Fancy a punt?

Thursday, Jun 21 2018 by
3

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.

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Greatland Gold plc is a mineral exploration and development company focused on gold in Tasmania and Western Australia. The Company's geographical segments are the United Kingdom and Australia. It has approximately five mineral projects, which include Havieron project, Ernest Giles project, Bromus project, Firetower project and Warrentinna project. The Havieron project covers over 135 square kilometers in the Paterson Region of Western Australia and is located approximately 40 kilometers east of the Telfer gold mine. The Ernest Giles project is located over 250 kilometers north-east of Laverton and covers over 270 square kilometers of unexplored Yilgarn Craton. The Bromus project is located over 25 kilometers south-west of Norseman. The Firetower project is located over 65 kilometers west of Launceston and approximately 35 kilometers south of Devonport in northern Tasmania. The Warrentinna project is located over 60 kilometers North-East of Launceston in North-Eastern Tasmania. more »

LSE Price
1.78p
Change
-1.9%
Mkt Cap (£m)
63.0
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is LON:GGP fundamentally strong or weak? Find out More »


7 Posts on this Thread show/hide all

mmarkkj777 21st Jun '18 1 of 7

Thanks Sirfrank.

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donald pond 21st Jun '18 2 of 7

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!

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sirfrank 2nd Jul '18 3 of 7

I hope you're sticking with it Donald. More good news today and more to come I think.

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JakNife 2nd Jul '18 4 of 7
5

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


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sirfrank 2nd Jul '18 5 of 7

Like someone else said, don't bet the house on it, but then again, nothing ventured etc..

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donald pond 2nd Jul '18 6 of 7
1

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.

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willhampson 2nd Jul '18 7 of 7
1

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!

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