The London miner's $490 million float surged 13% on debut, but the real story lies beneath Western Australia's sandy cover, where Greatland has just cornered Australia's hottest underdeveloped copper-gold frontier.
Greatland Resources (ASX : GGP) stormed onto the ASX like a thunderbolt on Tuesday, rocketing 13% to $7.46 after raising $490 million at $6.60 per share in a debut that validates its ambitious expansion plans.
The dual-listing coup caps a corporate restructuring designed to position the miner for WA's emerging Paterson Province gold rush.
Haveiron the ultimate prize
December's US$475 million acquisition of Newmont's Telfer mine in the region represented far more than a simple asset purchase - it was calculated positioning for regional expansion.
Telfer instantly transformed Greatland from explorer to producer, delivering 90,000 ounces of gold at $2,100/oz since the takeover was completed.
More strategically significant, the historic Telfer operates as Australia's third-largest gold-copper processing facility, with 20-22mtpa capacity, making Greatland the de facto processing king of the increasingly active Paterson Province.
Yet the real jewel in the crown is Greatland's neighbouring Havieron - Australia's second-largest undeveloped gold project boasting an 8.4Moz gold resource.
Greatland's base case development plan targets 258,000oz annual production at a lowest-quartile cost of US$818/oz over a 20 year mine life.
With over 3,060m of underground development already completed and feasibility studies due mid-year, first ore production looms and is expected by 2027.
Picking up momentum
Greatland's market timing appears impeccable given the Paterson Province's dramatic renaissance after decades of relative exploration neglect.
Rio's significant Winu copper-gold find triggered an exploration stampede across the region, with multiple companies scrambling to secure ground.
Recent discoveries including Ngapakarra, Minyari and Havieron demonstrate the province's emergence as Australia's next Tier 1 mining district with massive pre-mining inventory totalling 32Moz gold, one million tonnes copper and 25Moz silver at Telfer alone.
Billionaire mining magnates Andrew and Nicola Forrest's Wyloo investment vehicle owns 8% of Greatland, with options to double that stake and potentially become the largest shareholder.
Combined with $750 million in committed banking facilities from ANZ, HSBC and ING, Greatland has a significant war chest to execute its ambitious ‘hub-and-spoke processing’ strategy.
Yesterday's impressive 13% surge in share price on debut bolsters the argument that Greatland is strategically positioned at the epicentre of potentially Australia's next mining boom.
With immediate Telfer cash flow funding long-term Havieron development, and established regional processing power, the operational foundations appear rock solid for capitalising on the Paterson Province gold rush.
Shares in Greatland Resources (ASX: GGP) have settled 1.23% down from yesterday's big gains and trading at $7.21 per share at the time of writing.
