Greatland Gold plc (LON:GGP), the London Stock Exchange AIM listed precious and base metals exploration and development business is pleased to announce its financial results for the year ended 30 June 2016.
It has been a year of change at Greatland Gold that has seen a heightened level of activity on both existing and new exploration projects.
Last year we observed a turnaround in market sentiment towards the global mining sector after several years of falling commodity prices. Although the recovery in commodity prices is still in its nascent phase, the Board of Greatland Gold believes that we are at or near the bottom of the commodities cycle and, consequently, has spent the last year seeking to reposition the Company for what we hope is a sustained upturn in the sector.
In order to capitalise on these opportunities and execute our strategy, changes have occurred at Board level including the appointment of Gervaise Heddle, Executive Director and myself as Non-Executive Chairman. We would also like to note the resignation of John Watkins and, subsequent to the end of the financial year, the resignations of Andrew Bell, former Chairman of Greatland Gold, and Paul Johnson, former Non-executive Director. On behalf of the Board, I would like to thank Andrew, Paul and John for their dedication and service.
Greatland Gold successfully raised £637,000 of new equity (net of costs) during the year and a further £389,025 (net of costs) since the close of the financial year. These funds will be used to advance further our current projects and to take advantage of the exciting opportunities that we believe exist in the market at this time, whilst maintaining a disciplined approach towards capital allocation.
Over the past 12 months the Group recorded a loss of £662,903, equating to a loss of 0.06 pence per share with net cash inflow for the year of £130,871. The loss for the year is reflective of total administrative expenses of £518,894 plus exploration costs of £145,232. This compares to a loss of £1,077,779 in the previous year that equated to a loss of 0.15 pence per share. The Group’s cash deposits stood at £883,478 at the period end.
Our strategy for the year ahead involves two key elements. First, we continue to accelerate our plans to exploit our existing pipeline of exploration projects. At the time of writing, Greatland Gold is in the midst of an ambitious exploration campaign at the Ernest Giles gold project in Western Australia, is preparing for further exploration at its Tasmanian gold assets and is awaiting the results of its downhole EM survey from the Bromus project.
Second, we are actively seeking new external opportunities to capitalise on the relatively depressed valuations that we believe still exist in the sector. After the close of the financial year, we announced that Greatland Gold reached an agreement to acquire 100% of the Havieron Project. The Havieron Project covers 135 square kilometres in the Paterson Region of Western Australia and is located approximately 40 kilometres east of the prolific Telfer gold mine. Limited historical drilling by Newcrest in the 1990s demonstrated high grade gold and copper mineralisation and we believe that the Havieron Project provides Greatland Gold with a walk up resource definition drill target in a region that is attracting increasing interest from major mining companies.
In summary, we remain confident in the long-term fundamentals of the major commodities, particularly gold and precious metals. We intend to capitalise on this view by advancing our existing projects and seeking new projects at sensible valuations. Our thanks go to Callum, Gervaise and the team.
10 November 2016