I have it from a good source and Oz based mining friend: There will be No Newmont spin out of Telfer.
You know what that means/implies..? YUP - no ‘big’ cash raise.
This week was / is just a hard nosed smash short and grab (off PIs) all prior to ASX listing - executed over the past week by the BB Boys - Yup we all they know who they are. Hold tight and show them the middle finger...
But you won't believe some of this... here are the best snippets..
Unsurprisingly... word is Newmont TOTALY loves the data surrounding Havieron. Of Course, Why wouldn't they? - We all know it's massive, and we also know Newcrest calculated it was worth turning nasty with GGP over the 5% etc etc (all in an attempt to either further dilute or bankrupt us).
That's not to mention the new 100% validating comments ( which just landed today ) from independent 'investor to the billionaires' - Warren Gilman https://www.youtube.com/watch?v=5ApPF55jj-w
In fact: That whole Warren Gilman interview was quite enlightening. Funding by convertible debentures - interesting stuff AND he never missed a beat when emphatically rating Greatland as 'undervalued' (last 5 minutes).
There's a reason Jupiter, Tribecca and Wyloo piled in en-mass into GGP's share register at 8.2p.
... Havieron, it seems, is regarded as potentially a comparable project to Newmont's massive Tier 1 (5g/t underground) Tanama Gold mine in the NT (where a recently added a haul shaft will expand production and extended mine life to 2040) See https://www.mining-technology.com/proje ... australia/
To get your head around the similarities consider the 1400M depth -very close compared to our Eastern Breccia.
IMO This is how it's going to play out:
My source suggested there is absolutely NO [effing] way - and I mean totally ZERO chance - that Newmont is planning to spin out Telfer/Havieron fast.. Becuase i kid you not, they are saying Havieron will produce for 'Generations'. And much of the processing Capital has been spent. We're in a toll treating situation.
(I had a personal debate as what 'Generations' implies - either 2x15 years or 2x25 years - but I take it as at least 40 years and at least as big as Telfer.
So what does this mean ? Well obviously it may appear to mean no BIG dilutive raise to buy out NCM's 70% of Hav and/or Telfer. It means Havieron is a 'goer' as is... And no complications raising the capital required to develop a big project (a la SXX) Again All My personal preference - I was about to get a little upset if Newmont chose to 'pass' on Hav TBF)
It also presumably means GGP instantly becomes very firmly a potential Newmont Takeover Target.
In principle, with our $220m debt and cashed up balance sheet we are smoothly set up for GGPS 30% share of the development cost no problem. And, with the decline already in place, we should be digging pay dirt next year: Essentially - GGP has the cash to deliver the enhanced 3mt project.
It was therefore the view of my source that our resident short 100% knows all this.
As a consequence, they also know they have very little time to short-smash and grab and accumulate as much stock as possible - prior to the upcoming ASX listing. A last hurra if you like, knowing GGP automatically becomes a fully funded Newmont Take over Target on delivery of a DFS.
So the shorts have set out to publish the message that GGPs is either trash or screwed etc and a 'confetti day' will raise big time to his mates etc etc .. at EVERY opportunity (via every channel possible), whilst simultaneously shorting the stock to shake out weak PIs. Obviously it's a ploy. But moving price is not that difficult on low volume - look at what GDXJ did 16p to 27p buying 240m - imagine what the ASX pension funds will do...?
These Multi ID trolls are well know to us.. going after YOU the largest cohort of PIs who own 75% of GGP ... our resident short 'The BB Boys' - we/they know who they are - are working across LSE and AFDVN and twitter systematically 'discredit attacking' Bamps, Paddy and me. ( I wonder why ?)
And then there's the 60-65m Ortex on loan, outstanding, to close - albeit we're not sure about this...
Possibly Jupiter's Asset Managmemt's recent 102million share slow burn purchase caught them 'off guard' and they simply had to deploy the 'kitchen sink' to get price where they wanted for some very large short closing trades, in the near future? Maybe just maybe there won't be a raise at all and they will have no easy exit whatsoever... ?
Make no mistake... There was a massive battle today. And a hell of a lot of volume, - almost 20m - from literally nowhere. Expect a roller coaster, going forward... today was probably only the beginning.
But think about it - logic dictates and GGP's own Annual Full year Report (March 23) states we had US$76m in the Bank as of Jan 23. We are certainly not 'cash strapped'. Shaun however is clearly between a rock and hard place - he can neither confirm nor deny any possible raise - especially if talks have occurred - and why not? - considering the company's finance options pre cash generation is obviously prudent.. And the shorts will know they can use that one tactic to bash him with... hence the 'news leaks'... But IMO he's a pretty straight bat -as Ned at Jupiter must also have decided - so taking Shaun at his word - any raise would be ONLY be to secure a 2nd asset or to 100% secure or protect us from some extended mass development of Havieron (given we only have debt funding in place..for 2-3mt)
But equally whose to say Newmont's view of a DFS isn't for 8-9mt with a huge Haul shaft etc.? This is not gossip - it was of course mentioned in GGPs recent sustainability report.
The ASX listing and prospectus are fast approaching. I'm guessing here, but, the potential is for these documents to likely contain some real humdingers - the sort of which meant Borelli couldn't execute his options. The sort that move markets.. Presumably one could even speculate on a 5-6mt Haul shaft, the Nickel content and/or speculate on some very large Production tonnages, who knows - even bulk underground potential?
Anyway middle finger to the BB Boys - I'm topping up when I can...
And remember, 'Price is set at the Margin'. (So a few 1000 sellers of houses control the entire market for literally millions of home owners)
What did we used to say ...?
You can't un-find the gold ( LSE )
10 x the grades of Telfer and the best grades of the region (Sandeep Bizwas)
Sit on those hands (Paddy Gall)
If you take into consideration grade zonation there's roughly 20moz (Shaun Day)
Don't Nickel and Dime me... Hydrogen
And my favourite.... 'don't forget the copper' (Bamps) b/c frankly it's a game changer
Basically if you have a long life copper-gold asset, then you're in Nirvana - (Pierre Lassonde).
Hold. For. Gold.
