Cagey Newcrest baulks at Havieron gold price tag

Peter KerResources reporter

Updated Aug 19, 2022 – 10.45am,first published at 10.21am

“We have got a lot of projects to allocate capital to and we have got our shareholders to think about too.”

While Newcrest said the decision was based on price, it may also be an important tactical move designed to avoid a price discovery event for Greatland Gold, which many observers believe is a logical takeover target for Newcrest.

Newcrest has acquired stakes in some of Greatland’s other projects around Telfer and Havieron, suggesting Australia’s biggest gold miner sees value in Greatland above and beyond its stake in Havieron.

Newcrest’s decision not to take up the option to buy the extra 5 per cent effectively undermines the valuation boost Greatland received after the independent valuer put the implied $US1.2 billion price tag on the Havieron project.

Mr Biswas said on Friday that Havieron was not the only option to extend Telfer’s life; Newcrest was also studying options to extend the life of the existing open pit at Telfer.

Sandeep Biswas says Havieron isn't the only option they have to extend Telfer's mine life, I'm sure Minyari Dome and AZY'S other landholdings is being considered an option.