The Greatland Gold stock (GGP) has been trading in bearish territory for the last several months, experiencing a slow downfall. GGP share price live is 7 GBX, down by 1.96% for the day.

However, the company’s market cap hit a substantial 353.83 million. It is listed on prominent stock exchanges, such as FTSE AIM 100 and FTSE AIM All-Share indices. Currently, the shares are available on the London Stock Exchange.

Furthermore, Greatland Gold belongs to the precious metals sector. It deals with gold, nickel, copper, and other metals. In 2023, the share price fluctuated in the range of 5.96. It also skyrocketed to 11.50 at one point before dropping to the low of 5.54.

GGP share price today is closer to its low point due to the extended bearish sentiment. But why is the stock declining, and what is the analysts’ forecast? Should you buy GGP now or sell and say good riddance?

About Greatland Gold: The Core of The Company

Greatland Gold Plc is a London-based mining company. Founded in 2005, it explores various mineral resources and then mines them. The company focuses on gold and has mines in Australia.

Moreover, advanced geological exploration and strategic partnerships enable this firm to succeed. Greatland Gold boasts a good portfolio of prospective sites and has created a solid reputation, cementing its position as one of the major gold mining companies in the United Kingdom.

Compared to its rivals, the GGP stock is doing well. According to the reports, it was fourth among the best performers on the AIM 100 since May 2024. The company gained two new licenses, and Havieron, a gold and copper project, gave it enough boost to show up so high on this list.

However, there’s a drawback – Greatland Gold hasn’t sold any metals from this mining site yet. And there’s no announcement about when this might change. That contributed to the stock’s decline after its sudden rise in May.

Still, the company’s market capitalization is soaring; it’s almost eight times higher than the stock’s book value. Greatland Gold has gained support from banks and will provide debt funding of A$220 million if needed.

Meanwhile, the management stated that it estimates Havieron’s gold supply to reach 8.4Moz AuEq (million ounces of gold equivalent). If that proves true, the company could get £15.4bn revenue from the sales, as the price of one ounce of gold is £1,834.

The problem is mining is an expensive and time-consuming process, and the firm will have serious expenses to get all of this gold out of the ground. It currently estimates £760 as the cost of production for an ounce, leaving the income at £9bn.

GGP/GBX 5-Day Chart

Will the Company Really Get This Revenue?

Here’s the catch: while Havieron boasts substantial precious metal resources, Greatland Gold has only acquired a 30% stake in the mine. Its partner is Newmont Corporation, and if the latter decides to sell its shares, GGP has the right to buy, but it’s not happening yet.

In addition, the 8.4Moz figure is debatable, and other resources claim that 6.3Moz AuEq is more possible. GGP’s share is only 1.89Moz. Thus, its potential lifetime income from this project will be only £2.03bn.

Investors should also consider that the company will need years to generate this amount, and with inflation to add, it only leaves £997 million in future cash flows.

Still, that is not a trifling figure. Based on these calculations, analysts think that the current GGP stock price is undervalued by 62%. That means current investors are losing money, and it’s unclear when they will generate profits from this stock. Yes, it has the potential to achieve more, but will it happen quickly, or will they have to wait for years?

Commodities prices are known for their volatility, and it’s difficult to say how much time the company will need to regroup its losses, especially until it starts selling the gold from its new mine.

On a positive note, Greatland Gold recently announced that it made good progress in the project’s development during the June quarter of 2024. On June 31, 2024, the company announced its plans to start an extensive exploration program next year.

Moreover, Dean Horton became chief financial officer on July 1st, 2024. He has over 25 years of experience working in the resource and energy sectors.

The Paterson South project, taking place in the Paterson province of Western Australia, the Scallywag project, and the Ernest Giles project will also bolster the company’s profits. The team aims to extend its exploration and development in various projects to achieve more success.

What About the GGP Share Price Forecast?

According to the GGP share price news, the stock might recover some of its losses in the coming months. It depends on the company’s developments, but analysts estimated the average GGP share price target as £16. That means a 128.57% increase from the current price.

Furthermore, the high estimate is £20, and the low is £12, but in all cases, the forecast is positive, showing at least a 71.4% increase for the year 2025.