Greatland Resources Ltd (ASX: GGP) recently reported a significant upgrade in its gold resources at the Telfer gold mine. This announcement has attracted the attention of analysts from Canaccord Genuity, who suggest that the shares may be undervalued.
Major Resource Upgrade at Telfer Mine
In a recent update, Greatland revealed an increase in gold resources at Telfer to eight million ounces. This increase represents a remarkable 150% rise. The earlier resource update was recorded on December 31, 2024.
Greatland attributed this enhancement to extensive growth and infill drilling. Approximately 134,000 meters of new drilling supported the updated resource figures. Additionally, another 100,000 meters of drilling is planned for the second half of the company’s fiscal year 2026.
New Resource Estimate Details
The new mineral resource estimate also includes an inaugural resource for the West Dome Underground Project, which has delineated 600,000 ounces of gold. When combining the Telfer and Havieron deposits, the total mineral resource estimate now stands at 14.9 million ounces of gold.
Greatland’s Managing Director, Shaun Day, commented on the findings. He noted that the combined resource at Telfer and Havieron, estimated at 550 million tonnes with a grade of 0.84 grams per tonne gold and 0.12% copper, holds great potential for establishing a world-class mining hub. The Telfer resource alone has grown to 8.0 million ounces, with a 163% increase in the high-confidence Measured and Indicated category to 3.8 million ounces.
Analysts’ Perspective on West Dome Underground Project
The Canaccord analyst team expressed enthusiasm regarding the potential of the West Dome Underground area. They view it as a promising opportunity for a second high-grade underground mine at Telfer, especially with existing infrastructure capable of supporting mining rates exceeding five million tonnes per annum.
Canaccord mentioned that while they do not currently model any production from the West Dome, the evolving prospect of the area remains noteworthy. With a second development drive underway, they anticipate that the project could significantly enhance Greatland’s production profile in the medium term.
Price Target Revisions
Following the mineral resource upgrade, Canaccord adjusted its price target for Greatland shares from $14 to $15.45. This is an increase from the previous market valuation of $10.86. As of now, Greatland Resources Ltd is valued at approximately $7.29 billion.
- Company: Greatland Resources Ltd (ASX: GGP)
- Resource increase at Telfer: 150%, totaling 8 million ounces
- New drilling: 134,000 meters completed, 100,000 meters planned
- West Dome Underground Project: 600,000 ounces of gold
- Total resource estimate: 14.9 million ounces (Telfer and Havieron combined)
- Current market valuation: $7.29 billion
- Canaccord price target adjustment: From $14 to $15.45
As Greatland moves forward, the implications of its resource upgrade could present significant opportunities for growth and investment, raising questions about the valuation of its shares.
