RE: PRIM RNS11 Dec 2019 07:52
FROM THE RNS
Back in late 2018 we took an investment position based on a handful of exciting drill holes and a belief that Havieron may prove to be a meaningful deposit. Twelve months later, with Newcrest now farming in to Havieron is, in our opinion, shaping up as a truly Tier 1 Australian Gold/Copper discovery that with continued exploration success has the potential to deliver in excess of 20Moz of gold and associated copper.
We are not aware of any other exposure for investors to Australian Tier 1 mining projects on the London Stock Exchange outside of Rio Tinto (RIO.L), Anglo American (AAL.L) and BHP (BHP.L).
From a purely financial perspective incongruously the Greatland Share price is actually below where it was the same time last year. With gold prices still buoyant this goes against what we would expect. The norms of gold exploration suggest that drilling ounces are "banked" with each success and the asset value growth is reflected in the share price.
The Primorus Board believes Greatland is a highly unusual outlier in a market consumed by liquidity concerns and devoid of the traditional small to medium institutional investors that elsewhere in the world invest in maturing but pre-resource gold companies. Regardless, we understand that drilled ounces don't just disappear, and we are at a loss to explain why the overall market is discounting the strong drill results each time they are released by Newcrest.
Given our views on Havieron stated above, we see this as an opportunity and may add to our investment should funds be available to do so. I would like to thank the executive team at Greatland for their hard work in 2019 and believe 2020 will be the year in which we will reap the rewards of patience and belief in our investment in Greatland Gold."
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