Question Havieron and the Telfer

[Rotherby]

There is so much going on in the background (i hope) and this brings with it times of uncertainty.

Thinking of only Havieron I have some questions and my considered answers, if I think I have one, as always just my thoughts in order to find out more by having others opinions.

We have a joint venture can our joint venture partner hold the works up due to their intention to sell?

I do not think so provided GGP can fund the 30% of the ongoing works, to halt or slow down the planned work for other than operation reasons agreed with GGP would be breach of contract.

So I assume work will continue as planned.

We are nearing the point where the OFFICAL decision to mine will (all being well) be made.

Zoros on the road map, (Thanks) has FS and decision to mine as the middle of this year and the completion of the decline as before the end of this year.

In order to carry on past the existing approvals we need the legal permissions to allow us to mine, and I know we PI's do not want anymore delays. this leads me to these questions that I cannot even think of the possibilities.

Who applies for these permits? I assume the manager of the 'project'
What permits are required?
How long do they take to obtain?
Are they in process?

I am sure someone can help provide answers to these questions and a little more clarity on the way forward for Havieron.

Now Telfer.

I assume the GGP organisation is leaner than with Newmont and previously Newcrest, hence less overhead, so should we become owners and operators of Telfer, considering it on its own.

Can Telfer be operated at a profit?
How long before any reinstatement cost need to be paid?
Will reinstatement in say the next three years make Telfer unprofitable?

And now with Havieron

Can Telfer profit fund itself and Havieron development until Havieron's ore can come on line?

Please can we have answers to other questions that I have not considered to help us have clarity as to the events that surrounds Havieron.

[Redirons]

Hi Rotherby - try sending your questions in an email to GGP and/or Shaun?
Good questions!!

[Shinybits]

To be brutally honest, nothing appears to be happening just now with Haveiron. Sound of crickets.

I’d be amazed if anything happened there until a new player is in the game.

I think from memory last financial year Telfer made a profit of about $180M if I’m not mistaken, after also financing all its own exploration projects, no handouts from Newcrest.

Telfer doesn’t have asbestos issues. Can the same be said for other deposits nearby?

[Rotherby]

Something Bamps posted on LSE gets me thinking of other way to cut up the Newcrest Assets.

Owning both Telfer and Havieron will have an effect on the AISC, really increasing the Cost hence decreasing the profit per Oz,
I would have thought that as we were tolling the processing of the ore that the cost of the tolling would be in the AISC and therefor no change, as we were down to pay cost plus, that being cost of the plant.

We do want 100% of Havieron, and we want a processing plant, we also need the Telfer infrastructure.

So could the deal which I hope with the 'deadly silence' is being discussed by the parties, plant at Telfer and the infrastructure, the 70%, and agreement to handle the clean up on a cost + basis.

I am sure our BODs are offering many suggestions as are Newmont.

The sooner this silence ends the better, Just my ramblings as always, happy for other to put in their thoughts

[Lennie]

Can Telfer be operated at a profit?

Yes it is already and with current gold prices definitely yes !

How long before any reinstatement cost need to be paid?

At the end of mine life .. so not for a long time !

Will reinstatement in say the next three years make Telfer unprofitable?

No ..see above !

[Rotherby]

If as is being posted elsewhere there is a Tailing issue at Havieron then this is a good reason not to have the mine and to have a cost plus agreement to do the reinstatement for Newmont.

Or

An agreement that protects us as the purchaser of Telfer against these type of issues, that are unknow at the time the deal is struck.

Lets hope the BOD can protect us from downsides and increase the upsides as we go through the period of silence

[Redirons]

Hi Rotherby - I would have thought basic principles apply to any type of property purchase, that full surveys are conducted so that any major future problems are identified before purchase and/or caveats are applied. I think our BoD are experienced enough to avoid buying a “money pit” out of sheer naivety/ignorance. These finer details are hopefully being ironed out as we post. VGLA

[Rotherby]

When looking around I have found this (Rincon Resources Limited) showing the Newmont tenements in the Patterson, I dont think I had seen this before in this form.

It also shows the holdings we have with Rio

[Rotherby]

Be nice to start 3rd quarter with a few RNS's

1st, RNS to start with the restart of decline,
2nd RNS with terms of deal and confirmation fully funded
3rd next RNS saying one of the other areas has something worth extra effort out in the Patterson or EG.
4 July RNS no4 ASX listing back on, and as quick as possible.
5th DFS and decision to mine.
Hope I am not just dreaming.

[ManFromUruguay]

Quite right Rotherby. Given the majority of your points are in the GGP official catalysts there is absolutely no reason these should not be delivered and in short order

TBH a bit disappointed that the decline hasn't restarted as it is 8 months since the " temporary pause" was announced. That's 8 months and counting. Remind me how long were the pauses for Aquifer 1 and Aquifer 2 ?


Best
MFU

[Spondy]

@MFU

I wonder ... Who would want to buy a depleted mine and a development project with a water problem?

In a couple of RNSs time we might hear that the numbers can work for Telfer, the LCA is depressurised, the decline continues and we just happen to have had our offer for the lot accepted.

[jecsggp]

Maybe the closer the decline gets to the ore the higher the price for buying the mine.

J

Be nice to start 3rd quarter with a few RNS's

1st, RNS to start with the restart of decline,
2nd RNS with terms of deal and confirmation fully funded
3rd next RNS saying one of the other areas has something worth extra effort out in the Patterson or EG.
4 July RNS no4 ASX listing back on, and as quick as possible.
5th DFS and decision to mine.
Hope I am not just dreaming.

[Rotherby]

No 1 and 2 were nearer the surface and the flows I would assume were less, but the delay seems exceeding long. Let us just hope that this is Newmont not spending money.

Under the JV they have to produced the FS, this could be the point where the negotiations for Telfer/Havieron crystallise, and while the FS may be complete and with Greatland for checking, until Telfer is sale ready there can be no deal.

Frustrating but if things are moving in the background as I think they are then happy to wait for Newmont to get there ducks in a line, even with the FS, they are selling a redundant Mine mill and infrastructure, with a hole in the ground, not a mine, but with a possibility of becoming a mine, in both cases they are selling risks.

Anyone taking on risks, need a very attractive price.

Quite right Rotherby. Given the majority of your points are in the GGP official catalysts there is absolutely no reason these should not be delivered and in short order

TBH a bit disappointed that the decline hasn't restarted as it is 8 months since the " temporary pause" was announced. That's 8 months and counting. Remind me how long were the pauses for Aquifer 1 and Aquifer 2 ?


Best
MFU