GGP seems to have struck gold at the Patterson project and it's sitting on the surface. Seems to be "obviously prospective" according to the reports.
Thanks Sirfrank.
About the Author
Sirfrank
15 comments
donald pond
i had a punt at lunchtime and am currently sitting pretty. The main thing for me is when I look at many miners they are in cold or wet places where the ground is frozen or flooded, where there is political risk, and the yields are often measly (sometimes under 1g/tonne). The fact that the gold here is visible and it is in Australia means that surely this must be a potentially very attractive project. You would never bet the house on it, but there appears lots of potential upside. Today's RNS indicated this is just the first few days of exploration so likely there will be many more updates.
There's gold in them thar hills!
JakNife
I would caution against irrational exuberance with GGP, this is not the first time that the management have "hit it big", only for the project to fall over and be confined to silent oblivion. The last one was its Ernest Giles project, which attracted lots of interest and prompted frequent RNSs pushing the share price up to a peak of c 2.5p in October last year only for its partner to lose interest in the project and the share price to crater down to 0.5p.
At the moment they are exploring in the Paterson region, an area that is well-known for its near-surface gold mineralisation. It was pretty much a foregone conclusion that it would find some gold, as has been frequently found in that area. But it's never large enough to be commercial.
At 2.04p (share price at pixel), the market cap is £62m. On the other hand its last accounts revealed net cash at 31 Dec 2017 of £4.5m.
An alternative comparison would be a gold miner with good repute: Caledonia Mining (CMCL). It has a market cap of £69m is generating strong cash flow from its Zimbabwe operations and is paying a 3.4% dividend.
I fear that GGP is simply the "ramp de jour" - AVOID!
JakNife
donald pond
Well, I actually bottled last week and sold at 1.55 for a 40% gain, which could have been a lot more. But it now has a market cap ahead of AAZ, which is a proven miner digging out 80,000 oz p.a. without debt and with huge infrastructure to gear up. Small miners always seem to oscillate between being flavour of the month on crazy multiples or utterly forgotten and dirt cheap.
willhampson
Yes, this really is one of those examples of the craziness of the AIM machine. How this can be awarded a higher market cap than a proven producer like Anglo Asian Mining (LON:AAZ) and nearly half that of something like Hummingbird Resources (LON:HUM), really boggles the mind. That being said, well done to those that have profited on the rise!
willahr1975
This share is raging. Bought at 2p. Other discussion boughts awash with chat on this share. Company has some supposedly exciting prospects and news on drilling results are imminent. Anyone got any views?
.JPG)
The Amateur Investor
Are you still in. Been watching from 5p, as I frankly dont really understand geological reports, I refrained from speculatively investing. I obviously in hindsight I should have taken a small dive in..
Nigel1972
I took a punt on these shares when they were 0.6p. I sold some at a later date to take my investment out. Currently sitting on 'free shares' with a healthy profit to take, however if the price of gold keeps going up, I reckon GGP will also gain further. Time will tell I guess
Snowbum
Meant to add they state in a recent RNS approx 90% of their value is from GGP but its trading with a heavy discount to the NAV.
