The Greatland Gold (LON: GGP) (OTCPK: GRLGF) share price is pretty much unchanged - just statistical variance - on the news that it has disposed of the Tasmanian gold assets. This sounds about right to us, those Tasman assets weren't worth much within GGP and Greatland has kept ahold of some of the potential upside anyway. The real point here being that those Tasmanian assets just weren't material to a group of Greatland's size.
The announcement: “Greatland Gold plc (AIM:GGP) (Greatland or the Company) is pleased to announce that the divestment of its Firetower and Warrentinna tenements (the Tasmanian Tenements) will formally complete on or around 9 June 2023 following the Flynn Gold's Option exercise (as defined below).” Well, OK. But think about the size of Greatland. A market capitalisation of some £400 million or so. The option payment for these tenements was $100,000 - and that's in AUD, not real dollars. There could be up to another $1 million to be paid it - and only if - half a million ounces of gold is found there. Then there's a 1% royalty if anything ever goes into production.
For a company Greatland's size this is not really even a material transaction. Sure, it's got to be reported but, well, the importance of it is pretty small.
Greatland Gold share price from London Stock Exchange
There's really only one thing that's going to move the Greatland Gold share price significantly in any direction. That's progress at the Havieron site. That's also something not under the control of Greatland management. It's Newcrest which is doing the farm-in there and they've not reached the stage of a definitive feasibility study yet. Also, Newcrest is just being taken over by Newmont, so we might not expect as much attention as we might hope to that operation either.
Th reality is that Greatland is in this odd interregnum. They've got to the stage that yes, Havieron is obviously a very decent prospect. But it's still not proven, absolutely, as an economic project. And it's certainly not proven to the level of starting to actually build a mine and install equipment.
Given the centrality of the Havieron valuation to that of Greatland itself it would be odd, unusual even, for other events to greatly change that share price or market capitalisation. Just one of those things, when a mine prospecting company actually finds a decent prospect that becomes the central valuation point for the whole company. What happens to the other prospects - like the Tasman ones - becomes one of those things that doesn't matter very much.
Absent something truly extraordinary Greatland will move when Havieron does and not before.
