Greatland Gold interview: Finding the mother lode by Lee Wild from interactive investor | 26th September 2018 14:17
It's already struck gold, but now Greatland Gold needs to prove how large the find is. Chief executive Gervaise Heddle tells Lee Wild how he hopes the story will unfold.
Behind every mining company there's a great story. They know where the prize is, just not how much or how good it is. Trick for investors is to spot a great prospect with a better than evens chance of finding the mother lode. Not easy.
Far easier is to be seduced by the story, and Greatland Gold's chief executive Gervaise Heddle has a good one.
Greatland has been around on AIM for a decade or more, delivering the odd spike in share price penny share fans love. They'd not traded above 1p for over five years until last October when a flurry of activity quadrupled the price to a peak of 2.44p.
Within months, however, they were back near half a penny. A similar thing happened in June, although this time there's been enough interest to keep the shares above a whole penny and the market capitalisation at around £37 million.
That's largely down to progress at Greatland's two 100%-owned licences - Havieron and Black Hills - in the remote Paterson region of Western Australia. A second drilling campaign at Havieron began a few weeks ago, following a first round in the spring that established the presence of a zone of high grade mineralisation.
Source: interactive investor Past performance is not a guide to future performance
A maiden exploration programme at the 25 square-kilometre Black Hills licence also caused a stir earlier this year. Prospectors there were able to bend down and pick gold nuggets off the ground! It's a long way from establishing a large-scale economic mining operation, but a good starting point nonetheless.
Heddle, a former fund manager at Merrill Lynch, says there a "real buzz" around the area right now as rumours do the rounds that Rio Tinto has made a big copper discovery. Rio remains tight-lipped, but the chatter has triggered a flurry of activity, and there's already been a rush of licence applications.
Replicating success achieved at the nearby Telfer mine is the dream for Greatland. Owned by Newcrest Mining since the 1970s, it's produced millions of ounces of gold, but is nearing the end of its mine life.
Greatland has already made a discovery at Havieron, finding a "significant" intersection with its first hole – 121 metres at 2.93 grammes of gold per tonne. The latest round of drilling there – 10 holes planned at one per week – is designed to derisk the project, and should wrap up before the tropical storms arrive at the end of November. While the first hole suggests there's a big system there, Greatland will need hundreds of metres of mineralisation to really make this work.
So if 50 stores with Doddle made 45,000 new customers to Debenhams, then I suppose it is fair to say 150 plus stores will result in 135,000 new customers.
Debenhams is set to roll out Doddle click and collect points across its entire store network following a successful trial.
Under the new partnership customers will be able to collect and return parcels from any of Doddle’s 50 retail partners, including Asos and Missguided, across Debenhams entire 165-store estate.
This follows a trial period across 50 of Debenhams stores, which is understood to have seen 150,000 customers use the service, 30 per cent of which went on the make a purchase within the Debenhams store.
“This partnership is the ultimate win-win. It enables us to offer the convenience led UK omni-channel shopper an ever-greater number of high profile, convenient and trusted locations to collect and return parcels at and enables Debenhams to attract a high spending new demographic into its stores,” Doddle’s chief executive Tim Robinson said.
“The conversion of that footfall into such meaningful sales during the trial period demonstrates the crucial role click and collect services like ours can play during this critical time for the UK high street.”
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This follows a trial period across 50 of Debenhams stores, which is understood to have seen 150,000 customers use the service, 30 per cent of which went on the make a purchase within the Debenhams store.
Total sales for the week were up 3.9% on last year. The cooler weather positively impacted sales as customers enjoyed buying new season items.
Electrical and Home Technology sales were up 7.7%. Back to School promotions contributed positively to Communications Technology products increasing sales by 12.9% compared to the same week last year. Electrical products were also up due to strong demand for vacuum cleaners.
Fashion sales were up 4.3%. Womenswear had a good week with sales up 6.3%. Sales of Menswear was up 5.7%. Childrenswear, Nursery and Haberdashery sales were up 7.5%.
Home sales were down 1.1%. However, Gifts, Cook & Dine sales were up 3.6%, with hydration products such as water bottles proving popular with sales up 37%. Our new season own brand House range continues to do well with sales up 27% compared to the same week last year.