First Telfer gold pour under new ownership
London-listed Greatland Gold has successfully poured its first gold bars at the Telfer gold/copper mine, following its recent acquisition of the operation.
The company completed its purchase of Telfer and the Havieron project from Newmont last Wednesday.
Prior to the acquisition, only one of Telfer’s two ten-million-tonne-a-year processing trains was in operation to preserve ore and stockpiles for Greatland. Shortly after the acquisition, dual-train processing resumed, marking the start of commercial production under Greatland's ownership.
Greatland acquired an estimated 30.5-million to 34.5-million tonnes of stockpiles as part of the transaction. This includes about 11.5-million tonnes of high-grade run-of-mine ore and an additional 19.0-million to 23.0-million tonnes of low-grade stockpiles. Mining operations are ongoing at the West Dome openpit and Main Dome underground.
“Greatland's first ever gold production at Telfer is a wonderful milestone and a credit to our team. Equally importantly, we are delighted to have resumed dual-train processing operations in line with our Telfer mine plan. The combination of a strong gold price and significant ore stockpiles at surface makes this a tremendous time to own the Telfer mine," said Greatland MD Shaun Day.
Ahead of the completion of the acquisition, Greatland announced that it had secured gold put options for 100 000 oz of Telfer production at an average strike price of A$3 887.50/oz through its banking syndicate of ANZ, HSBC, and ING. The company has now completed its hedging programme by purchasing put options for an additional 50 000 oz, bringing the total coverage to 150 000 oz at an average strike price of A$3 905.17/oz.
The put options provide downside price protection while allowing Greatland to benefit from any gold price increases across all production volumes.
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