The HaveTelf purchase timeline

[The Doors]

I’ve been thinking about all this from a reverse perspective which is ‘what if GGP had approached NEM unilaterally to but HaveTelf ?”

The point of this is to work out what would need to happen before a sale went through and ignoring all the extraneous stuff like NCM takeover, NEM multi-asset divestment plans, last right of refusal etc.

The outcome I hoped to reveal for myself was just what steps would be involved and how long it might take starting from the point in time when NEM announced their Sale of the non-core/non-Tier Uno assets.

There would need to be:-
- find the money to buy it
- Bring banks, major shareholders in with negotiations lined up and credible solutions ready (remember the mega finance guy only recently joined GGP)
- Set this up legally and for the markets
- Build a team to take the assets on
- Satisfy the authorities this is possible for a small operation like GGP (I’ll co e back to this as it is the one I feel is most relevant to the pace)
- Transferring employment rights
- Assuming legal liability for restoration of Telfer in time
- Due diligence across all these moving parts but especially Telfer as a megastructure and set of gold deposits
- Get NEM to sit around the table whilst they simultaneously sell first priority assets (North America is first priority)
- Sort out normal Hav and other operational works, I.e. BAU
- Seek assurances that Telfer will be fixed and get this legally watertight
- Work out how to value the Hav asset

The new CFO’s arrival was only recent and would come at a meaningful point.

The government assurances would be pretty complicated and testing and I suspect this is the area that GGP need to satisfy the authorities with immense and forensic scrutiny.

On that, a HaveTelf ownership vehicle may be the main focus. Build a structure (TopHatCo) with Wyloo/Twiggy/IIs/Banks/royalty cos) and show the govt that you are more than just GGP. Get them onside by throwing Barnaba/Gaines/Forrest names at them the. Back it up with a coherent plan to safely and securely move a national asset across to a newco.

If we were going full speed to do this from scratch in this hypothetical example with GGP knocking NEM’s door and asking to buy T+70 then a year would be very ambitious to conclude it. It might take a year to get to heads of terms agreement.

So with the divestment being announced last October (I think?) then the timing of Q4 / October for news would make sense to me. That would allow for all the remedial work and fixes to be done for Q4. And the DFS and DTM would be ready - remembering too that as part of this change of ownership we’d probably need to assure government about our capability with a clear agreement with the miners we selected. If that was Northern Star or Fortes he then you’re adding complexity and also additional layers to the JV which wou,d become a JVx2.

So realistically I see everything coming to a head I. Q4 of this case dar year and final sing-offs in Q1 25.

It’s complicated when you look at it this way round. At least with it being the other way round there are some economies of timing and shared shoulders to the wheel and goodwill.

And if we are in a competitive process the add a bit longer.
ATB

[Rotherby]

o Stage 4: If Newcrest completes and delivers, or incurs no less than US$20 million in expenditure toward the carrying out of, a Feasibility Study for a project on the Tenement Blocks (the "Stage 4 Commitment") within a period of 24 months from the date following satisfaction of the Stage 3 Commitment, Newcrest will earn an additional 10% Farm-in Interest (cumulative 70% Farm-in interest).

We talk about 70%, but as we do not have the FS the percentage is only 60%, I know GGP have allowed this but this opens up options.

Our Partners appear to be not complying with the agreements we have with them, and I would say stalling the project.

The points are as follows:-
Stalling the decline
Not issuing the Feasibility Study for a project on the Tenement Blocks (the "Stage 4 Commitment") within a period of 24 months.

These have reduced their expenditure on Havieron, these do seem to be a serious breach given their dominant position, unless I am wrong (and I could be) the effect on Greatland if significant in that we had the funding to complete our side of the Agreement and these delays are adding to our costs with no benefits.

Under these agreement there must be clauses that require the Project manager to act in the interest of all parties or a major could just stall a project until the Minor ran out of Cash.

I would like us to take over as manager and get the contribution from Newmont, or have the project at its current value, Ie No FS, Decline not complete, this seriously devalues the project.

Just thoughts

[droverman]

Mentioned this many times that NEM do not have 70% of Havieron as they have not presented the FS and DTM on LSE but no takers on this except you mate.
As mentioned above its quite possible that GGP approached NEM on T/H purchase a long time ago, hence our fantastic BOD, no reason for joining GGP except the possibility for big $ and prestige of starting a huge mining operation. Good for there CVs and bank balances later on. DM

[CK 1974]

Have you emailed Shaun with this very accurate sounding clause in the jv? Be interesting to hear his thoughts on this

[ManFromUruguay]

Morning all.
Not sure if its related but I recall GGP "bringing forward" one of the milestones for NEM because of how much progress had been made. Could it have been the 60 to 70% marker ?
There is surely no way Shaun would have been stating "our 30%" for the last year or two if this was in any doubt IMO
However I do agree it is worth asking the question for clarity
Thanks for raising such a valid point
Best
MFU

[Francis]

o Stage 4: If Newcrest completes and delivers, or incurs no less than US$20 million in expenditure toward the carrying out of, a Feasibility Study for a project on the Tenement Blocks (the "Stage 4 Commitment") within a period of 24 months from the date following satisfaction of the Stage 3 Commitment, Newcrest will earn an additional 10% Farm-in Interest (cumulative 70% Farm-in interest).

…

I think you’ve misread this @Rotherby.

It says that the 70% is earned EITHER;
- when the FS is completed and delivered OR
- when US$20m of expenditure has been incurred

The first condition hasn’t been met. The second condition has. Only one of the two conditions has to be met for the 70% to have been earned.

[Rotherby]

I am still not sure so I will ask he who knows as these statements contradict each other.

But from
https://polaris.brighterir.com/public/g ... ry/wkodj1x

28 October 2022

The loan is made up of both Facility A and Facility B. Facility B came into effect in October 2021, when the Stage 4 commitment was satisfied by Newcrest. Interest is calculated on the LIBOR rate plus a margin of 8% pa. Interest is calculated every 90 days. Refer to Note 19 for maturities of financial liabilities.

and As at 30 June 2022, Newcrest had met the Stage 4 expenditure requirement (US$65 million) resulting in an overall joint venture interest of 70% and 30% for Greatland.

[Francis]

There’s nothing contradictory. It’s perfectly clear. The expenditure requirement has been met so the additional 10% has been earned and the interests are 70/30, as SD has said many times and as per the text you’ve just shared.

[James]

We own 30%, the end. Can't imagine Shaun would miss something like this.

[CK 1974]

None of us know that for sure or if they’ve spent the $20 mill so as far as I’m concerned it won’t hurt to ask! Yes Shaun won’t have missed it but at the same time answering shareholders concerns takes 5 mins and seeing as he’s said sweet fa to us for a while I think we have a right to ask

[Francis]

None of us know that for sure or if they’ve spent the $20 mill so as far as I’m concerned it won’t hurt to ask! Yes Shaun won’t have missed it but at the same time answering shareholders concerns takes 5 mins and seeing as he’s said sweet fa to us for a while I think we have a right to ask

You can’t be serious! @Rotherby literally copied and pasted the following text from an RNS: “As at 30 June 2022, Newcrest had met the Stage 4 expenditure requirement (US$65 million) resulting in an overall joint venture interest of 70% and 30% for Greatland.”. How much clearer can it be?

And still you say “None of us know if they’ve spent the $20 mill”

[CK 1974]

Ahh didn’t read that post I must’ve skipped it, point I was making to James was we should be able to ask Shaun this kind of stuff but most emails get ignored now. Fair enough he’s busy but it would be good to know he gives a thought to shareholders and not just his insti mates he’s let in on the cheap!

[James]

Ahh didn’t read that post I must’ve skipped it, point I was making to James was we should be able to ask Shaun this kind of stuff but most emails get ignored now. Fair enough he’s busy but it would be good to know he gives a thought to shareholders and not just his insti mates he’s let in on the cheap!

If I were him, I'd also ignore any emails about the ownership structure. How clear does it need to be? 70/30. And now you're just making wild accusations by assuming Shaun only cares about the institutions.

[Redirons]

I agree entirely with your last post James - Shaun is one of the most communicative CEO’s out there even flying to London for TH’s just to update PI’s face to face - no grounds exist to disrespect him thus far imho!!

[Rotherby]

I think you’ve misread this @Rotherby.

It says that the 70% is earned EITHER;
- when the FS is completed and delivered OR
- when US$20m of expenditure has been incurred

The first condition hasn’t been met. The second condition has. Only one of the two conditions has to be met for the 70% to have been earned.

There was more to my post, I see in various places that we are due the FS, I now ask are we or can the major in a JV just stop there.

Can the Manager of the JV, just stop work in such a way as to bankrupt the minor?

Just getting frustrated by the lack of movement, but appreciate that getting these ducks in a line may be the hold up.

Just some Ducks not in any particular order or complete.

Telfer in good order
Agreement to buy
Funding for the agreement
Subsidiary agreements with any JV that are part of the sale
Subcontractor agreements so we can start with a running start
Tupe Australian style agreements.
First nation approvals
Statutory approvals

[CK 1974]

Yes rotherby but some people can only see what they want to see.
And Shaun is only a trustworthy ceo until he isn’t! I’ve seen plenty of ceos on these casinos that are loved one day then they fk everyone over the next. So I think I’ll reserve judgement until he actually delivers on all these promises. Can’t believe how trusting these sheeple are!

[Redirons]

Rather than being sheeple I just prefer not to disrespect someone who has done nothing to deserve it, just because you distrust everyone!! Why be a victim all your life CK?

[CK 1974]

Not a victim but you can’t trust someone 100% when they haven’t delivered anything (yet) even spoke to him at the th meeting stayed invested cos I believed him and that’s got me nowhere! So I’m sorry I don’t follow him like a sheep like everyone else but trust has to be earned and I haven’t seen that yet!
I’m still a believer in ggp, been here years and got no choice now since Shaun took over and I’ve watched my profits diminish! so don’t tell me to follow him blindly like you do as I’m not that naive

[Redirons]

CK - I didn’t tell you to follow him blindly - I suggested that disrespecting him when he has turned a house of cards into a Company jam packed with industry experts ready and able to negotiate with major players, is a feat not worthy of your generalised fears of always being a victim. Staying invested just because you’ve trapped yourself in, has nothing to do with what Shaun is trying to achieve within a hugely accelerated timeframe (compared to most mining projects) but I guess that is outside your realms of understanding so let’s just accuse the CEO of something he has not done (just because some CEO elsewhere (probably SXX) has lost you money). Typical reaction from someone who followed the crowd into SXX, got burnt and followed the crowd into GGP and now bricking it that the same will happen again. Who did you say the sheeple were??

[CK 1974]

Not that it matters red but I’ve never been invested in sxx and I bought ggp in 2013 then more when gh was banging on about Ernest Giles! so…following the herd? I think we can rule that out! I stayed invested because the sp looked good for another move up and Shaun seemed confident with everything going ahead, that didn’t happen, I haven’t disrespected him ffs I’ve just said facts about the his insti mates. As I said I’ve been pro ggp since before havieron but that doesn’t mean I have to trust him, I will when he proves himself to be the messiah you claim him to be