Greatland Gold PLC (AIM:GGP, OTC:GRLGF) growth plans find gold prices “very supportive”, notes Berenberg, which has scanned the sector for opportunities.
Analysts at the European bank have run the rule over several London-listed gold stocks, as part of a ‘sensitivity analysis’ in the sector as gold and silver prices have soared - due to continued geopolitical volatility, concerns about global growth rates, and worries over the impact of international trade tariffs.
Gold’s so-called safe haven value against the sharp recent sell-off in the tech sector was another reason cited as being a factor in gold prices running up above $2,900 per ounce (and silver going to $32 an ounce).
Berenberg analyst Richard Hatch highlighted that Greatland shares have “done very well” in the year to date, rising some 38%.
And, he added that marking-to-market sees Berenberg’s estimates lift by some 23%.
Besides the gold price uplift, Greatland is currently navigating its transformation following its deal for the Telfer and Havieron mines, in Australia, which saw what was a small-cap explorer become a fully-fledged and growing gold producer.
Against a backdrop of record-breaking gold prices, Greatland’s transformation is opportunely timed.
Nevertheless, noting the recent share price strength and citing the “technical execution” risks at Havieron mine start-up project, Berenberg currently gives Greatland a ‘hold’ rating and a price target of 9p (current price: c.8.5p).