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DEG - De Grey Mining

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DEG down under the CR price at around a buck. Longer term opportunity perhaps, but still some spilt milk to flow under the bridge with financing the build.

I assume an announcement will be made once the credit approvals are settled mid year, which isn't far away. Or, maybe they wait until the final financing structure is settled some time in H2.

I think it's potentially in the second down dip on the Lassonde Curve at the moment and then once debt is sorted and finance risk taken out it may start going back up the second bump on the Lassonde into production which will take two years.

If Lassonde is right, and all else going to plan including POG stability or advance, then it looks like it's in a sweet spot (blue circle).

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Credit approvals in and they're going to have about $1b debt to draw on. That will bring their total cash available to about $1.8b which is quite a bit more than the DFS Capex of $1.345b. So, I'm a little confused here. Why do they need an extra $400m available? My maths isn't the best, but huh? Maybe there's some directors and management performance fees to cater for.


Screenshot 2024-06-28 at 9.48.07 AM.png
 
Sean K said:
Credit approvals in and they're going to have about $1b debt to draw on. That will bring their total cash available to about $1.8b which is quite a bit more than the DFS Capex of $1.345b. So, I'm a little confused here. Why do they need an extra $400m available? My maths isn't the best, but huh? Maybe there's some directors and management performance fees to cater for.


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@Sean K
I believe the cash position exceeding HEMI budget, does not mean DEG will spend the lot or overrun.
It is essentially assuring the market that they are not going to rattle the can seeking more capital and instead will draw the money progressively. DEG will pay interest only when they draw. That is a good sign for the investor
Going forward, the market will look into the schedule and any delay to finish the construction and commissioning of the HEMI project.

I personally think, the announcement demonstrates DEG capability to be astute, credit worthiness and providing full support for HEMI.
Please refer to the ASX announcement which also needs few dollars for DEG if they decide to continue.
Just to recap some of the past announcements.
DNH


https://cdn-api.markitdigital.com/a...-research/1.0/file/2924-02769754_PS-6A1192881 (option to acquire Ashburton or to reject )

 
Last weekend, with a myopic vision, I was contemplating some wishful thoughts on DEG on the side of M & A
What about DEG gets acquired by Roy Hill, MIN or GOR in next 24 months or when HEMI project gets it feet into?
Traditionally MIN has not established itself greatly to acquire a developer and that too in gold area. Same applies for Roy Hill. But both are risk takers and large organisations. GOR has its strategic investment on DEG already and knows better the future of gold as well as DEG.
Should I revisit this wishful thought in late 2026/ mid 2027 ?
May be gold will go up following Uncle Sam's demise and geopolitical reasons in Iran, Ukraine or Poland ?
DNH
 
Miner said:
Last weekend, with a myopic vision, I was contemplating some wishful thoughts on DEG on the side of M & A
What about DEG gets acquired by Roy Hill, MIN or GOR in next 24 months or when HEMI project gets it feet into?
Traditionally MIN has not established itself greatly to acquire a developer and that too in gold area. Same applies for Roy Hill. But both are risk takers and large organisations. GOR has its strategic investment on DEG already and knows better the future of gold as well as DEG.
Should I revisit this wishful thought in late 2026/ mid 2027 ?
May be gold will go up following Uncle Sam's demise and geopolitical reasons in Iran, Ukraine or Poland ?
DNH
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Might be a few hovering to take it. I thought Gold Fields might have by now with their connections at GOR.


Screenshot 2024-07-01 at 11.37.12 AM.png
 
Sean K said:
Might be a few hovering to take it. I thought Gold Fields might have by now with their connections at GOR.


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Gees
I am pleasantly surprised to see my wishful thoughts were not that bad and I did not read the AFR either.
Thanks @Sean K . That sounds great.
I still regret lecturing about MIN as a good buy when it was $2 :(
 
Hemi Regional Scoping Study - DE GREY MINING
ASX ANNOUNCEMENT
11 July 2024

Highlights
  • The Hemi Regional Scoping Study (the “Study”) is an initial evaluation of the potential development of the Hemi Regional deposits located to the east and west of the Hemi Gold Project (“Hemi”)
  • The Study presents a strong financial and technical case for the potential development of the Hemi Regional deposits within the first five years of operations at Hemi and would be funded from operating cashflows from Hemi. The Regional Project development would not be funded by the Company’s existing cash reserves.
  • The Company will continue targeted regional exploration seeking to add to De Grey’s global Mineral Resource whilst enhancing the Study evaluation. It will also continue lower-level studies that will not distract the Company from its key Hemi development but will improve the status of the Regional Project.
De Grey Managing Director Glenn Jardine commented:
“Hemi represents a provincial scale exploration and production opportunity and the Company is actively assessing ways in which the long-term production profile of the Project can be enhanced over and above the Hemi DFS production profile outlined in September 2023. The Hemi Regional Scoping Study provides an important initial evaluation of part of this potential to both extend and increase the production profile.

“The proposed 10 million tonne per annum pressure oxidation circuit at Hemi is a regionally strategic asset that has the potential to treat additional oxide ores and gold concentrates from outside of the main Hemi deposits. The 2.2 million ounce Hemi Regional Mineral Resource is an obvious first source of additional feed and this initial Study outlines how an integrated development of the Hemi Regional deposits could be both technically and financially attractive.

“Flexibility exists in both the timing and sequencing of developing the Hemi Regional deposits, which will be further examined as part of additional studies. We will continue to conduct targeted exploration for new Hemi Regional discoveries and conduct Mineral Resource extension drilling at selected existing deposits to improve the initial scoping study outcomes.

“Our strategy is to time the development of the Hemi Regional Project utilising cashflow generated from the fully commissioned Hemi Project, while also bringing forward cashflows from the Hemi Regional deposits as soon as practicable. The Hemi Regional deposits will not displace any material from Hemi but aim to utilise the expected latent capacity within the front and back ends of the Hemi plant.”
De Grey Mining Limited
Ground Floor,
2 Kings Park Road
West Perth WA 6005
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Copyright © 2022 De Grey Mining, All rights reserved.
 

Attachments

  • DEG REGIONAL SCOPING STUDY ANNOUNCEMENT.pdf
    2.4 MB · Views: 3
Miner said:
​
Hemi Regional Scoping Study - DE GREY MINING
​
ASX ANNOUNCEMENT
11 July 2024

Highlights
  • The Hemi Regional Scoping Study (the “Study”) is an initial evaluation of the potential development of the Hemi Regional deposits located to the east and west of the Hemi Gold Project (“Hemi”)
  • The Study presents a strong financial and technical case for the potential development of the Hemi Regional deposits within the first five years of operations at Hemi and would be funded from operating cashflows from Hemi. The Regional Project development would not be funded by the Company’s existing cash reserves.
  • The Company will continue targeted regional exploration seeking to add to De Grey’s global Mineral Resource whilst enhancing the Study evaluation. It will also continue lower-level studies that will not distract the Company from its key Hemi development but will improve the status of the Regional Project.
​
De Grey Managing Director Glenn Jardine commented:
“Hemi represents a provincial scale exploration and production opportunity and the Company is actively assessing ways in which the long-term production profile of the Project can be enhanced over and above the Hemi DFS production profile outlined in September 2023. The Hemi Regional Scoping Study provides an important initial evaluation of part of this potential to both extend and increase the production profile.

“The proposed 10 million tonne per annum pressure oxidation circuit at Hemi is a regionally strategic asset that has the potential to treat additional oxide ores and gold concentrates from outside of the main Hemi deposits. The 2.2 million ounce Hemi Regional Mineral Resource is an obvious first source of additional feed and this initial Study outlines how an integrated development of the Hemi Regional deposits could be both technically and financially attractive.

“Flexibility exists in both the timing and sequencing of developing the Hemi Regional deposits, which will be further examined as part of additional studies. We will continue to conduct targeted exploration for new Hemi Regional discoveries and conduct Mineral Resource extension drilling at selected existing deposits to improve the initial scoping study outcomes.

“Our strategy is to time the development of the Hemi Regional Project utilising cashflow generated from the fully commissioned Hemi Project, while also bringing forward cashflows from the Hemi Regional deposits as soon as practicable. The Hemi Regional deposits will not displace any material from Hemi but aim to utilise the expected latent capacity within the front and back ends of the Hemi plant.”
​
​
De Grey Mining Limited
Ground Floor,
2 Kings Park Road
West Perth WA 6005
​
​
​
​
​
​
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​
Copyright © 2022 De Grey Mining, All rights reserved.
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Not sure why this wasn't part of the original FS. How hard is it to add 2m ounces into the mix from 40km away? Dig, truck, unload, gold. This is not rocket surgery.
 
Hopefully it is helpful to the Gold Road share price, no positive reaction today.
Gold going parabolic at the moment so both should have a better day tomorrow
 
brerwallabi said:
Hopefully it is helpful to the Gold Road share price, no positive reaction today.
Gold going parabolic at the moment so both should have a better day tomorrow
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DEG's price today has gone down after the announcement.
The announcement says the fund for regional studies will be coming once HEMI stabilises and provides cash flow. So, a solid 2-3 years after commissioning is done, the plant is in operation, the design nameplate is established, and at least 12 months of production to churn out cash flow. (IMO) It is a brilliant strategy; shareholders should happily hold their equity without dilution. The dividend payout will probably be compromised, but I believe AMAZON does not pay dividends. If all goes well, DEG will be a billion-dollar world class investment.
DNH
 
Miner said:
Quarterly reports published today.
Would be interested to see how market reacts


DNH
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I can't find anything new in there.

The only crocodile might be any heritage and native title speed bumps. Wouldn't be surprised if the Environmental Defenders Office is putting their nose into this. But, royalties will be too much to ignore.
 
Three announcements from DE Grey to make the investors and funders hopefully to be excited.
  1. Drilling announcement today https://cdn-api.markitdigital.com/a...93&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d
  2. Director's purchase on Friday 26th Julyhttps://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02831888-6A1217495&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d
  3. New GMO - shows seriousness and good planning from DEG Board /Management to make Hemi a real success https://cdn-api.markitdigital.com/a...39&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d
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The most powerful statement on the above announcement to me appears to be this one - all results are outside of the current Hemi MRE :) :
1722210527043.png

Now bought a small parcel to join the believers :)
We would soon know the market reaction .
 
Miner said:
Presentation from DEG Managing Director Glenn Jardine at the Diggers and Dealers today.
Two years pay back - an ambitious target but DEG has a plan and capability structure unlike many others. My best wishes to DEG shareholders and team behind to make it happen.

View attachment 182131View attachment 182132
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Today I joined the DEG share register for the first time since those heady days of 2003.
Mick
 
mullokintyre said:
i did very well out of it on the way up, then lost it all and then some on the way down.
Scarred me for 21 years.
Mick
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Hello Mick @mullokintyre
Trust you are well and read the D & D presentation.
I was scratching history to find DEG history in last 21 years. Noticed from the presentation that DE Grey was born only 7 years back and it was INDEE then. So curious to know your holding DEG shares for 21 years unless it was a typo.
Please refer page 21 of the D & D presentation giving various announcements for DEG commencing 2017.
Not an issue for me however.

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.
 

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