Sprott initiates research on GGP - Shaun Day

[CanisLycaon]

"Sprott has initiated research on GGP. Great to have the highly respected Sprott team on board and a reflection of the growing maturity and interest in GGP - welcome."

https://twitter.com/shaun_day_/status/1 ... bHj_cqAAAA

[Bottle Rocket - Liam]

You can find the report here. (Thanks to Habs)
https://sprott.com/media/5457/220711-gg ... iation.pdf

[Bardz]

Are people reading this its fantastic, predicting revenue and dividends from 23/24 onwards and gold reserve at 9M. Bigging up Sean and Northern Star experience.

Quick Internet search makes this circa 10th biggest world mine and 2nd biggest in Australia.

Given the source this ought to have some significant fund manager peneration to move things along.

[Bottle Rocket - Liam]

So many take aways from it, - another block to make this share stronger

[FuttBucker]

Did I read it right, all sunshine and good news... 17p "buy"?

[Mancity28!]

looks great but struggling to understand if the 17p rating is based solely on current drilling or does it include a reasonable estimate of where we will get to and if so within what timescale ? Would really appreciate any feedback here

[zoros]

Based on aSLOS of 9Moz the valuation of 17p is a bit of a shock, I have to say.
Yes there is further bulk underground mining, but that will be years from now.
The research is very extensive and even SD welcomed it, but this is going to raise many eyebrows especially for those who expected even the lowest broker rating of 22p.
Time to take a deep breath and reassess one’s goals and ambitions, I suspect.
Z

[CanisLycaon]

looks great but struggling to understand if the 17p rating is based solely on current drilling or does it include a reasonable estimate of where we will get to and if so within what timescale ? Would really appreciate any feedback here

Broker & analyst target price ratings are typically for a 12 month period, but that's not certain, unless specifically stated. My best guess is that this one is, IMHO.

[zoros]

This piece of research is probably the deepest dive by any independent party ever undertaken.
It is essential reading for everyone.
The 17p values exactly where SCP expects GGP to be in 2024.
Z

[_J_C_]

This piece of research is probably the deepest dive by any independent party ever undertaken.
It is essential reading for everyone.
The 17p values exactly where SCP expects GGP to be in 2024.
Z

Not so sure the 17p is applicable to 2024; Was that explicitly mentioned regarding a timescale for the price target of 17p? Apologies if I missed it.

[zoros]

This report will put the cat amongst the pigeons!
Has to be the main topic for discussion with SD on Thursday surely?
Z

[zoros]

JC have you read the report?
SCP have extrapolated all the way to a 9Mt/yr operation with 9Moz@ 3.4g/t. They are even suggesting a2nd decline to get this tonnage out. And still they value it at 17p???
I’m very uncomfortable with this, which is why SD’s views would be welcome on Thursday.
Z

[_J_C_]

JC have you read the report?
SCP have extrapolated all the way to a 9Mt/yr operation with 9Moz@ 3.4g/t. They are even suggesting a2nd decline to get this tonnage out. And still they value it at 17p???
I’m very uncomfortable with this, which is why SD’s views would be welcome on Thursday.
Z

Yes I have Zoros.

Perhaps if we knew if the 17p applied to short term, December 2022 or 2024, we would be in a better position? A lack of date for the price target from Sprott, unlike other brokers have provided, leaves ambiguity.

If they had said 40p (solely as an example), it may have looked silly.

[Bottle Rocket - Liam]

Ah, but it doesn't include any bulk tonnage. or anything other than SOLS of the HGZ.

a second decline will take around 13-15Mt a year, (based on Red Chris) - and at that point, we should be seeing plans for block caves. which changes it all again.

Just because it is priced (as you claim) to 2024, doesn't mean this is in stone until then. this is it for now. - and they release another report.

"Inch By Inch, Play by play, till we are finished".

[CK 1974]

I remember at the agm the sp was around 15-17 the question was asked…’is the sp undervalued’ the answer was yes. Very detailed report but I think it’s very conservative, just my opinion but if others feel they have to spread the fear of 17p that’s also up to them

[CanisLycaon]

The 17p values exactly where SCP expects GGP to be in 2024.

Can you please provide any proof of that assertion? I maintain that it's most likely a 12 month price target.

[zoros]

The report tells us what it expects in terms of tonnage after the SLOs has started and with a second decline to increase tonnage.
It stipulates 9MozAu.
Even taking this into consideration it still values it at !7p
What further proof do you need?
Z

[Bottle Rocket - Liam]

AND, - Then there is this image.

Hello, 20p!

The price of Gold affects this 17p business - So unless it's $1850 in 2024.... It will not be 17p based on this data.

[_J_C_]

The report tells us what it expects in terms of tonnage after the SLOs has started and with a second decline to increase tonnage.
It stipulates 9MozAu.
Even taking this into consideration it still values it at !7p
What further proof do you need?
Z

I want to see where it says 17p in 2024, to back up your assertion.

Perhaps Shaun can give his thoughts re the 17p on Thursday.

[CanisLycaon]

The report tells us what it expects in terms of tonnage after the SLOs has started and with a second decline to increase tonnage.
It stipulates 9MozAu.
Even taking this into consideration it still values it at !7p
What further proof do you need?
Z

All mining broker/analyst reports will state values (eg. tonnage, etc.) for the various stages in the mining/production process, over a period of time in the future. However, I've never known one that gives a price target for the END of that period of time, only for the usual 12 months, or other period, if stated.

Maybe someone can find out from Sprott for sure?