RE:RE:RE:RE:RE:NVO now 10% higher than what KL sold for"........Maybe Mr. Moriarty's book will address this issue - looking forward to it. Sorry, just not believing that the "not a good fit" rationale is the whole story and reason that KL sold at a loss in a seemingly precipitous way......." I agree that “
not a good fit” does not seem to be plausible – the Detour open pit could be argued to be “
not a good fit” with UG mining at Macassa and FV, but TM / KL successfully bought and is developing this new mining project.
Accordingly, Novo would have complimented KL, with a portfolio of mine projects, could have include all the following:-
- Underground
- Open Pit
- Surface conglomerate
Out of the above mining types, the Pilbara surface conglomerate is potentially likely to have the fastest expansion track, which KL’s liquid resources could have exploited faster than its other projects.
Moreover, retaining a major shareholding in Novo would have consolidated KL’s attention to low cost mining, where
Novo is targeting high margin, in preference to high grade mining. Furthermore, TM has contracted KL’s interest in Australian properties generally (Cosmo etc – perhaps for commercial reasons).
However, the apparent narrow focus on the existing FV mine complex, seems to indicate that KL does not have the pioneering spirit to explore the Pilbara and other Australian properties that they have / had significant interest over. The first indication in this direction, was not stepping forward with Egina finance guarantees, leaving Novo to partner with Sumitomo.