RE: Share price5 Feb 2026 22:51
From MeM on OMI BB
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“Not exactly. Broadly speaking, as a gold prospect generator, that view might hold — but let me explain, because there are several factors at work.
At the point where true value is first created — the “HAD005 moment”, when you actually discover gold — the share price is leveraged partly to the gold price and partly to market perception and expectations.
At that stage, the share price reflects value in the ground, which itself depends on multiple new variables:
size and grade how big the system is
location
and, critically, the realistic probability of becoming an economic mine
Many projects fail. Many mines fail.
Above all, however, the share price reflects the market’s confidence in management’s ability to deliver a mine or project. That’s precisely why GGP’s share price fell so hard while De Grey’s didn’t fall as badly in 2022.
Once you become a gold producer, everything changes.
The key difference is that you can now leverage your balance sheet and cash flow against both operational performance and the gold price. You’re no longer forced to rely on debt. You can: fund project development internally, accelerate projects , discover additional ounces, consolidate assets , acquire complementary projects
In short, production gives you control — and that’s where sustained value creation really begins.
GGP's SP exploded once it became clear GGP management had control.
A wise and called Rusty Delroy once said 8 or 9 /10ths of any junior miner or developers value /market cap is essentially the market's confidence that they will deliver.
This is easily demonstrated by Solgold was recently sold for £850m whereas GGP is today worth some £4.5bn and pumping out $ billions in revenue.
But yet solgold had over 24moz of gold - versus GGPs 3 moz. Funny that don't you think.
Serious investors (ie the market) felt Solg management were un-investable.”
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