From a quiet entrant on the Australian stock exchange, this ASX gold stock has suddenly found itself in the spotlight. The share price of Greatland Resources Ltd (ASX: GGP) has soared 89% in the past 4 months to $9.27 at the time of writing.
Like many gold shares, the gold and copper producer has benefited from commodity price gains and defensive investor sentiment.
In the past 12 months the ASX gold stock increased its share value by 40.5%. By comparison, the S&P/ASX 200 Index (ASX: XJO) rose by 3.7% over the same period.
Robust gold and copper output
What's behind the rally of the $6 billion miner? A mix of solid production numbers, strong commodity prices, and a string of positive catalysts has flipped sentiment.
Recent quarterly updates showed robust gold and copper output, underpinning the company's turnaround from a loss-making to profitable enterprise.
Greatland isn't just another gold explorer. The ASX gold stock is a gold and copper producer and developer with real muscle in Western Australia's Paterson Province. This is home to the giant Telfer gold-copper mine and Greatland's ambitious Havieron gold-copper project just down the road.
From hopeful to promising producer
After completing its takeover of Telfer and pressing ahead with Havieron feasibility work, Greatland transformed from exploration hopeful to mid-tier producer almost overnight. That evolution has fuelled investor interest and pushed shares toward fresh highs.
Earlier this month, the company released the feasibility study for the project.
It highlighted:
The results of the study are robust, generating an IRR [internal rate of return] of 22.5% at a long term $4,500 per ounce gold price. At a long term price equal to the current spot gold price, this rises to 31.5% IRR.
If the company delivers on its production guidance, brings Havieron online and commodity prices stay buoyant, this ASX gold stock could continue to outperform.
Is there more to come?
Analysts are positive on the outlook for the retailer. It looks like even after this year's share price rally, any stock purchased right now can still benefit from a profit.
TradingView data shows that most analysts recommend a hold or (strong) buy. Some expect the ASX 200 stock to climb as high as $13, which implies a 40% upside at the time of writing.
However, the average share price target for the next 12 months is $10.02. That still suggests a possible gain of 8%.
Macquarie has an outperform rating on Greatland shares and a 12-month price target of $10.50, for a 13.3% return from current levels.
