RE: Scally comments edited out???28 Jun 2020 14:38
schlemiel, I totally understand where you're coming from in your post, but, IMHO, I largely disagree. Greatland Gold is an exploration company and that's why I initially invested in them. I don't want them to just sit back on their laurels and, possibly, just rake in funds from Havieron. What does that say for their future?
IMHO, they should definitely be expanding their operations to drill elsewhere. and Scallywag is the obvious next target. Sure, there is risk there , but surely there is risk in any business that wants to push forward, rather than just sit back and burn cash!
As I've said for many months now, the most likely scenario going forward will be the planned Scallywag test drills, as GH indicated, but now more likely during Q3/Q4 this year (later than the planned Q1/Q2), after the COVID-19 lockdown. That should stil be under current project funding, with cash flow being adequate, as reported in the last financial results, until around October, but plus, also now, the addition of the warrants finance now available.
Further funding for extra drilling at Scally (based on positive test drill assay results, and which I also believe that GH would be in favour of, to add extra shareholder value) may well then be funded, as you state, by the possible divestment of the likes of Firetower and/or Warrentinna around, say, also, Q3/Q4 this year.
Based on all that, obviously again assay results based, and it's only a guesstimate, I'd expect GGP to then go for another farm in type agreement with Newcrest at Scallywag (most likely, and taking up their first right of refusal option), or, alternatively, the possibility of a new J/V with someone else (unlikely as Newcrest will wish to keep as much control as possible vis a vis Telfer), taking place towards the end of 2020/early 2021.
As always. just a personal view! :-)
GLA & DYOR
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