OK, I'll throw my hat into the ring!13 May 2020 10:14
I can best be described as a lurker, having watched this BB with interest. Lots of very interesting information, but lots more wild speculation! I have done my own research outside of this enclave and do have a reasonably high holding. Sadly not a LTH, having come late to the table.
I tend to discount all the ‘fag packet’ calculations as well as all the buy out now/next year speculation. We simply do not have enough up to date information to come up with anything reliable. I, as with all my investments, take a long term view and put my faith in our BOD (having looked carefully at the who/why/when and the company aims before investing).
I have to say, GH has played a blinder! I have every confidence that our BOD will look at any and all approaches and will recommend in the best interests of true shareholders. Look at the big picture, and it is big!
With Havieron we have a, very likely, tier 1 discovery on our hands. Not only that, we have Jv with the only company that has the infrastructure and ability to progress to mining this in the immediate area. They seem to have a serious ‘hard on’ over this resource as it will feed the Telfer plant with high grade ore, reduce Telfer’s ASIC substantially and will provide great benefit to their bottom line. They don’t need to buy out GGP or the remaining Hav 25/30%, but may like to. It will be difficult for them to put a value on this (that can be sold to their shareholders on return on capital basis) that will work for both sides. To be acceptable there would have to be some kind of future earn out (future royalty?) to cater for any undervaluation and future expansion (are there more areas like the SW patch that may or may not be there?). This is the perfect position for a prospector to be in!
Add to that Scallywag. With an expectation (may or may not) that this is similar mineralisation, but bigger than Hav, this is the logical next ground to prove. If this does come good, we have another resource, possibly bigger, and we already have a good working relationship with NCM (Telfer does look like it has the capacity to process both resources). Look at Scally again – the bottom section is in Rio’s area. So we have a potentially larger resource that can be developed relatively quickly and cheaply, but with potential interest from another major mining company!
All this in an evironment where the Coronavirus has done severe damage to the world economies with fiscal rules being broken daily to try and contain the financial fall out. The value of gold can only increase (to what extent is anyone’s guess), which is why there is much institutional interest in gold and mining stocks at the moment. The next three years or so will be a wild ride!
And then there is Golliath, Black hills, etc….
To GH and the BOD, I take my hat off to you, you have put GGP slap bang in the middle of a perfect storm. I am holding on for the full ride.
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