Why GGP is safe1 Feb 2021 21:57
A lot of well informed posters have given various reasons and facts but I thought it might be worth sharing my non technical thoughts.
Quite of few of my non mining investments are down over last couple of weeks and mining ones were already discussed here.
My other investments include clean energy stocks and they have potential to do several bag this year, based on emphasis on green environment, however I feel GGP is still a much safer bet even if it does not bag several times in 2021.
The reason for GGP being safe is that it is oversold and lot of reasons are discussed here. For me, it is simple, based on broker note 4.2Moz gold reported values around sp of 22.18p (66p for 12.5Moz) and we know it is open at depth and large area of discovered deposit is still to be estimated. History says that these estimates are always conservative and it ends up more over the years. Therefore based on HAV itself, this is long way undervalued, assuming zero value of any other asset.
As many have said, gold is already discovered, lot of experts have backed this discovery, infrastructure for processing is in place and funds are ready for works to start. So is this not as safe an investment as you can get in these uncertain times?
Lot of other companies might have higher potential however they are normally based on new discovery, products, deals or sales which is not guaranteed (risky) including those for Amazon, Apple or Tesla. They all have competition which GGP doesn't. GGP have also secured many licenses required to mine without issues and Australia is safe mining jurisdiction.
Only issue I can see with GGP is a natural calamity by which gold disappears like earthquake or volcanic eruption or comet falling off the sky, which no company can factor in.
Hence for my non technical view, I feel this investment is as safe as anything you can get in this uncertain environment and any sp drops should be seen as an opportunity rather than a threat.
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