Canaccord Genuity nudges up target price on Greatland Gold
By Iain Gilbert
Date: Wednesday 22 Jan 2025
(Sharecast News) - Analysts at Canaccord Genuity slightly raised their target price on exploration and development firm Greatland Gold from 17.0p to 19.0p on Tuesday as it updated its model on the stock following its December production figures.
Greatland Gold released its maiden production report since closing the acquisition of the Telfer mine and the 70% of Havieron that it did not already own, with gold production "significantly" beating its expectations of 915 tonnes at 1,189 tonnes. Copper production also beat expectations, as did the firm's closing cash balance of AUD $145.0m (£73.74m).
While Greatland has not yet provided guidance for FY25, Canaccord noted the derisked nature of the mine plan as the company has reported approximately 11.0m tonnes of run of mine stockpiles at 0.71 grams per tonne of gold, in addition to a further 25.0m tonnes of low-grade stockpiles.
The Canadian bank expects Telfer to produce roughly 336,000 ounces of payable production over the initial 15-month mine plan as lower-grade material moderates the strong run rate seen in December 2024.
"The report should allay most fears around the ramp-up of the plant (which we estimate is operating ahead of plan at 54 ktpd v 48 ktpd in the technical report) and affirm that the balance sheet remains in a strong position. We estimate that GGP trades at 0.32x (peer avg 0.7-0.8x), and we continue to see this period as an attractive entry point ahead of the potentially catalyst-rich calendar in CY25," said Canaccord, which has a 'speculative buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com
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