Whereas a lot of the inventory market has been tackling trade-related volatility, the Greatland Gold (LSE:GGP) share price has been on hearth. The gold exploration enterprise has hit some spectacular operational milestones these days, reworking it right into a fully-fledged manufacturing enterprise, catapulting its market cap to double in simply 4 months!

Contemplating the market solely sometimes averages an annual return of 8% to 10%, pocketing over 100% in a 3rd of the time is extraordinary. And shareholders are understandably patting themselves on the again. However can this surge be maintained? And will the GGP share price rise even greater?

From exploration to manufacturing

Till just lately, the funding thesis behind Greatland was its possession stake within the Havieron undertaking. This can be a high-grade copper and gold deposit positioned in Australia with an estimated 8.4m ounces of gold equivalents prepared for extraction.

Assuming the feasibility examine comes again constructive within the second half of 2025, and there are not any building delays, Havieron is anticipated to enter industrial manufacturing in 2027. Investing early in mining initiatives is a dangerous endeavour. But when profitable, it will also be immensely rewarding. And this pleasure is a giant purpose why the share price reached document highs in 2020.

Skip forward to December 2024, administration introduced that it had accomplished the acquisition of one other gold-copper undertaking referred to as Telfer in addition to the remaining stake in Havieron. That’s important as a result of Telfer is already a working mine. As such, Greatland has formally transitioned from a dangerous exploration pureplay to a much less dangerous part-producer.

Time to leap in?

With the agency gaining a income stream and manufacturing quantity progress only a few brief years away, the chance profile surrounding Greatland Gold has considerably improved. It additionally helps that gold costs themselves have been steadily rising within the face of geopolitical turmoil, paving the way in which for explosive earnings if costs stay elevated.

As such, the times of large fairness dilution to lift capital may now be within the rearview mirror. So, it’s not too stunning that the common GGP 12-month share price goal is near 20p – round 60% greater than present ranges.

That actually suggests traders ought to take into account shopping for shares earlier than it’s too late. Nevertheless, as thrilling as this chance appears, it’s essential to not get carried away. Greatland Gold nonetheless stays a dangerous enterprise to put money into.

The expansion expectations from analysts revolve across the Havieron undertaking. And even when all operational actions keep on schedule, there’s no method of understanding the place gold costs might be two years from now. If the commodity have been to immediately fall in worth, Greatland’s profitability and money circulation would undergo. In any case, mining companies have quite a lot of fastened prices.

Due to this fact, with the agency’s valuation tied to unsure future expectations, this isn’t a enterprise I’m dashing so as to add to my portfolio regardless of the explosive potential. However for traders snug taking a leap of religion, Greatland Gold could be value a better inspection.