Every indication GGP will now be going to mine Haverion. Wyloo will scare off any potential suitors.
Some may not be happy with the amount of dilution that’s happened recently through both the placing along with the new director warrants, Wyloo strategic placing and potentially their warrants.
However you have to consider just how cashed up GGP are now… the debt funding from 3 tier 1 banks covers the entire capex burden to take Havieron into an operational mine (as well as covering the NCM loan).
Then GGP have at least £50m in the bank along with warrants potentially giving them another £50m in total (assuming they are passed by shareholders).
Imo Shaun Day is building a war chest so that he can expand GGP through farm outs with other junior (where GGP takes the big boy role this time) along with potentially M&A.
He’s done all of this before at Northern Star (as their CFO) and he’s mentioned before how GGPs launch asset (Havieron) is much better than what Northern Star started with.
I wouldn’t be surprised to see some further activity in the following months from Shaun and the new board.
You don’t add ex Fortescue ($50bn company) directors and deputy chairs for the Board if you were content with simply sitting back and watching Havieron deliver year after year and that be it.
Very excited to see where this goes - in 5 years time I’d like to think GGP will be a mid cap miner worth at least a couple billion pounds…
Good news - another step forward.
All resolutions overwhelmingly passed.
Havieron Exploration and Development Update
New high grade mineralised intercepts identified in Northern Breccia and between the South East Crescent and the Eastern Breccia increasing the potential for these two zones to link
Hope the sp stays low so I can pick up a few every month for the forseeable
Worth mentioning that they’ve extended/delayed the deadline for the FS to be released - was meant to be this quarter (they haven’t specified when it will be released).
They’re most likely expecting inflation and cost uncertainty to ease in the next few months and also gives them more time to prove up a bigger resource which means a bigger NPV.
The critical path to production is the decline (now 916m in out of 2400m with the rate continually increasing). Therefore the delay in releasing the FS should not impact the date of first production.
I must admit on this particular share to be failing abysmally at rule no.1 of investing - understand the business you’re investing in.
I’ve tried to read all the reports, feasability studies etc., and most of the info (like your comment on the decline being 916m in out of 2400m etc) is going whooosh! over my head.
Despite that, what I have understood (I think) and believe based on my research, is that this is a share with a very good chance of a high upside. I’ll be keeping a close eye on developments across ALL of GGPs plots (not just Havieron), and making decisions accordingly.
Fingers (and toes) crossed!!
Happy to run through anything you’re not clear on.
WRT the decline - they’re currently building an “exploration” tunnel (which will obviously be used for mining once they’ve signed off on mining) which is almost halfway to the orebody.
The orebody has 400m of cover on top of it, and since you’ll be sending drills, trucks and other equipment up and down there, the tunnel will be multiples of this 400m (roughly 6) based on the gradient they can safely use.
They’ve been building this tunnel since May last year, it was initially slow to progress as they encountered soft ground which is tricky to clear as well as build the structure to make the tunnel secure (they were building less than 3m per day).
They’re now doing approximately 5.5m per day and getting quicker with every update. The harder rock makes it easier to drill and blast and they’re currently working 24/7 on this. The expectation is they’ll reach the orebody sometime in H2 next year. Only then can they start mining the orebody.
The delay in releasing the FS therefore means little, as it’s not going to speed up the progress on the decline, and means they can be more confident in the estimates made in the FS the closer we get to production.
Hope this all makes sense, within the next 24 months GGP will be cashflow positive and likely a dividend payer from 2025. Long term hold for me in my ISA and SIPP!
Without wanting to sound like a creep, that’s the most straightforward explanation I’ve read in a long time. That makes a lot of sense now when I relate it to the ‘official’ stuff I’ve read.
I read the LSE GGP chat, as well as the (un)official GGP forum GGPChat - The Main Forum - GGPChat and as I say most of the stuff the intelligent folk post on there goes over my head. What does sink in though, is that this is an exciting time to be picking up the shares, I think.
Many thanks for your kind offer; no doubt I’ll be in touch at some point on the next few years’ journey to success!
Btw it was an interview with Jim Mellon (about 4 years ago, maybe more) that first got me interested in this share.
Any news about GGP dear investors?
There’s nothing much different to report at the moment. in my view, this share is either a takeover target in the short to medium term, or, subject to sufficient funding, a potential multi-bagger about 3-4 years from now, depending on how the drilling goes.
My strategy on this is to buy a few when the price is low, like at the moment. Couple of quid here, couple of quid there.
Yes, I’m doing the same! Here for the long run anyway
Hello to everyone and wish you all a Happy XMAS!
Are there any news or movements with GGP?
Hello to you all!
Is there anything that knows the reason for the 10% drop lately?
Have a look here, you might find an answer