Greatland Gold

Greatland Gold (GGP) is a company trading on the UK AIM market. The company was brought to clients’ attention in 2016, around 0.28p mark, and today it trades at around 2p. We believe GGP has a lot more potential, so let’s take a more in-depth look at the company. Click here to download the full report.     Greatland in over 5 years has had a number of very big spikes, followed then by large retracements, which allow for individuals who believe in the company to either have sold at a large profit or have added further to a longer term investment. Accumulating shares this way can be immensely profitable assuming the company goes on to do what it is supposed to do, i.e. find gold in large quantities at a low cost of production. Background The Company was established in London during 2005 and admitted to AIM in July 2006. GGP’s primary focus is on the geographical region of western Australia and Tasmania, where they have 6 fully owned exploratory sites that are currently undergoing drilling and assessment for further potential gold, copper and cobalt finds. The company finished the six months to December 2018 with approximately £4mln in cash. This money will be used to continue with exploration work across the company’s Australian assets, including follow-up work on Havieron, where Greatland drilled a world-class intercept of 275 metres grading 4.77grams gold and 0.61% copper. It can be seen that directors hold a few shares but not exactly a massive amount in comparison to some of the institutions, it should be noted that when the word “nominees” is stated ,this can refer to client holdings, not necessarily the firm itself. Recent news Newcrest Mining has pounced on one of the most exciting mineral discoveries in Australia in recent years, striking a deal that will see it pump $US65 million ($92m) into the Haveiron copper-gold project in Western Australia’s Paterson Range (reports The Australian). On the 12th March, according to the Regulatory News Service, Newcrest Mining, one of the world’s largest gold producers, has announced a $65million farm-in joint venture deal for one of Greatland Golds prospects. The key terms of the agreement, as set out in the announcement released by Greatland, stipulate that Newcrest has the right to acquire up to a 70% interest in 12 blocks within E45/4701 that cover the Havieron target by spending up to US$65m (roughly £50m or AUD$90m) and completing a series of exploration and development milestones in a four-stage Farm-in over six years. The figure can be seen as quite a low-ball offer as the potential for what Greatland Gold could have could be, excusing the pun, “great”. But the project still carries many costs and risks and Newcrest are currently bringing something to the table in terms of world class expertise in the area and investment, this should be seen as a very positive move for GGP. Outlook With GGP the share price can be difficult to predict, as there are a lot of shares in issue and also because it is known as a company that tends to sell down on positive news only to shoot back up again at the least opportune time, but as with all good AIM stocks in the end the long term holder (LTH) wins. If the company is scalable and grows as expected, then many times initial investment is certainly possible and the indications are early but good, then Greatland Gold could be one of those companies. Long term holders tend to not worry about short term fluctuations and instead treat sell offs as a buying opportunity, and with the AIM being somewhat devoid of Australian gold miners, GGP certainly looks like one of the best out there - just don’t expect an easy win, the real money would have been the accumulation below 1p. This buy from 2016 seems to indicate time for large accumulation points for private investors, the average deal size is much larger than the preceding trades before-hand. This £31,334 investment today at a price of 2p would be worth £482,061.54. Lunch sorted.