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Havieron value grows $1b in two months


The Havieron joint venture gold project continues to grow in stature after Greatland Gold reported a $1 billion increase in its net-present value (NPV).

The project, which Greatland Gold (30 per cent) shares in a joint venture with Newcrest Mining (70 per cent), is now valued at $US1.2 billion ($1.74 billion) as at December 2021. Two months prior, Havieron was worth $US228 million, as per stage one of the Havieron pre-feasibility study (PFS).

The news comes after Greatland announced an updated mineral resource and ore reserve estimate in March, which defined a 53 per cent increase in total gold content when compared to the October PFS release.

Newcrest, which intends to secure an extra five per cent interest in the project, will have to pay $US60 million ($87 million) for the increased stake. The company had 30 days to exercise the option as of July 21.

Greatland Gold said the $US60 million price tag was in accordance with the principles agreed in the original Havieron farm-in and joint venture agreement.

“Greatland has delivered a tremendous result in delivering a value uplift of over five times when compared to the stage one PFS which was released just two months before the option pricing date,” Greatland Gold managing director Shaun Day said.

“To achieve this uplift is testament to the strength of the technical and commercial teams that we have built here at Greatland as well as the relentless growth of Havieron.”

Day said it is onwards and upwards for Havieron.

“Looking ahead, Greatland looks forward to working to realise the tremendous opportunity at Havieron to develop a low-risk, low-capex (capital expenditure) and world class gold-copper mine,” he said.

“The substantial uplift demonstrates the value creation trajectory of Havieron is exceptional with an upcoming expanded feasibility study, the future potential to define the bulk mine zonations and the continued benefit from the ongoing growth drilling to deliver exploration success.”

The Havieron feasibility study remains on track for release in the December quarter of 2022.

Determined as of December 2021, the $US60 million option price doesn’t take into account subsequent exploration progress at Havieron.

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