RE: News hi16 Jul 2019 09:15
Stout,
In answer to your question, GGP is currently capitalised at £63m @1.90/1.92p.
The market or MM*s are familar with valuation models at different inflection points. Often, in the commodity supercycle, the values are much higher.
At this moment in time, we are awaiting the Havieron results [prelimin] from Newcrest. For this reason, Gervaise Heddle said we have a lot more to say on Havieron as and when they release some results or an idea of what*s happening.
It appears that the further results are to flesh out the discovery. If one looks at the drill results of Solgold, say, one is not looking at what DJ said, stellar grades in a few holes as these do not appear to make up the total tonnage.The aim is for tonnage and the final average grade. As for Solgold [historical now], they look for continuity of the discovery and depth. This is norm for major discoveries.
So, as and when Havieron or Blackhill results come out, the market will then re-rate accordingly to the info.
Many co*s aim for the potential and GGP has already made known their aspirations etc.
So, the share price for the current moment reflects the Havieron 9 hole results and perhaps Paterson Range East potential. At max, the market will attribute a X mkt cap which will range from X to Y [depending on the mining cycle and prices etc].
In direct answer, one will see in the coming days what the market is prepared to attribute to GGP. That is the stock market game.
Hope that helps. I have never given share price targets.
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