Greatland Gold (LON: GGP) shares are down 12% on another of their boring and not very interesting reports about Havieron. The base problem here is that there’s a large speculative investor base. Sure, we’re all going to get rich when the gold mine starts, right? And as far as we know, yes, Havieron is a decent gold deposit that will get developed at a profit. We’re not wholly sure of this as yet but it looks good at this stage. But this stage takes a long time - that’s what the problem is, Which is why we do get this series of announcements from GGP which tend not to really say all that much. Got to keep throwing that informational red meat to the speculators. Except given this stage of development it’s actually, informationally, pretty thin gruel.
The announcement itself: “Decline development at Havieron now exceeds 2,030 metres (as at 8 October 2023). There are 770 metres of development remaining before the decline reaches the base of the Permian cover and top of the Havieron orebody. The decline is now approaching the lower confined aquifer (LCA), with approximately 280 metres of development remaining before it is intersected.” and so on with details about how well it's going pumping the water out and so on. This could even be a useful information release but it’s the sort of thing of interest to mining engineers and few others.
Greatland Gold share price from Google Finance
As we’ve noted before about GGP shares: “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.”
This is really it too, as we’ve repeatedly said. Greatland isn’t actually doing very much. Therefore it keeps telling us about everything that is being done. GGP is really a passive participant in this whole Havieron process. Which is why they keep telling us of all the activity.
