Out look12 Mar 2021 09:12
I’m still buying up to 30p I did pause last year.
Just been reviewing a few articles from the professionals like detailed below.
Between the announcement of a new incoming CEO, and a price upgrade from Berenberg, Tuesday has proven to be an auspicious day for Australia-focused metal mining company, Greatland Gold (AIM:GGP).
Investment bank, Berenberg, noted that GGP’s maiden resource of 4.2Moz on a gold equivalent basis was ahead of it prior projection of 3.75Moz for the company’s Havieron project. This, it said: “demonstrates the deposit’s exploration potential. It also makes it more likely that Newcrest Mining, which is set to earn a 70% interest in the project, ultimately elects to move forward with development with a prefeasibility study guided to be completed by the end of 2021.”
Berenberg added that it had updated its price valuation: “to account for the maiden resource and exploration results that, in our view, suggest a materially larger mineralised system than we had previously envisaged and we now ultimately expect a deposit of 12.5Moz to be delineated based on the current drilling (versus 5.5Moz previously).”
Based on the average EV/reserve ounce for Australian mid-tier gold miners, and assuming a 50% profitability weighting, the bank have decided to upgrade their price target on Greatland Gold shares, up by 50% from 22p, to 33p apiece.
So still a great buying opportunity here.