RE: Greatland Gold digging up surprises at new mine - Investor's Chronicle6 Feb 2025 17:48
Analysts at Canaccord Genuity have forecast a cash profit of $245mn (£196mn) for Greatland as a whole in the 12 months ending 30 June.
“We expect Telfer to produce [around] 336,000oz of payable production over the initial 15-month mine plan as lower grade material moderates the strong run rate seen in December 2024,” they said, and noted a “demonstration of life beyond the currently defined ore inventory is likely to be well received by the market”.
It hasn't all been smooth sailing at Telfer over the past year. Processing was halted from early 2024 until September because of instability in the tailings dam. Newmont fixing this was a requirement of the Greatland deal closing.
Secondary listing
On the corporate side, Greatland is shifting its primary listing and company registration from the UK to Australia. The Australian Securities Exchange (ASX) listing will be completed by the end of June, the company said in a trading update last month.
Day said trading would remain liquid in London but that the shift would open up the company to more investment from Australian pension funds and other institutions. “Having an Australian company that operates in Australia will be simpler, but we're really grateful for the support we've had here in London,” Day said, adding that joining the ASX would see it enter the equivalent of the FTSE 250.
“That should create a new pool of buying,” he said. Shareholders will get a vote on the shift.
Day added that shares would be “fungible” across the two markets, unlike the dual structure of Rio Tinto (RIO), where the plc and limited shares each effectively have their own board, albeit these are made up of the same people.
Taking a broader look at the London market, Day said the recent listing rule changes were very welcome. The changes would allow a company such as Greatland to shift to the main market before being able to show three years of revenue.
The other critical head-office work being done is a feasibility study for Havieron, the discovery that brought Greatland into existence. Working without Newmont or Newcrest, the other major Australian player which the former took over in a $17bn deal in 2023, has allowed a shift in thinking, Day said.
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