Greatland Gold (GGP) – What has Metal Tiger bought?

Greatland Gold (GGP) – What has Metal Tiger bought?

I’ve been a long-term shareholder at Metal Tiger (MTR). It has a number of attractive assets but this week’s announcement that it had bought into Greatland Gold (GGP) was from my perspective disappointing and as such I have sold the shares.

Perhaps I’ve been unfair.

Metal Tiger paid 1.72 pence per share valuing GGP at £55 million pounds.

(Source: Google)

Let’s use my normal investing checklist to see where value could lie in GGP.

A strong board of directors – not exactly

The Board of Directors looks entirely reasonable, save for the Chairman, Alex Borrelli. Mr. Borelli is a chartered accountant who has many years of experience in investment banking. Unfortunately, his recent record is less than stellar. Notable actions in the past include:

  1. Borrelli launched an all shares bid for MTR from BMR Group (BMR) whilst CEO of both, at a price lower than MTR’s, which trashed MTR’s share price (link).
  2. Borrelli sold Jubilee Minerals (JLP) a stake in a BMR project whilst failing to disclose that the Zambian government might remove the project’s mining right (link).
  3. BMR was kicked off AIM (link).
Valuation – multiples of NAV

GGP had net assets of £4.3 million for the year ended 30th June 2018. They subsequently raised another £2.65 million. Assuming some cash burn, MTR is valuing GGP at about 1000% above NAV.

JORC resources – none

GGP has a JORC page on its website. The drill results are JORC compliant but a quick scan of the links show no JORC resources.

Feasibility or scoping studies – none

GGP has no feasibility or scoping studies and unless I missed an RNS it is also not in the process of completing any.


As an exploration company, GGP generates no cash and is reliant upon the market to continue as a going concern, if it runs out of cash…

Cash – something it does have!

GGP has cash. It raised £2.65 million at 1.25p in July and stated that its cash balance was approximately £6 million.

Exciting drill intercepts – insert rocket emoji’s!

GGP has released exciting drill intercepts recently, coinciding with the most recent uptick in shares.

Gervaise Heddle, Chief Executive Officer, commented:

“We  are  thrilled  by  these  truly  spectacular results  which  further  demonstrate  the  exceptional  potential  of  Havieron.  These stunning results represent a world class intersection as measured by total mineralisation in one drill hole in excess of 1,500 metre grams gold equivalent. Elevated gold and copper results persisted to end of hole suggesting the mineralisation continues at depth below the current limit of drilling, which is supported by the results from forward modelling of detailed geophysical data.”

See the full announcement (PDF).

To be fair to GGP, a “Total combined intercept of 275m at 4.77g/t gold and 0.61% copper” is an excellent result and were this result to be repeated, it may have something special. My issue is that a valuation of £55 million is rather high even if the shares are about to rocket – to infinity and beyond!

Since I started writing this article, GGP has released a speculative RNS with no drill results. One market commentator suggested that the NOMAD and GGP could be in breach of AIM regulations.

Land Bank

GGP has a land bank of over 2000 sq km. It has promised drill results but all exploration is early stage.

A link to MTR

MTR used to hold a notifiable stake and MTR CEO Michael McNeilly was a director until about a year ago.

Given all of the above, I can’t understand why MTR has bought GGP unless it knows something I don’t. As such, I believe GGP to be significantly overvalued.

Resource companies that have more compelling valuations than GGP:
  • Asiamet Resources (copper), Market Cap £42 million

Asiamet have backing from institutional investors like JP Morgan have JORC resources and a preliminary economic assessment (link).

  • Eurasia Mining (platinum group metals), market cap £16 million

Eurasia have been awarded a mining license and have an engineering, procurement, construction and financing deal for their 2 million ounce platinum group metals project in Russia (link).

  • Horizonte Minerals (nickel), market cap £28 million

Horizonte completed a feasibility study, directors have been buying shares on market and have £8 million in cash and tier one nickel projects (link). The projects are not particularly attractive at current Nickel prices but are finance ready should prices increase as forecasts suggest.

  • Mkango Resources (rare earth elements), market cap £10 million

Mkango recently announced its highest ever drill intercepts and upon resource upgrade will receive £7 million to complete a bankable feasibility study. I covered Mkango here .


Disclosure: at the time of publication, the author holds a long position in Eurasia Mining and Mkango Resources.



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    Artemis,(are;asx) I think is also an interesting comparison here. £46.4m. Oz focussed. $5.4m funding secured this week (cln from riverfort, yikes) for Paterson drilling. $12m cash end sept, but a high burn rate, $14m last quarter.

    You also get the novo hype, they have a processing plant at radio hill, so at least there is something on the balance sheet.

    Lenigas, you can’t deny, does tend to bang the drum loudest when it comes to this. Sp since the novo hype and their cobalt ramp shows the effect of dilution on these companies as the projects progress. Will gervaise and Co get used to a similar lifestyle?

    I hold neither ggp or arv

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