This underpins the investment case.3 Nov 2021 10:03
This RNS underpins the investment case for GGP. Investment that is, not the trader gambling case!
Put it into context of the whole GGP operation along with SD's stated aims for the company. A multi asset multi $bn company.
We are no longer an explorer only stock. One where you need to raise capital to explore and drill in the hope that you hit something commercial. Speculation rife and large swings in the sp being the norm. Either you hit (and make some big gains) or you miss (and make some big losses) sell up and start again.
Well, we have hit. We have hit big and we have also hit big with our JV partner.
We will no longer have to raise capital to explore via dilution. We will have the ability to explore using our positive cashflow from HAV. Maybe even a dividend and/or share consolidation/buybacks? Who knows.
The gambler/traders will continue to play their games for a while, but soon will move on to more attractive stocks with volatility (the stuff they need to play with).
GGP is now (IMO) a long term investment. I will keep buying, at least until ore is being processed at Telfer. Hav alone is an impressive investment case (16% IRR and an increasing gold / copper demand cycle) that I won't be missing out on. Add in our exploration credentials and prospects, then there may well be an additional discovery or two to add to the upside.
Then consider just elephant country (we have prospects elsewhere too!). Here we have a number of explorers all drilling as fast as they can get hold of the cash to try and find another Hav. Maybe someone will, who knows. But one thing is for sure, if/as and when, some of them run out of cash or the ability to raise cash, they will need to divest some ground. There will be good pickings for a well funded miner/explorer to pick up additional asset.
No, wait.... we have just done it! Two promising targets worthy of an RNS in recently acquired ground!
Yup, I'm invested and I'm buying for a good while yet whatever the price. Immensely happy while I can pick up stock at these stupidly undervalued prices.
One very happy Falcon today.
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