Is Greatland Gold the bargain you need to buy today?

first_imgIs Greatland Gold the bargain you need to buy today? Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Rupert Hargreaves | Sunday, 14th June, 2020 | More on: GGP Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. Greatland Gold (LSE: GGP) has been one of the best-performing stocks on the London market over the past few months. Investor sentiment towards the small-cap mining company has exploded following a series of positive updates from the business. A renewed interest in gold among investors has also lead to improving sentiment towards Greatland Gold. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Could be just the start of a much broader rally for the stock as the company continues to push ahead with the development of its flagship mining prospect?Is Greatland Gold undervalued?Greatland Gold owns a handful of mining projects across Australia. The most promising of these appears to be the Patterson Project. This is made up of the Havieron, Black Hills, and Paterson Range East exploration licences in Western Australia.Here, Greatland Gold has partnered with the Australian gold mining giant Newcrest Mining. The $25bn corporation is one of the largest and most experienced gold mining companies in the world. In the first quarter of this year alone, the group produced 519,000 ounces of gold.Newcrest has a farm-in agreement with Greatland Gold at Havieron. It has agreed to help explore and develop the prospect and, in return, a 70% interest in the blocks by spending $65m. So far, the company’s initial exploration activities have been extremely positive. Earlier this week, Greatland Gold published the eighth consecutive set of “truly spectacular” results from Newcrest’s drilling campaign.This string of positive updates puts the mining partnership on track to deliver its first output from the prospect in the second half of 2020. Full production is targeted within two to three years. City analysts have estimated there could be as much as 5.5m ounces of gold at Havieron.Plenty of work to doWhile it looks as if Greatland Gold is making all the right noises, there’s still a lot of work to be done between now and first production. What’s more, small-cap gold miners are notorious for running out of money before they start producing. There’s always going to be a risk in the background that Greatland could succumb to this fate. However, the fact the company has such a large, experienced and deep-pocketed backer is highly encouraging. It removes a lot of the risks involved with investing here.Indeed, considering the quality of the Havieron asset, if Greatland Gold does begin to struggle, Newcrest might decide to buy the whole company.The stock could also have tremendous upside potential if it manages to progress to production. If there are 5.5m ounces of gold at Havieron, this could mean the business is sitting on £7.7bn gold, based on current prices. By comparison, the company’s market capitalisation is only £500m. While there’s no guarantee it will ever be able to generate this kind of income, these ballpark figures suggest the risk-reward ratio of investing in Greatland Gold, as part of a diversified portfolio, seems attractive.center_img “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. See all posts by Rupert Hargreaves Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shareslast_img

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