Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Chrisatbirdies
That is certainly a possible outcome, and could possibly be why SD keeps mentioning securing the backing of loans from financial institutions. i wonder whether the delayed MRE2 may cause ggp more challenges in securing finance this early in the game. again, just speculation but given the situation, lots of potential conspiracy theories!
bottom line is, in my opinion, that SD is a smart chap and working to get the best deal for ggp wither way.
GLA
Hi Dip
I don’t think there are any provisions for GGP delaying its valuation of the 5% if it is to go to independent review neither was this dependant upon the MRE2 being issued by a certain date.
SD has said that he has a team that understands the current and future value of havieron, but he also said the MRE2 is important to understand its value. Can both be true independently?
If it goes for independent review, without an updated mre, how does the independent Valuer determine the correct value? Who chooses the independent Valuer?
It would be prudent for the independent Valuer to demand the latest MRE in order to
Make a decision on which valuation is more appropriate.
Very interesting situation indeed
GLA
So assuming this goes into independent professional valuation, once the 5% value has been determined and the 30 days option given to ncm, will we at this time be privy to that information? At this stage it will no longer be a “negotiation” but the figure will be materially price sensitive would it not?
Starbright hi
I don’t expect at all to get updates on the back and forth of negotiations. But on the deadline date there will be a formal offer which will be ncm ‘s final position post negotiations. At this stage, whether this figure is accepted or not, is GGP not obliged to share this with the shareholders?
Are there any specific aim rules in such circumstances?
Cheers
Will SD issue an rns once the 5% offer is formally received and disclose our valuation as well? Especially if there is a greater than 10% difference! Will he be required to disclose figures rather than just state “we have received an offer and there is a greater than 10% difference and therefore it’s going to independent review”? That would again keep us in the dark for an extended period which won’t be much fun considering the lack of an update on the ore reserve from SB.
I feel figures even if not agreeable between the two parties are materially significant and should be released to shareholders as soon as they are available.
I wonder if SB is finding it hard to understand why he has to pay say $200m for 5% of havieron when the whole of GGP is currently sitting at $750m! If I were him, I would definitely be looking for a way to take the whole lot!
Maybe that article is a diversionary tactic….
Who knows?
GLA
All good (mostly) and yes there will be continued drilling as time progresses and the ore body grows no doubt each month, but if they are going to give us back dated results of up to a year every time, we the investors are continuously far far behind the curve. The MRE2 I think was essentially to give us an update covering most of 2021. Now if the MRE2 is pushed to the last quarter of 2022 and still only provides details of 2021, that will not be as much fun as for instance, adding the first half of 2022 to those figures as well.
Having the 5% issue is thankfully allowing us to receive hopefully some perspective without the mre2.
That’s the way I’ve understood it at least.
GLA
hi bamps
SB said that the 5% is not connected to the MRE2, from what i recall. but dont they need the MRE2 (and possibly even an 'MRE 2.5' to put a concise updated value to the 5%?
would appreciate your comments on this
thanks
The corporate world is Ofcourse more complex! I don’t believe it will get to another miner coming into the equation over the 70% as we stand currently, and following the words of SD a few days ago I think he stated that there was a good relationship between the two companies.
. But if there was an incredibly low ball offer it’s not inconceivable to think that it would attract other miners.
I stand firmly in the camp that expects a fair deal for the 5%, whether through third party involvement or not
GLA
i wonder whether SD has another miner on standby and ready to pull the trigger on taking the 70% off NCM if they valued the 5% unfairly low. Then we could simply tell them that 'we and our new partners are willing to buy you out at the same price you offered for the 5%'
where would that leave the telfer operation be then?
Value finder hi
Now that ncm did not report the full value of the ore reserve to December 21, a figure that mostbb can on here expected, and issued a report that even the best on here took ages to try to decipher, what would have preferred? Silence from SD?
For me that rns is brilliant under the circumstances!
GLA
For delivering an important rns at a critical time and for re iterating the value of our asset is huge and far from determined!
Whoever isn’t calmed by this rns, in my opinion, will never be happy investing in such type of exploration companies!
GLA