Greatland Gold PLC‘s CEO, Shaun Day, shares an update on the company’s ongoing three-year construction program at Havieron in Western Australia, which is in its second year. The mining project has reached an impressive depth of over 1,700 metres with more than 300,000 metres of exploration and development drilling accomplished.
Day proudly highlights the company’s record-breaking advancements in the last three quarters. He adds that most of the surface infrastructure is established and anticipates reaching the top of the ore body by the end of June 2024.
Despite changes in ownership at Havieron with Newmont, the world’s largest gold miner, taking over from Australia’s Newcrest, Day remains confident it won’t impact ongoing operations. He reassures that the relationship with Newcrest remains solid and the Havieron ore will still be processed through the Newcrest-Newmont Telfer mill.
Newmont’s acquisition of Newcrest is seen as a vote of confidence in Havieron, validating its status as a world-class asset. This endorsement boosts the project’s credibility significantly. Despite its historic lack of visibility within the Australian mining scene, Havieron’s transformative discovery turned Greatland into a billion-dollar company at one point.
Today, Greatland’s market capitalisation stands at under £350 million, inviting speculations about its undervalued status. Day is confident about the company’s value proposition and is actively seeking opportunities to share its story more broadly, a key part of which is a new listing in Australia slated for September 2023 quarter
He believes this listing is likely to generate a fresh surge in the company’s share price. The listing is not just an opportunity to tap into the world’s fourth-largest investment capital pool but also to attract institutional investors mandated to invest only in Australian-listed companies.
This move aligns well with the rising gold prices and the resilient Australian mining market, making it an opportune moment to offer a local asset with the potential to become one of the world’s largest gold mines to the domestic market.
In line with the Lassonde Curve, a model illustrating the fluctuating investor interest during a company’s development cycle, Greatland might be on the rise, with about a year away from production. This, coupled with the upcoming Australian listing, the steady positive newsflow from Havieron, and robust gold prices, could potentially trigger an upswing in Greatland’s valuation as a fully-fledged producer.
While Havieron remains a prominent asset, Greatland’s portfolio extends to a range of exploration sites on the Paterson Range, partnered with industry heavyweight, Rio Tinto. Day envisions considerable potential in these sites and asserts that Greatland possesses sufficient resources for development at Havieron and substantial exploration work in the wider Paterson portfolio.
Underlining the company’s primary focus on the imminent cashflow from Havieron, Day anticipates prioritising growth and debt reduction. He also hints at the likelihood of dividends, suggesting a clear strategic direction for Greatland that is anticipated to yield intriguing developments.
As the company moves forward, Greatland Gold PLC, under Shaun Day’s leadership, continues to showcase its expertise in exploration, particularly in the Paterson Range. By consistently highlighting its unique position as a specialist in the region, Greatland has a strong footing in a part of the world that’s yielding significant gold and copper-gold discoveries.
The company’s path is marked by continuous exploration and development on multiple fronts, and the diversified nature of its portfolio provides a buffer against potential setbacks. The successful partnership with mining industry giants such as Rio Tinto and Newmont only cements Greatland’s reputation further.
Indeed, the upcoming listing in Australia is a strategic move, likely to open the floodgates to new investments. Given that some Australian institutional investors are obligated to invest only in domestic companies, the listing will make Greatland accessible to these investors and potentially boost the company’s market value. Furthermore, it allows the Australian public to invest in a local asset, that of the Havieron project, and could potentially herald the start of another surge in Greatland’s share price.
In addition to planning for the future, the company also has its sights set on achieving a solid cash flow from the Havieron project. Day notes that the initial cash flow will be strategically used for company growth and debt reduction. Yet, he also reveals his affinity for dividends, suggesting that rewarding shareholders may also be part of the company’s future financial strategy.
As Greatland Gold PLC continues to forge its path, the journey promises to be an exciting one. With numerous opportunities on the horizon, bolstered by its position in the robust Australian mining market and its strategic alliances, the company’s trajectory is set for potentially rewarding outcomes. This journey, undoubtedly, will be of keen interest to both its current shareholders and potential investors alike.
Under Shaun Day’s watchful eye is set to continue its rapid ascent in the global mining scene, with the lucrative Havieron project playing a key role in its growth narrative. The company’s current focus lies in finalizing the surface infrastructure and tapping into the ore body, marking significant milestones in the three-year construction programme. These actions demonstrate the company’s commitment to maintaining its aggressive development timeline.
As the company steers towards the end of its construction program, the increasing depth of the mining project and the completion of exploration and development drilling stand testament to the company’s capabilities. Day’s optimistic outlook and the company’s perseverance will likely contribute to further achievements in the quarters to come.
Day is not resting on the laurels of the Havieron project, though. The new listing on the Australian market slated for September 2023 is a strategic move set to increase the company’s exposure and drive investor interest, thereby potentially providing a significant boost to Greatland’s share price.
Further to the north, the exploration sites on the Paterson Range, backed by the partnership with industry titan Rio Tinto, offer a second front for potential development. Day sees these sites as a substantial opportunity for growth, and with sufficient resources within the company for significant exploration work, the potential for exciting findings is considerable.
Looking ahead, Day envisions two main areas of focus upon achieving initial cash flow from Havieron. On one hand, a commitment to growth and debt reduction signifies the company’s intention to strengthen its financial standing. On the other hand, Day’s personal preference for dividends indicates that rewarding shareholders could also become a priority in the company’s future plans.
As the journey unfolds, observers can anticipate Greatland’s progress with eager anticipation. With a clear direction, strategic partnerships, and an upcoming listing on the Australian market, the company looks poised to offer potential investors an exciting proposition, while rewarding its current shareholders. As they say in mining, the real treasure is the journey, and Greatland’s path ahead certainly looks golden.
