Greenland Minerals Very large but exotic resource but has many complicating issues, and a uranium ban in Greenland.
Investment Perspective: Kvanefjeld represents a substantial resource on the uranium alone, but the combination with other elements serves to complicate the project. To call it exotic would be an understatement. It is a very difficult project to get oneʼs head around. You can imagine the bankers rolling their eyes at the idea of a “new commodity”. It is normal for exotic projects like this to be on the shelf for a long time before they are developed, if at all. We havenʼt run any numbers on Kvanefjeld as there are too many uncertainties. Even if GGG can circumvent the prohibition on uranium mining in Greenland, it will be a very expensive project to develop. Consider the $800m price tag for Nolans in the Northern Territory, another rare earth project with uranium. As interesting as it is geologically, it will be a long road to commercial development. Not only will the complexity of the geology and associate metals provide metallurgical issues, but so will the marketing of the products. Logistic may be an issue, as will politics and finance. The market capitalisation has a great deal of expectation built into it, which will be difficult to sustain in the long term.
GGG Price at posting:
29.0¢ Sentiment: None Disclosure: Not Held
