Telfer Grade U/G is 2g+

[Hydrogen]

As you can see from the Newcrest annual reports 2023 : Telfer Underground grade is 1.8g/t plus 0.46Cu which equates to about 2.2G/t Equivalent

So Telfer Underground is a highly profitable mine, and has lower overall mining cost than the West dome.

The West Dome is weaker and more variable 0.7-0.9g equivalent: The open pit is suffering from low grade however the truth is that in an increased gold price environment provide high torque to high cost deposits. Telfer's Hedging may be problem though.

Think Bamps has made a mistake here:

And this latest ASIC document form Newmont's most recent quarterly puts the AISC per Oz at Telfer at $1988 (not $2500) - however this period covers the recent shut down- Unless Bamps means AUD? But Newcrest didn't use AUD in their documents and Newmont certainly don't.

Once these issue are resolved Telfer underground is a good producer.

[zoros]

So Telfer is a "good producer" and Hav is expected to push out 300Koz_/yr......ergo - NEM wants shot of it? Hmmm?
They should have talked to you first methinks.
Z

[wildbill99]

I may have dreamt it - but I could have sworn that Shaun said in an interview that if Greatland were to acquire Telfer that they'd be able to reduce the AISC because they wouldn't have the fixed costs associated with a massive global corporation.

Zoros... would that not make it unattractive for NEM and attractive for GGP?

[Hydrogen]

Zoros could it be as simple as it doesn’t fit.. even if close it’s not quite right for them given they commit let’s to consolidation of their portfolio.

[Hydrogen]

I've been thinking about this further... And on reflection I think the decisions to sell Telfer may well have been a U Turn.

I just don't think Newmont wanted to be hamstrung by a 30% JV partner - who would suck 30% of the profits but be carried for 70% of the construction risk - but that critically had the permeative right over the main prize - Havieron's deep but huge mineral endowment.

Had Newmont proceeded to build Havieron, and enter a full 30% operational JV with Greatland I think they would have never been able cleanly extract themselves or sell it (for a fair price) because GGP could always, at any point , leverage Havieron away from Telfer, leaving them in the Poop.

Block cave potential or not - Presumably no matter how amazing or otherwise this complicated, inherited outcome was just too laden with risk for Newmont

Better to make a clean break now let GGP get on with it - back them to success - and retain a decent stake in the company - without the risk of future transactional friction.

If they want a clean break then they can now sell their stake at any point - (which has already more or less doubled in value).