Greatland Gold plc (AIM: GGP) has officially commenced commercial gold production at the Telfer gold-copper mine in Western Australia, marking a significant milestone under its ownership. The company poured its first gold bars on December 8, 2024, just four days after completing the acquisition of Telfer and the adjacent Havieron project from Newmont Corporation on December 4, 2024.
Following the acquisition, Greatland has restarted full operations at the Telfer mine, utilizing both processing trains, each with a nominal capacity of 10 million tonnes per annum. Prior to the acquisition, only one processing train was in use, with the company focusing on preserving ore and stockpiles for processing after the deal closed.
As part of the transaction, Greatland inherited a substantial stockpile of ore at Telfer, estimated at 30.5 to 34.5 million tonnes. This includes about 11.5 million tonnes of high-grade run-of-mine ore, along with an additional 19 to 23 million tonnes of lower-grade material. Mining operations are ongoing at both the West Dome open pit and Main Dome underground areas, as the company looks to ramp up production.
In a further move to strengthen its financial position, Greatland has completed a hedging program for 150,000 ounces of gold. This program, secured through a banking syndicate consisting of ANZ, HSBC, and ING, features gold put options with an average strike price of A$3,905.17 per ounce. The options give Greatland the right, but not the obligation, to sell gold at the predetermined price, protecting the company against potential downturns in the gold market while retaining the ability to benefit from any price increases on 100% of Telfer’s output.
Shaun Day, Managing Director of Greatland, expressed optimism about the company’s future prospects, highlighting that the strong gold price and significant ore stockpiles present an exceptional opportunity for growth and profitability. The Telfer mine’s reopening is seen as a key step in advancing Greatland’s position in the global gold market.
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