200M?
I hope for all our sakes the FSP process has provided bidders with data supporting £100M of resources. All our dreams may then come true.
Good luck all.
Speedy, your value of 15% at £2k/oz suggest in ground value is £300 per oz. I would have said fair value is more like £1200 per oz when you consider Telfer infrastructure is already there. This is why the brokers have put risk adjusted figures out on 5m oz at our current share price.
Your point about what Newcrest are prepared to pay is fair. But if NC think an offer of £900M will buy 25% of Havieron if gold is at £2k per oz without another party making an offer seems unlikely.
I agree with Paddy that the big returns will be of GGP become a silent partner to Newcrest. We all know from experience that 10m oz at FS will double or triple over the life of the mine and it is easy to see annual dividends of 5p per share value ncenon full production.
I see no downsides to holding GGP at 23.5p. Surely we will see some positive momentum into the new year.
I see it the same way TheSharperCarper.
Let’s assume the BOD were in the middle of a £1 plus sale. Why issue the Speeding ticket in the way that they did? Why not simply say the BOD note the recent share price movement and acknowledges the movement as linked to the FSP. If a speeding ticket was required for a FSP vale of £1 why issue it at 38p. Just doesn’t make sense. I hope I am wrong but 40-50p looks like the number to me.
Good luck all.
In the context of GGP my exit strategy has had three triggers. The first sale was to achieve a free carry at 24.5p shortly after the GDXJ fund bought. It just felt like the right time to make that call. My next major sell is not price linked but event linked - the MRE and post exploration results. I think that represents the major % rise given my entry point a year ago.
I will then be left with around 25-40% of my current holding and I like many here will retain some flexibility on exit points and look at whether other emerging good stocks may represent a better return probability.
GLA