Greatland Gold (LON: GGP) is one of those stocks that speculators and traders have had on their lists for several years now. For good reason too - the Havieron gold deposit seems to be a by modern standards large and rich one. Gold mining technology is well known by this date - humans have been doing it for at least 4,000 years after all. So, decent deposit, rich enough ore, known technology. Greatland Gold should be doing well as a stock. It isn't though which is one of those things which puzzles.
One potential answer is that this is just part of the junior miner's cycle. Hopes and dreams of riches to be found drive the price higher. Then the news arrives of what is actually there, prices fall back. Until the next set of dreams and hopes about how the findings are to be mined, financed and so on. There are those who claim there is a regular such cycle in the prices of junior miners. It's certainly possible to find examples of it, but a full statistical test, well, we've at least not seen one of those. And something that might happen, may not, isn't all that useful a trading guide now, is it?
Greatland Gold share price from London Stock Exchange
It's true that any actual revenue from production is still some time off. There can indeed be slips twixt cup and lip in that process. But we would expect even a potential gold miner to do well in a time of rising gold prices. Recent inflation and banking uncertainty have provided that rising Au price but that doesn't seem to have lifted GGP. It's possible that this is just because that potential revenue flow is still so far away that the current gol price isn't seen as much of an influence.
Or, as we say, we could just be in one of those turns of the investment cycle that afflicts junior mining stocks. But there is still this conundrum on the GGP share price. There could be a resource upgrade on the way. The Scallywag drilling results were good but had little impact. There's this consistent flow of what seems to be very reasonable news which fails entirely to boost the share price by any great amount.
Quite why is unknown but finding out is going to be the secret to gaining value from Greatland Gold shares.
