Macquarie predicts 18% upside for this ASX mining stock

After falling significantly since its IPO, Greatland Resources could be a buy low option.

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Greatland Resources Ltd (ASX: GGP) is a new ASX mining stock. However, since listing on the ASX in June, it has fallen more than 17%. 

Its initial public offering (IPO) raised $490 million at $6.60 per share. 

It climbed 11% on its first day to close at $7.30 per share, before a consistent fall over the next two months. 

It dipped as low as under $5 per share in mid-August. 

At the time of writing, shares are trading at $6.02.

It released its HY25 results last Friday, which resulted in a 10% jump on Monday. 

Seemingly, investors were pleased with the company's first HY25 report as an ASX mining stock. 

Some key results included: 

  • GGP reported FY25 underlying EBITDA of A$470m
  • FY25-end net cash of $543 million
  • NPAT of A$337 million

Following the release, broker Macquarie Group Ltd (ASX: MQG) released updated guidance. 

Lets see what the broker had to say. 

Mixed result

Macquarie described the half-year result as "mixed" in its report on Friday. 

Macquarie said the company's EBITDA was affected by non-cash inventory changes, while much lower depreciation and amortisation (D&A) led to net profit beating Macquarie's estimate by 43% and the broader market consensus by 4%.

The broker said no dividend was declared (as expected), while net cash was a slight miss due to a HoH lease liability build.

Macquarie noted the FY25-end net cash of A$543m was A$16m below its estimate.

GGP reported FY25 underlying Ebitda of A$470m, stripping out integration costs, ASX listing costs and gains on financial assets, which was a ~9% (~A$49m) miss to MQe/VA. The majority of the miss was driven by an A$39m non- cash change in inventories charge related to stockpiles acquired as part of the Telfer acquisition.

Price target unchanged for this ASX mining stock

With this ASX mining stock being so fresh to the ASX, its first HY earnings report was somewhat "messy" according to Macquarie. 

GGP's result was relatively messy given it is the first look at earnings post finalisation of the Telfer/Havieron acquisition. Net cash was a slight miss due to a build in lease liabilities while, importantly, there was no change to FY26 guidance.

The broker retains an "outperform" rating and 12 month price target of $7.10. 

From yesterday's closing price of $6.02, this indicates an upside of almost 18%. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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