Greatland Gold share price has been in a recovery mode in the past few days as investors reflect on the company’s new financing. The GGP stock rose to a high of 8.95p, which was slightly higher than this month’s low of 7.70p. It remains about 40% below where it started the year and 77% lower than its all-time high of 38.66p.
Greatland Gold is a mid-size mining company that has operations in Australia. The company focuses on gold, copper, and other precious metals. It has operations in six projects in Western Australia, with the flagship one being the one at Havieron. Therefore, Greatland Gold share price has retreated this year as investors focus on the falling copper and gold prices that have impacted its earnings.
The stock made some modest recovery this week after the firm secured investment from Andrew Forrest, one of the richest people in Australia. His company agreed to spend $60 million buying the company’s biggest shareholder. These funds were part of a new fundraising worth $340 million that the company raised. In addition, the company added Elizabeth Gaines, Mark Barnaba, and Jimmy Wilson entered the board.
These actions are important since Greatland Gold has become a potential takeover target from Newcrest Mining, the biggest miner in Australia. Newcrest is yet to confirm its interest in the company. In a statement, analysts at Berenberg reiterated their buy rating on Greatland Gold following the new funds.
The daily chart shows that Greatland Gold share price has made a comeback in the past few days. It has managed to rise from the year-to-date low of 7.68p to a high of 9.7p. Along the way, the stock remains below the 25-day and 50-day moving averages.
It is also below the lower side of the descending channel shown in blue while the MACD has formed a bullish crossover. Therefore, there is a likelihood that the GGP share price will continue rising as bulls target the next key resistance level at 10p. A drop below the support at 8.4p will invalidate the bullish view.
This post was last modified on %s = human-readable time difference 13:22