PINL:GRLGF - Post by User
Post by Margin321on Apr 18, 2025 2:36pm
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Post# 36544249
Still undervalued
Still undervalued
Just watch how this plays out. The "new Greatland" company really only started on December 4, 2024. Before that they had held on to 30% of their prized Haveiron project (their discovery) and had a right of first refusal if Newcrest, who had earned 70% and was developing it to feed their huge Telfer processing plant as the Telfer mine was winding down. Over $500 million has been spent on development and it is about half done and will br producing (high grade) 2027 or 2028. But on December 4 the whole thing flipped in a remarkable way.
The reconfigured Greatland as of that date got back 100% of the Havieron project (a jewel), but also improbably became the new owner of all of the Telfer mine and mill. And took over operating everything. And had zero debt and cash in the back. Newmont (who had purchased Newcrest) got 20% of Greatland shares. And cash (from a prior Greatland raise) and some imputed cash ($100 million over 5 years linked to gold price). What has happened since? Successful operations. Huge free cash flow! Major additions to reserves and mine life with expanded exploration at Telfer. Ability to pay off $100 million to Newmont in months not years. The story is 4 months old. There could be books written about this.
They went from preprocduction junior with first gold planned in 2028 - to a mid-tier operator with Q1 performance (in $US) including 90,000 ounces of gold production, revenues of $289 million, free cash flow of $160 million, with no debt and $250 million is cash. Sort of a miracle of sorts.