Hydro – Why you should buy Greatland Gold
Read the Cannacord and Berenberg notes. They’re available in Telegram from GGP Help.co.uk.
They estimate production 300-500koz rising to 600-700koz in the first few years of Sub level caving production (end 2022 or early 23) from the top of the ore body with a low AISC or around $330-450/oz (due to leverage off existing infrastructure) Bulk underground Block Cave looks likely to follow this, with production estimated around 2028.
Key thing is: T1 deposit + T1 partner (great balance sheet) + T1 jurisdiction. Never seen a major project progressed as quickly as this before. Something like $270m already spent/invested in the project to get to where we are today.
Most qualified Geos are expecting 15-20moz minimum from main ore body and 1mt of copper.
We have multiple (3) immediate vicinity ‘satellite targets’ within the licence, which have been established via satellite intelligence from posters like Paddygall1 on twitter for around 9 months, but only recently announced by NCM.
This board is about 6 months ahead of the actual announcements. There has been a lull in drilling results since march due adverse weather and delays in the Assay labs but a new huge lab was just opened in Perth to increase assay processing capacity.
We’re expecting a bumper crop of new drill results given Havieron is open at depth and in 3 directions beyond the external satellite targets.
Where looking at a compressed Lassonde curve being located somewhere in the orphan stage.
Significant inferred MRE upgrade and indicated category resource upgrades expected in December.
PFS could come soon possible October earliest December latest.
NCM are in a massive hurry up because they just commissioned a new cutback extension to Telfer’s mine operations in zone 5, which is expected to produce to 2023 now, extending their life, but Telfer is on life support and running on vapour so they need Havieron’s ore high grade stream and fast.
Risks are chiefly getting the decline completed quickly and efficiently and of course metallurgical – but the deposit is very similar in genesis and host rock to Telfer so early metulairical indicators.
Newcrest are funding GGP to the tune of $50m cash loan, to ensure we have the cash to deliver our side of the mine development finances. I expect they would loan more cash if necessary to keep the likes of Franco Nevada / Wheaton away.
They have the option to buy a further 5% after the PFS at fair market value but given Havieron is just getting bigger and bigger, I expect fair market value cannot be established for some time yet – which incentivises NCM to bankroll GGP.
NCM cannot afford any delay and are now pitching Havieron to their Shareholders as their flagship development.