truthfulword301 Posts. 11818/12/1907:23Post #: 42021048ShareNotes on Bill’s call yesterday:NST very excited to own half of a world class asset, with the gold strike open in every direction, ability to increase reserves and resources and massive potential for underground mining. They’ve effectively bought Super Pit gold at US$140 per ounce and adding more ounces through exploration at $10 per ounce.NST paid slightly more than SAR because they’ve bought extra tenements, paid for transitional management team staying on for six months and power option. Also Newmont recently upgraded production for FY20 and expects to announce an increase in resource ounces shortly due to exploration done over past couple of years, especially in southern part of Pit.They see SAR as the perfect partner with each having complimentary skill sets. Bill describes it as the “dream team”. Doesn’t care who is part of management team as simply about who’s best for the role.The potential for underground mining is almost unlimited in regard to mine life with historically 60,000 ounces per vertical metre.Previous owners have focused on open Pit and little on underground potential (especially southern Pit extension). Lots of areas ready to go as identified already and lots of virgin unexplored areas too.Hedging to be at 25% over next three years which they will execute over next couple of weeks.Geological resource currently includes open Pit but little of the underground opportunity so expect resources to grow dramatically as indicated by drill results over last couple of years...expects results out in coming months.resources will be made JORC compliment in next few months.Already engaged with SAR and very excited as same focus, mindset and complimentary skills.Rock fall has caused a delay but not a loss of ounces and have a great detailed plan and many options to get it fixed and production restored.Pogo has hit an important milestone with Dec alone to hit 20000 to 25000 ounces having had a 50% uplift in production. They are now able to remove low grade dirt with transition almost complete with grades now above 11g per ton.Seems like they will buy profitable power asset as was just a timing issue and didn’t want it to delay the deal.looking to bring underground mining plans forward by many years...Existing mine plan sort to start underground mining in about seven years, however NST will look to have a detailed plan announced in new year and begin underground operations in next couple of years.not focused on production increases but increase in grade throughput by bringing forward underground operations.Mine life will be well beyond 13 years...based on existing resources 20 years and this doesn’t take into account ongoing exploration or the underground opportunity so who knows how many decades this mine could last.End of mine life restoration likely to be $150m for their half share. ........Note : Good analysis of Kalgoorlie situation from NST thread...see below...
SAR Price at posting:
$2.96 Sentiment: Buy Disclosure: Held
