Newmont Divestment
Posted: Sun May 05, 2024 9:43 am
Having read and looked at this I now have a list of the parts that make up the Telfer/Havieron package (I think, I have numbered them in the priority to Greatland, it I have missed any bits please add)
1. The mine development JV at Havieron, the only one where real money has been spent (in terms of these companies’ budgets).
1a. The intellectual properties that I understand are Patented by Newcrest/Newmont so we can carry out the mine plan as designed without any problems; intellectual properties do not always transfer in these situations.
1b. The right to use Tailings from Telfer for paste as we develop Havieron. (I think I have read this is part of the Havieron plan, correct me if I am wrong)
2. Telfer infrastructure (Airfield, Power plant village etc, I doubt WA would be happy to see another set of infrastructure so close the Telfer)
3. Telfer Plant (Nice to have to process ore from Havieron, but comes longer term with extra costs, A short term agreement may be advantageous.)
4. JV with Greatland Juri
JV with Antipa, Wilki.
Telfer Underground Mine and Telfer Surface Mine (others can estimate the life these has as of now but they appear very limited)
Telfer reinstatement (I am sure this can be broken down more)
Tenements attached to Telfer (I assume Newcrest carried out exploration on these and held on to them as they did not want anyone in their backyard)
What we do know
Newmont will want to remove all responsibility for Telfer (The costs attached to reinstatement are substantial and WA would want a water tight agreement, with Newmont still having the final responsibility, so Newmont must make it very profitable to take on this responsibility, so they pay all costs and more)
Greatland can chose to buy the 70% at the best price that Newmont can achieve. (I am not sure in this situation we have the right to the intellectual property included in the mining plan)
The other parts to this puzzle are all invisible at present being:-
The final price Newmont will accept, there are many negatives and a few positives, even with the DFS, and even a decision to mine, Newmont cannot now make that decision, it would be GGP’s decision or our new partners, we still have a non-producing investment, with considerable capital requirement to produce ore.
Greatland are to succeed need funding, Shaun Day has stated on more than one occasion, the existing debt agreement would proportionally be over 700 mill A$, Shaun has already shown an ability to navigate this type of situation.
1. The mine development JV at Havieron, the only one where real money has been spent (in terms of these companies’ budgets).
1a. The intellectual properties that I understand are Patented by Newcrest/Newmont so we can carry out the mine plan as designed without any problems; intellectual properties do not always transfer in these situations.
1b. The right to use Tailings from Telfer for paste as we develop Havieron. (I think I have read this is part of the Havieron plan, correct me if I am wrong)
2. Telfer infrastructure (Airfield, Power plant village etc, I doubt WA would be happy to see another set of infrastructure so close the Telfer)
3. Telfer Plant (Nice to have to process ore from Havieron, but comes longer term with extra costs, A short term agreement may be advantageous.)
4. JV with Greatland Juri
JV with Antipa, Wilki.
Telfer Underground Mine and Telfer Surface Mine (others can estimate the life these has as of now but they appear very limited)
Telfer reinstatement (I am sure this can be broken down more)
Tenements attached to Telfer (I assume Newcrest carried out exploration on these and held on to them as they did not want anyone in their backyard)
What we do know
Newmont will want to remove all responsibility for Telfer (The costs attached to reinstatement are substantial and WA would want a water tight agreement, with Newmont still having the final responsibility, so Newmont must make it very profitable to take on this responsibility, so they pay all costs and more)
Greatland can chose to buy the 70% at the best price that Newmont can achieve. (I am not sure in this situation we have the right to the intellectual property included in the mining plan)
The other parts to this puzzle are all invisible at present being:-
The final price Newmont will accept, there are many negatives and a few positives, even with the DFS, and even a decision to mine, Newmont cannot now make that decision, it would be GGP’s decision or our new partners, we still have a non-producing investment, with considerable capital requirement to produce ore.
Greatland are to succeed need funding, Shaun Day has stated on more than one occasion, the existing debt agreement would proportionally be over 700 mill A$, Shaun has already shown an ability to navigate this type of situation.