RE: Panorama10 Apr 2022 12:23
@ Strudel, this is where I see we now have a long term opportunity.
The normal model is for lots of small exploration companies to scratch around in the dirt trying to find something. The many hands principle, as it were. Some find something, most eventually fall by the wayside. The big mining companies watch and wait, then come up with the funding to prove up the more promising finds. This gains them some 75% of the find at minimal cost through a JV. To employ enough teams themselves will be too expensive, better to let the speculators raise the cash and pounce when it makes sense.
So now GGP are in an interesting position. We found HAV. We found a (potential) tier 1 deposit. We have JV'd with the company needing to feed a hungry processing machine. Our JV partner is keen to get ore out of the ground in record time (and is putting the investment needed to do this). The shape of the deposit lends itself to a highly efficient, low cost, mine. The find is much bigger than anyone expected and will produce (for our 25%) a very healthy income. We are at the beginning of a commodities bull market (especially copper and battery minerals). We are sitting on a nice pile of land mostly all prospective with potential.
So we can gently and affordably work through our own prospects using our own cashflow to see what turns up. We can also step up a gear and play in the big boy's pool! We can potentially step up to the plate and JV with one or more promising finds and pick up the lion's share of any resultant mine.
This is how I see the totally unique benefit that HAV represents. It is far more of a game changer for us than most understand.
I'll be adding for at least the next 5 years.....
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