Greatland Gold Share Price Forecast March 2022 – Time to Buy GGP?
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Shares of the renowned precious and base metals-focused mining development and exploration organization, Greatland Gold Plc (LSE: GGP), are in the green today, after closing at 14.15p on March 3rd (18:30 GMT). The FTSE AIM 100-listed company saw the highest peaks in its share prices in 2020, achieving a nearly 1600% return in a year. There has been a downward trajectory seen in the GGP prices in the last 12 months However, the latest joint venture, Havieron, with Newcrest Mining, has again revoked the possibility of a stronger share price in the near future.
Greatland Gold – Technical Analysis
As per the financial statement from Greatland Gold, the market cap of the development and exploration company is £572.586 million. Whereas a total asset worth £6.65M was in 2020, it was £24M in the year after that.
Moving averages such as Exponential Moving Average (30)(13.81), Simple Moving Average (30)(13.83), Exponential Moving Average (50)(14.11), Simple Moving Average (50)(14.27) are pointing towards a sell action. Oscillators such as the Relative Strength Index (14)(49.52), Stochastic %K (14, 3, 3)(53.77), Commodity Channel Index (20)(30.24), Average Directional Index (14)(13.72), on the other hand, are neutral.
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Recent Developments
The gold and copper-focused mining and development company has recently announced a significant rise in resources owing to the Havieron joint venture in Western Australia. This opportunity results in increasing the total mineral resources, including the ore reserves, by a drastic 53% surge from the previous evaluation to 218,000 tonnes of copper and 5.5 million ounces of gold. With an estimation of holding around 4 mega-ounces of gold or equivalents of the metal, it may be worth nearly £5.7bn, considering £1,428.46 per ounce today.
The company has reported facing a loss of £5.5m in 2021, with no operating income so far. Yet, the underlying opportunities in the Havieron project show high potential for the company in the future. This substantial expansion of the drilling campaign has the potential to deliver greater growth to the mineral resources and ore reserves. The recent update has increased an inclination towards the share. As a result, it facilitated raising funds worth £11.9m in November, and investors may see an upsurge soon in the prices.
Apart from the Havieron project, the company already has another joint venture named Juri that involves a 60-metre wide anomalous zone of copper and gold mineralization. The Juri project, along with the flagship Havieron venture, illustrates the fact that Greatland Gold is at the edge of depositing higher-grade metals. Additionally, the company has also identified further targets for the drilling programme in 2022.
Should You Buy GGP Shares?
With the latest equity issued at 14.5p per share, the excitement among investors is understandable and quite expected. Despite the substantial potential in the announced project, the share price hasn’t been able to maintain its gains as expected. As per experts, this might be the result of the fact that the extraction of the metals is due until 2024. This illustrates why GGP’s share might be a speculative one as of now.
Despite the immense possibilities for the company to expand in the near future, the venture is still in its infancy. This very fact justifies why the GGP share is still yet to achieve its 2020 peaks. But, due to the ongoing pre-revenue phase of the company, the shares are expected to be a speculative share among investors. This will be until the extractions take place.
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