The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I just want to preface by saying, I'm not touting that £3 WILL happen, but I'd like to present a possible and sensible route it could.
If the values of the underlying currencies dramatically changed (which is possible in the current economic climate with the continual printing of currency and other factors) then the £3 suddenly appears to be a bit more realistic... Of course this sort of inflation would mean your buying power doesn't increase, just you wouldn't lose it either.
If the values of Gold and Copper increased dramatically (possible due to aforementioned occurring, current supply shortages, gold being seen as a safe investment against inflation, etc) then likelihood is the Mcap of Newcrest, GGP, etc would all adjust accordingly. This would ultimately mean GGP would still be below Newcrest's Mcap but could reach £3 this route. I have to say this would likely be a contributing factor as opposed to the single reason...
If GGP struck multiple other feasible mines, kept up good management and thus enjoys continual growth... That'd help a lot too. If they played their cards right and also got lucky, they could have revenue streams from the JVs with Newcrest and progress to become a successful miner themselves. It's not out the question that GGP could become directly comparable to Newcrest in the future; this would take some time of course, probably decades.
In conclusion, £3 is possible and the goal posts of comparison can always move; hence why a comparison to Newcrest's current Mcap isn't as silly as it sounds. I'm by no means saying £3 will happen, just to reiterate, but I am presenting cases where it could. Only time will tell.
GLA. Rezon
"The limitation on gold ownership in the United States was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars, and certificates by an Act of Congress, codified in Pub.L. 93–373, which went into effect December 31, 1974."