RE: GGP Hits New 14 Month Intraday High16 Nov 2023 10:05
On what we know, I suspect it’s interest in the MRE, as per Charles Archer.
Greatland Gold is on the verge of updating investors regarding the results of more than 80,000 metres of drilling that’s been ongoing since March 2022. For context, flagship Havieron’s current Mineral Resource Estimate stands at 6.5Moz @ 2.2g/t AuEq, but this was already more than 50% of the original maiden resource estimate from December 2020.
This updated MRE estimate has been delayed for some time, but significant financial confidence in Greatland can be found in both its banking syndicate and backer Wyloo, which suggests the upgrade will be significant — and perhaps might even start with a 9.
Analysts — and likely even Newmont itself — remain conflicted over whether the new titanic hybrid will want to retain Telfer and Havieron. Positive comments made by management about the jurisdiction last week point one way, but the fact remains that the value proposition at the current MRE simply does not meet Newmont’s objective criteria.
Of course, there’s always a little fudging room. And a huge MRE update will drastically change the economics.