Greatland Gold positive after 'transformative' year
By Josh White
Date: Monday 18 Nov 2024
(Sharecast News) - Greatland Gold reported a 'pivotal period' in its final results on Monday, driven by the acquisition of the Havieron gold-copper project and Telfer gold-copper mine from Newmont Corporation.
The AIM-traded firm, which remains pre-revenue, said the acquisition positioned its as a significant Australian gold and copper producer with a strong operational and exploration presence in the Paterson region.
Announced in September, the acquisition included 100% ownership of Havieron, Telfer, and related assets, with a total consideration of up to $475m.
That comprised $155.1m in cash, a $52.4m loan repayment, $167.5m in Greatland shares, and $100m in deferred contingent payments.
To finance the transaction, Greatland raised $334m through equity funding and secured debt facilities, including AUD 75m (£38.32m) in working capital and AUD 750m in project financing commitments from ANZ, ING, and HSBC.
The deal was expected to close by December, bringing Greatland control of Australia's second-largest gold-copper development project, a fully operational processing plant, and a significant workforce from Telfer to ensure operational continuity.
Greatland said Havieron saw substantial development in the period, with over 3,060 metres of decline progress, including 2,110 metres in the main access decline.
The updated mineral resource estimate in December last year revealed a 29% increase in gold equivalent content to 8.4 million ounces.
A feasibility study for the project was expected to be completed within 12 months of the acquisition's conclusion.
"It has been a truly transformative period for Greatland and our flagship Havieron gold-copper project," said managing director Shaun Day.
"Thanks to a huge amount of work by our Greatland team and a highly collaborative approach by our Havieron joint venture partner Newmont throughout the year, we have been able to seize a compelling and strategic opportunity to consolidate 100% ownership of Havieron and Telfer.
"The acquisition, announced on 10 September and targeted to complete by early December, will make Greatland a significant Australian gold and copper producer with one of the country's best development projects."
Day said the acquisition of Telfer would provide a de-risked near-term mine plan with "substantial" ore stockpiles at surface, and attractive mine life extension opportunities.
"Telfer's production is expected to generate free cash flow, supporting the development of Havieron.
"Ownership of the Telfer infrastructure substantially de-risks and reduces the cost of completing Havieron's development, and enhances the potential value of exploration success in our extensive Paterson exploration portfolio.
"We are well positioned to build a generational mining complex and create value for our shareholders."
At 1238 GMT, shares in Greatland Gold were up 5.65% at 5.55p.
Reporting by Josh White for Sharecast.com.
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