RE:RE:RE:RE:Newmont delays Peru expansionHi Clarke,
IMO, Newmont would not of chased down the Coffee project if they didn't inherit it from the GoldCorp buyout, as too small of a project.
So my question to you is why did Newmont pursue the permitting process for a measly 5M oz gold project, as I expect the process was very costly to obtain in terms of resources committed and expenses endured moving it forward.
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https://www.newmont.com/investors/news-release/news-details/2022/Newmont-Coffee-Gold-Project-Approved-by-Federal-and-Territorial-Governments/default.aspx
IMO, this strategy executed by Newmont is their starting point to grow a large gold inventory in the Yukon, and that's why in time they will have ownership of the 21M ozs of Au at Casino.
Keep in mind Newmont is the leading gold Company on the globe.
The RT/WRN Partnership Agreement document "condition" was left open for other Companies to enter Casino at a later date if interested. IMO Newmont will be that Company to enter the CASINO picture after the upcoming Partnership Agreement extension in latter 2023.
In the interim WRN will continue advancing Casino through the Permit process with YESAB.
As per the Crux interview WRN has the funding, staff hired, along with consultants in place, indigenous community support, and the political will to advance Casino eventually to a shovel ready sale.
WRN has enough funding 38M in the kitty to get them through the process moving forward.
As per the Crux interview Paul West expected the permit would be completed/granted in about a year's time.
Yes, they will have to dilute shareholder value somewhat, but the Majors will have to pay additional costs as the project will be fully derisked when Casino is shovel ready. The longer the Majors procrastinate the higher selling price rises.
"What is THE event getting Casino to an appropriate market cap justifying a sale"?
IMO, in no particular order-
Two Majors (RT-Cu/NMT-Au) setting aside the Greed factor and partnering throughout the Project from start to finish.
1.This means equal cost sharing, reducing the CAPEX for each party involved by 50% to build the mine.
2.Rising global costs of Copper and Gold due to supply & demand ratio as we move forward towards the electrification process.
IMO, these will be the critical factors that will convince both Majors to work together as a team, and to meet adequate profit expectations.
In the end both Mayors will come around as Casino is ranked #1 globally of the 5 top junior Companies in size and most advanced towards getting to the mining stage.
Eventually, as we move towards closure ie. shovel ready Casino will sell for a $15+ share price. AIMHO.
Blue