Greatland Gold (LON:GGP) have seen an impressive few weeks of trading, and their shares have consistently stayed in green.
Shares in Greatland Gold trade at 3.9p (-2.50%). 17/2/20 11:24BST.
Greatland have seen a 52 week change of 130.55% in their share price, which has reflected a strong period of trading combined with a feeling of shareholder optimism.
The 52 weeks share price high has been noted at 5.89p whilst lows have been recorded off 1.47p.
The 50 day moving average stands at 2.86p and the 200 day moving average is slightly lower at 2p.
The question that many shareholders and investors are wondering, is whether Greatland can hit the 5p mark and break their own expectations.
Greatland’s recent updates
The firm in December reported that it had made progress in Australia, where the majority of its operations lie.
The results “significantly” extend the zones of existing high-grade mineralisation at the licence, Greatland said, to the north. In one hole, it found 107 metres at 2.2 grams of gold per tonne of ore, including 21 metres at 10 grams.
Following this, Newcrest Mining Ltd (ASX:NCM), which carried out the work at Havieron, has finished a $10 million first stage of a farm-in agreement, and a second stage also worth $10 million of expenditure has now begun.
A few weeks on, the firm reported mineralization at another site in Tasmania.
The firm said that further drilling at its wholly owned Firetower project in Tasmania confirmed the presence of additional broad widths of shallow gold mineralization.
Greatland added that it completed a systematic grid-based drilling programme at Firetower, comprising 14 diamond holes with depths from 50 metres to 160 metres, for a total of approximately 1,530 metres.
The program was designed to test the main zone of gold mineralization and results to date have confirmed broad widths of gold mineralization.
Gervaise Heddle, chief executive officer, said: “We are pleased to report a second set of positive results from our recent drilling campaign at Firetower. They show a further improvement in the continuity between drill sections and highlight the potential for a robust, near-surface gold system.”
Primorus Investments hail Greatland
Last week, Primorus Investments (LON:PRIM) praised Greatland Gold as one of their drivers of success in their final quarter of 2019.
Primorus told the market that they had invested £625,000 into Greatland Gold, and this initial investment has now trebled to be valued at £1.9 million following a string of success for the gold miner.
The potential profit from its investment in Greatland stands at £1.3 million, and Primorus tips the investee’s share price to rise even further.
The appraisal certainly would have won shareholder confidence, and this would have given Greatland more confidence to deliver consistent results across 2020.
Price of Gold still rising?
One thing that could allow Greatland to break their expectations is the price of gold which has seen a recent bounce back over the last few months.
The price of gold is still climbing across global markets, and hovers around the $1,583.30 mark per ounce.
Researchers have said that prices of gold are yet to reach a prime phase of its price consolidation, however analysts and traders are expecting this to be in the near future.
One thing is for sure, gold prices will need some time before the market does see a surge.
However for Greatland, the future looks very bright and certainly following a strong run of results there can be high optimism for the firm to breach the 5p mark.
On 3/2/20 Numis Recommended a ‘Buy’ stance for Greatland Gold, with a target price of 6p.