Hells Bells - Degrey Mining: 30-40% total dilution ahead (from yesterday)

[Hydrogen]

I just wanted to build on a post from Nitram re Degrey Mining in Telegram :

" To sum up what a great position we are with Havieron, I have just browsed through the overnight Funding Presentation from De Grey re - Hemi. Highlights:

$150M (Aus) riased just to get them to DFS (10% share dilution).
$985M (Aus) additional Capital Costs for Construction (appears to be currently unfunded)
Gold production not expected until Mid 2025 at the earliest

https://hotcopper.com.au/threads/ann-de ... n.7001332/

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So in principle if you 'go big' and go it alone, like Degrey, there's some seriously sobering dilution numbers : $150m was 10% dilution ... say they need to raise 40% of that $950m, via equity, that's circa $400m Auz in unfunded cash requirements, roughly, to build their mine...

Now TBF they do own 100% but the risks of them actually delivering this are much greater than GGP.

JUST STOP and Think about that level of dilution - $150m achieved by 10% dilution, last night - then 2.6x that number equates to 26-30% further dilution, assuming they can even get it across the line efficiently.

IMO That would equate to 30-40% total dilution (probably closer to 40%) to ALL holders from yesterday's SP ... assuming they have the clout to actually get it across the line , in a timely risk free manner. PLUS ALL THE OUTSTANDING PERMITTING REQUIREMENTS.

And that assumes the banks will step in and Debt debt fund 60% of their project... which they may not, as it's probably more risky than Havieron. GGP's was a brownfield NCM development with very low construction risk.

Brilliant Info like this sets GGP apart from the field. Not only are our production cost metrics exceptional, but the fact we are fully funded and fully diluted, and already building our mine today, proves we are THE exceptional development prospect in western Australia.

And then we have the bulk optionality ahead...

Further once in production of Degrey's first open pit, the waste /strip ratios going forward are very high. This is because they have at least 5 open pits to build due to unlock their 5moz reserve at 1.4g/t to the spread out nature of their deposit... across from memory 50km2 or similar

Further, they have no reserve either just a PFS, it's all just resource. So no guarantees about grade yet, recovery rates conversion factors etc etc.

At GGP the same infrastructure footprint serves everything. No wonder NCM wanted to get us cheap. Cant wait to hear how that 'dinner in Melbourne' goes with Shuan and Sandeep ... lol

[Acechaser]

Sounds like a good short prospect then.

[zoros]

So if GGP go from 4.2Bn shares to 5.5Bn shares (Sprott research paper) after all the consolidated options, placings and cash injections etc etc; that means for GGP to meet its debt obligations, then it, too will have been diluted by atleast 30% - no?
Z

[Mad Mag]

I think perhaps Hydro may realise this ref our dilution, his point is more aimed at the fact that we are now virtually risk free i.e existing infrastructure in place, the expertise of Australia's largest mining company at hand and fully funded to production. Oh and 'a beautiful shaped orebody' with little waste and exceptional recovery rates.

[speedymeadie]

Hi All. 4.2billion shares and go home with our tails between our legs or 5.5billion shares and a 30% share in a soon to be producing gold mine. i will take the 30% dilution any day. ATB Speedy

[speedymeadie]

Hi All. 4.2billion shares and go home with our tails between our legs or 5.5billion shares and a 30% share in a soon to be producing gold mine. i will take the 30% dilution any day. ATB Speedy