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I know that many of you on here are, like myself ex SXX......this however, both as a board, and as an investment, has an entirely different feel to it. It seems to me that the the business model here, and in particular the arrangement between GGp and Newcrest is very reassuring from a GGp investor's point of view. Maybe that is a strategy or business model, that if pursued by SXX may well have led to a different outcome. Needless to say , I feel a lot better with this than I did with SXX
1gandhi, I also thought that the "start of the journey" implies similar. If we were getting bought out, or hav bought out, we'd be either near the end of the journey, or near the start of a new one! Just purely an interpretation on my part.
TtB. Suddenly the reason for the H&P initiation report makes sense. H&P specifically mention the cost to GGP of sharing the mining of Hav with NCM:
“We estimate a total capital cost for Havieron of US$158mln with US$34ln to be borne by Greatland, less than 10% of Greatland’s market cap. We believe this makes the Company a unique investment proposition versus peers due to its low capital cost requirements for such significant and high-margin production with low funding risk. In addition, having a high-quality partner like Newcrest constructing and operating Havieron significantly reduces execution risk, in our view, versus a scenario in which a junior has control of the project.”
1p per 1 Moz... Hence brokers looking towards sp 12p
ATB StellaBob
StuartW,
Great post and referred same to my bro for his consideration. As you say, what a smashing dilemma to have.
Kind regards
UR
Thanks Holly14!
You hit the nail on the head. As I've said many time is the past, and not just here, everyone's investment strategy evolves over their lifetime. Taking GGP as just one, of many thousands of examples, there are investor's who have got in early, well sub 1p, and many that have got in much later. I just can't understand some people on this forum, that bully some other's, and indeed threaten to filter them (they never really do, or maybe do for a short time) for even suggesting that they've top-sliced!
When, if indeed ever. everyone accepts, which will probably never happen, that we all have different investment choices and desires, then this forum will become even more friendly than it generally has been recently.
GLA & DYOR!
is there a 'rule of thmb' for the MRE regarding what evey 1 Moz of gold estimated will add to the SP ?
thanks
If considering top slicing, then just ask yourself one question. Is there a better place for my money to be? This could be a holiday, paying off debt or another investment. If the answer is yes to any of them, then top slice. If it’s no, then hold for gold. Personally I’m holding up to a certain figure (around 25p +) but will consider position at that time. The Wife might want to buy that camper van :)
Stu - brilliant post. I've a feeling also... This is the start of our journey! In my mind the ge'os shout Scally. Which is well worth holding on for. There will always be 'protect your money' 'top slice' etc etc. Warren Buffet said back in the day... Not too difficult - find a good share and stick with it
ATB StellaBob
A pretty great dilemma to have but one nonetheless.
Something I love by with GGP and my investing theses days is This quote “cut your losses quickly and let your profits run. “
Nothing wrong with slicing if you need the money or it’s part of your strategy that you stick to no matter what. BUT.
I’ve pivoted my own strategy with GGP mainly due to the length of time invested and my own and others fantastic research. Normally I agree with managing your exposure and taking profits and free rides etc etc etc, but with GGP and against the backdrop of the current and likely to continue global crises,I think it’s the wrong strategy personally.
Instead,I have waited for results and made my decisions based on those and not on a predetermined Strategy against a certain SP or gain.
Ask yourself this.
what did I invest in gold exploration in AIM for? Then ask yourself if GGP is delivering so far and if they have any further or future potential to deliver with and without the wider macro economic environment.
Once we have our MRE(I anticipate 7-10moz at best but ofcourse it can be more or even less) then we bank that gold and it’s value in our SP. you can not unfind the gold and we know from the horses mouth that they are going to mine this bar some left field calamity(even covid couldn’t slow them down)
We are about to receive hopefully our 8th set of outstanding results,possibly to include some of those large step outs.
I for one don’t place much value yet in scally or our other licences when just looking at them on paper fresh,but remember,we have a proven track record,we’re in the hottest region,we Own them 100% and are fully funded to do the drilling ourselves. All bets are off if we really hit there. So again ask yourself,not much yet is priced in for those(analyst gave 50m for all in the 12.9p valuation) so if we miss,who cares we shouldn’t half or crash as our sp is based on HAV. Whereas if we hit! Well,I’m sure you don’t need me to tell you what will happen.
GGP is a long term investment that you add to when you can. Top slicing is for company’s that don’t have this sort of potential and continue to Derisk and rerate on fundamentals.
Just my take guys and girls. All IMO ofcourse but you don’t get a company like this come along very often,we could well be the next SOLG. I’m so glad Ive hung on and added and I won’t be selling based on SP,but rather on the fundamentals here and I for one believe we are at the very start of our journey and against a backdrop of the perfect storm for the commodity we have found and continue to explore. Good luck with whatever you choose all,but I hope to be chatting to a few in a couple of years time reminiscing about the weekend we first hit double digits.