Newcrest Leftovers Don’t Appeal to Australia’s Top Gold Miners - Bloomberg

[CanisLycaon]

Australia’s soon-to-be top two gold miners say they’re not interested in buying two operations predicted to be put up for sale by Newmont Corp. after its $19 billion acquisition of Newcrest Mining Ltd.

Newmont is widely expected by sector executives to sell the two Newcrest-operated mines in Western Australia when the deal is completed later this year. Telfer is too mature and Havieron is too small for the US-listed giant, Daniel Morgan, an analyst with Sydney-based investment bank Barrenjoey, said in May.

Read More: Newmont Seals $19 Billion Newcrest Takeover in Top Gold Deal

Northern Star Resources Ltd., which will be Australia’s biggest domestic gold producer when Newcrest is absorbed into Newmont, won’t bid for those mines and will instead focus on a major expansion of existing operations, Managing Director Stuart Tonkin said in an interview at this week’s Diggers and Dealers conference in Western Australia.

“Anything that did get divested won’t necessarily meet Northern Star’s strategy,” he said, adding that Newmont was likely to retain any mines that his group would potentially be interested in.

Evolution Mining Ltd., which will be Australia’s second biggest gold miner, said it didn’t see the projects as attractive.

“We have a number of people who used to work at Newcrest who have had experience with some of these assets before, and generally their recollection of the experience wasn’t that positive,” Executive Chairman Jake Klein told media at the conference on Wednesday.

The operations may still find new homes. Greatland Gold Plc, Newcrest’s junior joint venture partner at Havieron, said on Monday it would bid for full ownership of the mine if Newmont puts it up for sale.

https://www.bloomberg.com/news/articles ... ify%20wall

https://uk.finance.yahoo.com/news/newcr ... 22555.html

[jecsggp]

The gold is there so I see this as positive. If there are fewer buyers interested the price paid will reflect it... 'supply and demand'.

J

Australia’s soon-to-be top two gold miners say they’re not interested in buying two operations predicted to be put up for sale by Newmont Corp. after its $19 billion acquisition of Newcrest Mining Ltd.

Newmont is widely expected by sector executives to sell the two Newcrest-operated mines in Western Australia when the deal is completed later this year. Telfer is too mature and Havieron is too small for the US-listed giant, Daniel Morgan, an analyst with Sydney-based investment bank Barrenjoey, said in May.

Read More: Newmont Seals $19 Billion Newcrest Takeover in Top Gold Deal

Northern Star Resources Ltd., which will be Australia’s biggest domestic gold producer when Newcrest is absorbed into Newmont, won’t bid for those mines and will instead focus on a major expansion of existing operations, Managing Director Stuart Tonkin said in an interview at this week’s Diggers and Dealers conference in Western Australia.

“Anything that did get divested won’t necessarily meet Northern Star’s strategy,” he said, adding that Newmont was likely to retain any mines that his group would potentially be interested in.

Evolution Mining Ltd., which will be Australia’s second biggest gold miner, said it didn’t see the projects as attractive.

“We have a number of people who used to work at Newcrest who have had experience with some of these assets before, and generally their recollection of the experience wasn’t that positive,” Executive Chairman Jake Klein told media at the conference on Wednesday.

The operations may still find new homes. Greatland Gold Plc, Newcrest’s junior joint venture partner at Havieron, said on Monday it would bid for full ownership of the mine if Newmont puts it up for sale.

https://www.bloomberg.com/news/articles ... ify%20wall

https://uk.finance.yahoo.com/news/newcr ... 22555.html

[Rotherby]

Whatever Newmont decide we are in the right position.

If they want to hold on to Telfer and Havieron, then we go mining.

Telfer is a liability unless there is ore to process, and even then has a reinstatement cost attached if for sale, that cost will increase with time.

If they want to dispose, we have the last refusal on Havieron, so GGP can buy the 70% back, we know the value of the 70% better than anyone, if anyone is willing to overpay then 'let them', but I would think that knowing GGP's position no one will over bid for Havieron. We do not have to buy Telfer.

Telfer has a negative value without Havieron, so to GGP we have Havieron as a plus, and Telfer as a negative, they have to make in interesting enough for us to take Telfer with its liabilities off there hands

However if Telfer ends up different ownership to Havieron what stops GGP using Telfer for the first 8 years it takes to mine the crescent, and then developing their own facility 'on site' for the remainder of the life Havieron.

I am sure Shaun and the team have all these and more options costed out to get the best deal they can which ever way the 'toast' lands.