AFR 04/08/25 -
Not-so-Greatland Gold under
scrutiny from investors, ASIC
Street Talk
For a moment, bankers at
Barrenjoey Capital Partners,
Bank of America and Canaccord
Genuity looked like heroes having
navigated Greatland
Resource onto the ASX and into
the gold production big leagues
with a float that sent the
company's stock more than 12
per cent higher on debut.
That was late June. Now the
same bankers are feeling the
heat from aggrieved investors -
and curious regulators - after
Greatland warned it would not
meet its production guidance
for the next year, and expected
costs to be higher than forecast.
Having floated at $6.60 per
share, and jumped above $7,
Greatland stock closed Friday at
$5.18.
The guidance that will be
missed wasn't signed off all that
long ago, given it was included
in a prospectus lodged with the
Australian Securities and
Investments Commission in late
May. Greatland made it barely a
month on the ASX before
telling investors those numbers
were likely to be wrong.
So it's no surprise that ASIC
has been asking questions
about what the company - and
its advisers - knew at the time
of the float, a deal that switched
its headquarters from the
United Kingdom to Australia.
ASIC was contacted for
comment.
Greatland owns the Telfer
gold and copper mine in
Western Australia's Pilbara region
and snapped up the remaining
70 per cent interest
that it did not own in the neighbouring
Havieron project from
Newmont Corporation in a cash
and scrip deal worth $US475
million ($730 million).
As part of the ASX listing,
Newmont offloaded half of its
Greatland stake for $440
million.
The company's major investors
include the billionaire
Forrest family, who have owned
a stake since Greatland was a
small explorer.
Examples of such a sudden
downgrade are few and far
between.
Greatland still has its backers.
Including Barrenjoey,
whose analysts are telling
clients to buy up despite the
prospectus snafu
Not-so-Greatland Gold under
scrutiny from investors, ASIC
Street Talk
For a moment, bankers at
Barrenjoey Capital Partners,
Bank of America and Canaccord
Genuity looked like heroes having
navigated Greatland
Resource onto the ASX and into
the gold production big leagues
with a float that sent the
company's stock more than 12
per cent higher on debut.
That was late June. Now the
same bankers are feeling the
heat from aggrieved investors -
and curious regulators - after
Greatland warned it would not
meet its production guidance
for the next year, and expected
costs to be higher than forecast.
Having floated at $6.60 per
share, and jumped above $7,
Greatland stock closed Friday at
$5.18.
The guidance that will be
missed wasn't signed off all that
long ago, given it was included
in a prospectus lodged with the
Australian Securities and
Investments Commission in late
May. Greatland made it barely a
month on the ASX before
telling investors those numbers
were likely to be wrong.
So it's no surprise that ASIC
has been asking questions
about what the company - and
its advisers - knew at the time
of the float, a deal that switched
its headquarters from the
United Kingdom to Australia.
ASIC was contacted for
comment.
Greatland owns the Telfer
gold and copper mine in
Western Australia's Pilbara region
and snapped up the remaining
70 per cent interest
that it did not own in the neighbouring
Havieron project from
Newmont Corporation in a cash
and scrip deal worth $US475
million ($730 million).
As part of the ASX listing,
Newmont offloaded half of its
Greatland stake for $440
million.
The company's major investors
include the billionaire
Forrest family, who have owned
a stake since Greatland was a
small explorer.
Examples of such a sudden
downgrade are few and far
between.
Greatland still has its backers.
Including Barrenjoey,
whose analysts are telling
clients to buy up despite the
prospectus snafu
Never actually bought in... got that one right. First time for everything. The rum is safe for another day ... ha ha ha ha
Interesting.
Kind regards
rcw1