Newmont and Telfer (with Havieron)

[Shinybits]

If you think 2024 will bring in 240koz, why should that rise in future years?

Newmont’s ’tier 1’ definition is a lot broader than just 500kOz a year, it also has a maximum defined AISC which Telfer cannot meet largely due to head grades.

As for the 240kOz in 2023/24 year, well both mills shut down on Christmas Eve and were down for 6 or 7 weeks, they have only just restarted ONE train a couple of weeks ago, which will probably go until some time in May, as there is a maximum amount of material able to be deposited into the quadrant of the TSF they are able to use, then it will be both trains off for the rest of the financial year. So train two is down for more than half the year, and train one will be down for a quarter of it, so as a benchmark 240 shouldn’t be too hard to improve on, that’s why it should rise in future years, in my humble opinion.

Within the confines of Telfer’s area also exists the world’s largest high grade known deposit of tungsten, a mineral required for production of armour piercing weaponry and currently 80% odd is mined and processed by China. It’s not too far fetched to expect the western world to be securing more geopolitically friendly supplies of a rare material required for military purposes and this hasn’t yet been touched. Another piece of the future puzzle?

[Rotherby]

While today we did not get confirmation that we are going to be the 100% owners of Havieron, we did get more information from the half year results

"On 22 February 2024, Newmont announced its intention to divest its interest in Havieron in calendar year 2024, as well as its 100% owned Telfer mining operations located 45km west from Havieron, where ore from Havieron is presently contemplated to be processed (subject to a positive feasibility, decision to mine and entry into a toll processing agreement). Greatland discovered the Havieron deposit and maintains its commitment to delivering Havieron's full potential for all stakeholders. Under the Havieron joint venture agreement, Greatland holds a right of last refusal in respect of a sale by Newmont of its joint venture interest in Havieron to a third party."

This confirms that we can buy the 70% subject to raising the cash, as all along the only reason that Newmont would get an exceptional offer was if someone wanted to put GGP under pressure, there is a lot of M&A activity in Oz at the moment so IMO there are not many that would want to substantially over value Havieron, as if we did not bite they are stuck over paying for an asset that still is not guaranteed to be a successful mine.

Can we raise the cash, I believe that Shaun has stated or at least inferred than we can, and it would most likely be by Bank Debt.

This paragraph seems to infer that we have to enter into a toll processing agreement, I was under the impression that this was part of the joint venture, and I had assumed (maybe wrongly) that who ever purchased Telfer would be committed to the terms of the JV, rethinking this if we own 100% there is no joint venture. Is there a cost to Newmont terminating the JV?

That brings me on to the Juri JV are Newmont pulling out of this, as they are manager and we are the minor partner again, again can they do this without penalty.

We could be playing this as a long game, let Newmont see what interest there is in Telfer and /or the Telfer package with its JV's of Havieron, and Juri. If no interest from outside then IMO this increases our bargaining position. As well as Greatland JV's Newmont have the Wilki JV with Antipa which needs a home unless again Newmont are going to write it off, From the Antipa web site it does not look as if any progress has been made since the middle of 2023, so maybe Antipa still own 100%.

We will see and alittle more may be revealed today.