The main catalyst for Greatland Gold PLC (AIM:GGP, OTC:GRLGF) shares in the short term is the valuation of the 5% option over the Havieron project recently exercised by partner Newcrest, says broker Berenberg.
This option will lift Newcrest’s total holding in Havieron from 70% to 75% with the exercise process to be agreed upon by mid-February 2022.
Berenberg sees determination of the option price going to an independent expert and once the fair value has been set, Newcrest then has 30 days to acquire the additional 5% interest.
“We view this as a key moment for Greatland as it will make clear how Newcrest is valuing the entire project, not just the small portion of it included in the initial pre-feasibility study.
“We attribute a value of US$228mln to the 5% share in Havieron; 4.3p/share," with a price target for Greatland of 24p.
Bereneberg's comments followed the latest drilling update at Havieron from Newcrest.