Greenland Minerals and Energy (ASX.GGG) Last sale 15c GGGOB (8c, Sept 2018) Last sale 7.4c
There have been many recent positive press articles concerning GGG’s enormous Kvanefjeld project, with the recent Mining Journal article attached.
Please note that the Global X uranium ETF increased their stake by a further 11m shares of on market purchases over the last 2 weeks to now hold over 91m shares, or 9.15%.
GGG MD Dr. John Mairis traveling to the PDAC Mining Conference in Toronto where GGG will present at the special Greenland session, and also meet with a host of industry participants keen to discuss further the great leaps forward taken by GGG in recent times.
So the current pullback presents a great buying opportunity in anticipation of potentially large overseas investor interest.
The last quarterly report and the RM Research Report was released in Dec with a short term target of 23c (heavily discounted)
While we have had a stellar run, including more than doubling in the last 3 weeks one should be confident there is further substantial upside and that these levels could still represent the tip of the iceberg.
While going into far more detail in the report and in recent buy recommendation mentioned the main reasons to have such confidence in GGG are as follows-
-GGG has the world’s largest deposit of Rare Earths outside of China and 5th biggest deposit of uranium.
-both uranium and rare earths are integral to an energy efficient future, so similar to lithium and cobalt So one could anticipate a run in these commodities as well.
-Greenland is a poor underpopulated country which survives on Danish aid. The Danes changed laws to allow Greenland to export uranium so this project can go ahead
-the partnership with Chinese Rare Earth expert, the $3b Shanghai listed Shenghe Resources is a game changer. They have access to funds, off take and extraordinary technical know how and conducted due diligence on 55 rare earth companies globally before deciding to partner with GGG.
-it is the intention ( speculation) that GGG end up with a free carry of perhaps 40% in a project which last had an NPV of $1.6 billion but the possibility is there that Shenghe will take it beyond $4 billion
-40% of $4b is $1.6b. The current market cap is $150m so still There is the potential for extraordinary upside over time.
Cheers
CaptR
GGG Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
