Another Clown14 Apr 2025 13:24
Here is Stockopedia's view of GGP, just published. 'AMBER/RED (Roland)
Today’s quarterly update seems to suggest GGP is making good progress with its strategy. Gold recovery levels are higher than budgeted in the pre-acquisition plan, contributing to higher production. At the same time, record gold prices are providing operating leverage, resulting in strong cash generation.
However, earnings forecasts are unchanged and are expected to be broadly flat in FY26 due to further dilution. With no established track record of production and gold already at record highs, GGP shares look expensive to me on c.30x earnings. My impression is that near-term upside might depend on the gold price – I can see some risk of a correction if gold weakens. I am not convinced the stock offers value at current levels and share the algorithm’s view that this could be a momentum trap.
Clearly clueless.