Greatland Gold (LON: GGP) shares are up 6% Thursday. GGP shares have risen on yet another information release from the company. Now, this is one of those pieces of information that GGP should release - they’ve increased their borrowing capacity. But it’s also true that we’re all getting rather bored of constant information releases and not much action. This is partly just because the company is at that stage of the mining process. But also because it’s a passive participant - it’s Newcrest actually running Havieron. Newcrest, of course, being a little preoccupied in being taken over by Newmont.
The announcement Thursday: “Greatland is pleased to announce that it has entered into a A$50 million (approx. £26 million) unsecured standby debt facility (Facility) with cornerstone shareholder Wyloo Consolidated Investments Pty Ltd (Wyloo). Wyloo currently holds approximately 8.5% of Greatland shares.” OK, and super, and yes one of those things that should be announced. But it does just add to that string of announcements that don’t seem to advance the cause very much.
As we’ve said about Greatland before: “Greatland Gold (LON: GGP) (OTCPK: GRLGF) shares are up just shy of 2% - so, essentially unchanged given the spread - today on the release of an update on Havieron. Yes, that's yet another update on Havieron there. We get so much news about the gold project and yet so little seems to happen to the GGP share price. The reason for this being that while we do get that constant floor of news none of the news is really all that important. The information we actually desire is when are they going to start mining that pile of gold? The answer being that there's considerable time to pass yet before that decision is made. In fact, considerable work to be done before that decision can be made. Greatland and Havieron is thus an ongoing story. “ It’s just the stage that Havieron is at.
Greatland Gold share price from Google Finance.
As we’ve had to point out about GGP: “GGP shares just never do seem to soar quite as we’d expect. For there really is a gold mine there. There’s gold in that gold mine too. There’s considerable retail interest in the shares, lots of people both trading and holding. But that Greatland share price just never does take off like people think something sitting on a pot of gold should do.” And as Greatland keep saying: ““The approach taken by Grant Samuel is to assess Newcrest's interest in Havieron (70%) on an aggregated basis with Newcrest's interest in Telfer (100%). Accordingly, Havieron has not been separately valued. The combined valuation therefore includes significant closure costs and other liabilities associated with Telfer (which Greatland has no exposure to). Additionally, because Newcrest did not complete its own planned update to the Havieron Mineral Resource Estimate (MRE) in August 2023, the Grant Samuel assessment is based on Newcrest's August 2022 MRE update, which only incorporated drilling results up to November 2021.””
All of the valuations of Havieron are filtered through what Newcrest is reporting and doing. GGP is a passive investor at this point. Which is why for all the reports there’s not much price movement. Because none of the reports are from Newcrest about Havieron.