Key points:
- Greatland Gold needs to explain an announcement by Newcrest
- That announcement is, Greatland points out, based on old information
- We should be taking the new information as the state of play
- Greatland Gold Stock Forecast
Greatland Gold (LON: GGP) has released a note to the London Stock Market trying to make what it insists is an important point. They could well be right that it’s important too. The reason why it is important for Greatland sits at the very heart of how junior miners work in an economic sense.
The point that Greatland is making is that Newcrest has released its annual report on reports and reserves to the Australian (ASX) market. As Greatland and Newcrest are working side by side and rather together on much the same mineral deposit what Newcrest says reflects upon Greatland. So, for example, if Newcrest says reserves are this, then that gives an indication that Greatland reserves must be thus.
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The problem, such as it is, is that the Newcrest announced results seem to jar with what we think we know about Greatland. Which isn’t a state of affairs that anyone would or should be happy with. Greatland Gold then goes on to point out that the Newcrest announcement regarding Havieron has an information cut-off point of 12 Oct 2021. There have been Greatland information releases since then. Further, that 12 Oct point relies upon drilling information only up to 5 Feb 2021. Over a year ago – there has been more from Greatland in that timespan.
So, the information that is relevant to Greatland is that announced by Greatland since those cut-off points, we should not be assuming implications from the Newcrest data statement.
This all sounds a bit nitpicky but it is at the heart of how junior miners work. The entire development process runs first, think of something to look for, where. The next stage is, having found something potentially viable, to check and whether it actually is viable. Third, prove that properly, then actually go mining. Failure at any stage is to be avoided, hopefully.
Greatland Gold is at that second stage. They’ve got interesting mineralisation, they’ve got the rights to it if it all pans out. The work being done at the moment is to check not just that there’s some gold there, but that there’s enough to make mining an economic proposition. We are somewhere in that area of checking and proving that is.
Thus the importance of correcting any misunderstandings about the Newcrest announcement. For if Newcrest is basing its report on information a year behind the actual work schedule then that ignores the effects of that year of work on testing and proving. But the value of Greatland Gold does depend upon the results of that extra year of testing and proving. That’s just how valuations of miners before production starts are done.
The lesson being that it is announcements – of up-to-date data, of new information – that should be moving the Greatland Gold price.