Greatland Gold Reports Strong Start as Gold-Copper Producer Following Telfer-Havieron Acquisition
Why we think this is good
The half-year results demonstrate a significant positive transformation for Greatland Gold. The company has successfully transitioned from an explorer to a producer, reporting a profit of £18.0 million compared to a loss in the previous year. The acquisition of Telfer and consolidation of Havieron ownership provide immediate revenue generation and strong growth potential. With a robust cash position of £71.9 million, nil debt, and new credit facilities, Greatland is well-positioned to fund future development. While there are execution risks associated with Havieron's development, the overall outlook appears positive, supported by strong initial production figures from Telfer and progress on the Havieron feasibility study.
Key Points
- Completed acquisition of 100% ownership of Havieron and Telfer
- Reported £18.0 million profit for the half-year
- Generated £8.3 million revenue in 27 days of Telfer ownership
- Produced 29,864oz of gold and 1,189t of copper at Telfer
- Cash position increased to £71.9 million with nil debt
- Havieron Feasibility Study targeted for completion in H2 2025
- Telfer mine life extension opportunities being evaluated
- ASX cross-listing planned for June 2025 quarter
Summary
Greatland Gold's half-year results mark a transformative period for the company, transitioning from explorer to producer. Key highlights include:
- £18.0 million profit for the half-year, a significant improvement from the previous year's loss
- £8.3 million revenue from 27 days of Telfer ownership
- Strong cash position of £71.9 million with nil debt
- Successful integration of Telfer operations and progress on Havieron development
- Positive outlook with potential for near-term cash flow and medium-term growth
The company's focus is now on optimizing Telfer operations, advancing the Havieron feasibility study, and exploring opportunities to extend Telfer's mine life. Broker targets suggest significant upside potential, with price targets ranging from 12.00p to 20.00p, well above the current share price of 8.44p.