Is the Greatland Gold (GGP) share price an opportunity not to be missed?

The Greatland Gold (GGP) share price has performed poorly in 2021, after an incredible 2020. But does this make it a good time for me to buy this miner?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Greatland Gold (LSE: GGP) was one of the standout performers in 2020, rising 1,800% over the year. But 2021 has been far less favourable for this AIM-listed gold-miner, and the share price has halved in value. This is partly due to the falling price of gold, which has prompted some investors to bank profits. But the potential of the stock is strong, and as such, will the GGP share price be able to rise over the next few years?

Drilling results

As a brief recap, GGP is still in its exploration stage. This means that mining has not yet commenced, and instead the company is drilling to determine whether its sites are commercially viable. So far, this process is going extremely well.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Indeed, in the flagship project at Havieron, where GGP has a joint venture with Newcrest, there are signs that the company is sitting on a lot of gold. In fact, current estimates suggest that there is as much as 4.2m ounces of gold at Havieron, equivalent to around £5.6bn at the current price of gold. This has led to GGP CEO Shaun Day describing the opportunity as “tremendous”. Accordingly, I’m confident that a decision will be made to mine soon, and this will hopefully see the GGP share price soar.

But there are other projects alongside Havieron that are showing promise. An example is the Juri Joint Venture, once again with Newcrest. The company recently reported gold mineralisation in the area, which means there is hope that this could also become commercially viable. The same can be said for the 100% owned project at Scallywag, where the company has just commenced drilling.

Risks

Because GGP is pre-revenue, the risks are also abundant. Indeed, without funding from established gold-miner Newcrest, GGP may find itself unable to finance the projects. This could lead to the company running out of cash and leaving shareholders with nothing.

Further, there is always the chance that the miner decides not to start digging at Havieron. Although I don’t personally believe that this would happen, it would have a devastating effect on the GGP share price if it did. This is because the share price rise last year, was largely due to the expected success of this project.

Finally, the GGP share price is heavily dependent on the price of gold, which has recently fallen back from over $2,000 per ounce to $1,800. This does not bode well for the company, and further downward pressure will likely dampen shareholder optimism in it.

What’s next for the GGP share price?

Despite these risks, I believe that GGP holds too much potential for me to ignore completely. The Havieron deposit looks like a world-beating asset and will hopefully pay off at some point in the future. This is why the miner makes up a small part of my portfolio. For now, I’m just accepting that there will be a lot of volatility and it may drift lower in the short term.

Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices

Make no mistake… inflation is coming.

Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing.

Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question.

That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation…

…because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not!

Best of all, we’re giving this report away completely FREE today!

Simply click here, enter your email address, and we’ll send it to you right away.

Stuart Blair owns shares in Greatland Gold. 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.

More on Investing Articles

Satellite on planet background
Investing Articles

£3.3bn raid sends the Vodafone share price up. Here’s what I’d do

The Vodafone (LON:VOD) share price opened higher on Monday, as news of a big buy from a major investor was…

Read more »

Happy woman with excess weight smiling and dancing alone in sports clothes
Investing Articles

Top British growth stocks for May

We asked our freelance writers to share the top growth stocks they’d buy in May, which included miners and musical…

Read more »

Electric cars charging at a charging station
Investing Articles

A cheap UK share I’d buy for the electric vehicle revolution

This cheap UK share has collapsed in value since I bought last year. But here's why I'm thinking of buying…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

3 distressed stocks with huge potential that I’m considering for my portfolio!

These three distressed stocks have performed badly in 2022, but that doesn't mean they won't recover. Here's why I'm considering…

Read more »

Luxury inside of NIO car
Investing Articles

Here’s why I’ve just bought NIO shares!

I've recently bought NIO shares, despite the stock being down nearly 80% over the past year. Here's why!

Read more »

Mature people enjoying time together during road trip
Investing Articles

Is now the time to buy Tesla shares?

Tesla's share price has fallen in 2022 and so has its valuation. Edward Sheldon looks at whether this is a…

Read more »

A graph made of neon tubes in a room
Investing Articles

Are Woodbois shares worth me buying at 4.7p?

Jon Smith considers the recent surge in price for Woodbois shares, and wonders if the move lower last week represents…

Read more »

Shot of a senior man drinking coffee and looking thoughtfully out of a window
Investing Articles

How I’d generate a passive income for life with just £20 a week

Dividend shares can be an excellent way to earn a passive income for life. Our writer discusses a plan to…

Read more »