Greatland Resources Ltd (ASX: GGP) commenced trading on the ASX on Tuesday.
On its first day of trading, Greatland Resources shares closed at $7.30 per share.
Greatland Resources shares rose 11% over the course of the day, after its initial public offering (IPO) raised $490 million at $6.60 per share.
GGP has completed its corporate restructure and listing on the ASX, facilitated by a $64 million share placement ($50m on the ASX, and a $14 million UK retail offer).
The newcomer is a London Stock Exchange-listed gold-copper company. It acquired the Telfer gold mine in Western Australia in December 2024. The company also gained full ownership over the nearby Havieron gold-copper project.
Greatland Resources has replaced Greatland Gold as the parent company of the overall Group. Its headquarters have relocated from the UK to Australia.
Here's what top broker Macquarie Group Ltd (ASX: MQG) thinks of the stock.
Macquarie's view on Greatland Resources shares
Following the completion of Greatland Resources shares on the ASX, Macquarie has initiated coverage of the AU shares with a target price of $7.80 per share and an outperform rating, the broker wrote in a note to investors today.
"We note the stock has performed strongly on its first day of trading on the ASX, up 11% to A$7.30/sh from its opening/placement price of A$6.60/sh, with potential momentum to be driven by Australian institutional investor interest, broadened Australia-based brokerage, and potential inclusion in major indices," the note said.
The broker sees additional value in the stock too. In the note, Macquarie states that the current outlook and target price does "not yet include the Havieron expansion to 4.5Mtpa".
The Havieron gold-copper mine project expansion is expected as part of the company's feasibility study due in the fourth quarter of 2025. It is expected to be a fundamental driver of share price growth.
The broker also notes that movements in commodity prices present the most significant risk (both upside and downside) to its earnings forecast and valuation of Greatland Resources.
Its coverage is also based on assumptions within its forecasts for production, capital expenditure, and operating costs, in addition to exchange rates. This means any variances also present material risks, both to the upside and downside, to earnings forecasts, and valuation.
The broker also notes that its operational outlook for GGP assumes incremental life extensions at Telfer as well as the timely development of Havieron.
