Telfer Havieron combined AISC
Posted: Sun Sep 17, 2023 4:58 pm
In reference to Grant Samuel’s Telfer/Havieron combined valuation. Rick Rule states that the purpose of M&A activity is to save money by reducing staff and overhead costs.
New management (whoever that will be) will look at the headcount and efficiency of the operation. Certainly 1500 staff for what was a 22million ton per annum 2 train processing facility will not be needed for Havieron’s 3 million tons per annum.
As the Telfer open pit is exhausted and underground grades dip below 0.5 would they maintain or shut the Telfer side down completely? If they did, the blending with Havieron ore wouldn’t be needed. The AISC for processing Havieron ore alone could be reduced dramatically. McMahon employs hundreds at Telfer surface operations. I believe Ausdrill provide Telfer underground assays for targeting the highest of the now low grade material. All this could be negated.
Otto Richter group mining engineer and Simon Tyrrell chief operating officer (both ex NCM) are well placed to identify savings and implement change.
At the time SD appointed the guys I was scratching my head as to why, when we had no cash flow and NCM already had people that could do this?
Could it be feasible to only use Telfer for its processing capacity and shelve open pit and underground operations?
Possibly the $680 AISC could be reduced further?
Just a thought- I know nothing about mining.
New management (whoever that will be) will look at the headcount and efficiency of the operation. Certainly 1500 staff for what was a 22million ton per annum 2 train processing facility will not be needed for Havieron’s 3 million tons per annum.
As the Telfer open pit is exhausted and underground grades dip below 0.5 would they maintain or shut the Telfer side down completely? If they did, the blending with Havieron ore wouldn’t be needed. The AISC for processing Havieron ore alone could be reduced dramatically. McMahon employs hundreds at Telfer surface operations. I believe Ausdrill provide Telfer underground assays for targeting the highest of the now low grade material. All this could be negated.
Otto Richter group mining engineer and Simon Tyrrell chief operating officer (both ex NCM) are well placed to identify savings and implement change.
At the time SD appointed the guys I was scratching my head as to why, when we had no cash flow and NCM already had people that could do this?
Could it be feasible to only use Telfer for its processing capacity and shelve open pit and underground operations?
Possibly the $680 AISC could be reduced further?
Just a thought- I know nothing about mining.