A few brokers have been writing enthusiastically about Greatland Gold - FNArena17 Apr 2025 12:42
Another WA gold stock to watch out for
One would have to be living under a rock not to notice the historic rally in the gold price, and subsequently gold stocks.
A few brokers have been writing enthusiastically about Greatland Gold.
You are forgiven for not knowing the company, as while it is Australian, it is listed on the London Stock Exchange with a US$2bn market cap; and it is coming to the ASX with the aim of a cross-listing in 4Q 2025, including a reorganisation towards an Australian parent company.
Macquarie initiated coverage this week, highlighting the company became an “overnight” gold-copper miner of scale, some 200koz p.a. plus, post the acquisition of 100% of Telfer/Havieron in Australia.
Telfer is currently producing gold and copper, and Macquarie expects Greatland can successfully extend the life at Telfer until the satellite project, Havieron, some 45kms from Telfer, is developed. Ore is expected in late 2027, and the development of Havieron will retain production at over 200koz per annum.
Costs are anticipated to halve at the project and free cash flow yield increase to about 17% once Havieron is fully ramped up by 2030.
Canaccord Genuity also outlined a positive proposition for Greatland, noting the company had offered an upbeat announcement to the Telfer reserve, extending the mine by another 18 months, which assists in bridging the gap between Telfer and Havieron.
For Canaccord, the life extension at Telfer marks the key risk that has now been alleviated, with some investors worried the two trains at Telfer would have been idled in the absence of processable ore.
The company also reported a strong 3Q25 production report, which came in above Macquarie’s expectations by 22% at 90koz due to more robust recoveries at 87% versus expectations at 79%.
Cash on hand finished at $398m at the quarter, up by $235m and $198m above the broker’s forecast. Greatland is debt free. A maiden production guidance for FY25 was also offered at 196koz201koz versus the Macquarie estimate of 178koz, which has been raised to 199koz, with lower-than-estimated all-in sustaining cost guidance of $2,175/oz.
Macquarie retains an Outperform (Buy-equivalent) with a target price of 17p, with Canaccord rating Greatland Gold a Speculative Buy and 20p target price..."
https://fnarena.com/index.php/2025/04/17/in-brief-greatland-gold-pinnacle-resmed-hub24/
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