Why the Greatland Gold share price plunged 10% on Monday
We examine what potentially drove the Greatland share price lower on Monday, 21 September.
Market volatility sees UK metals and mining stocks plunge
The Greatland Gold (GGP) share price fell ~10% on Monday – as broad market weakness saw equities trade lower across the board – with the UK’s metals and mining sectors facing significant selling pressure.
This anti-risk atmosphere wasn’t contained to equity markets – as spot gold prices plunged during Monday’s session – hitting an intraday low of US$1,890 per ounce. Though Spot Gold recovered some of those losses as the day wore on, last trading at US$1,904 per ounce – the precious metal continues to trade significantly off the high it recorded in August.
Indeed, that small recovery during the back-end of the day did little to save metals and mining UK-listed equities during Monday’s trading session, with the Metals and Mining Sectors experienced significant declines, falling 6.59% and 4.36%, respectively.
Greatland Gold – which has seen its share price run-up over 1,000% YTD – fell in step with those sectorial declines, with its share price plunging some 10.43%, finishing out the day at 24.20p per share.
This was ahead of the broader market – with the FTSE 100 declining 202 points or 3.38% – finishing out the session at the 5,804 point level. At the time of writing, the FTSE 100 December futures contract traded modestly higher, up 21 points, suggesting that the UK market was poised to open in the green on Tuesday.
Spot gold continues to trade in a volatile fashion heading into the UK and US sessions.
Commenting on the broad market moves across the Asian session and how they may impact European trade, IG Market Analyst Kyle Rodda, said:
‘The broad risk-off move in the markets has abated somewhat. However, risk assets are still down, with equities in the Asian region in the red. European and US index futures are trading with a slight downside bias, but aren’t providing a clear signal as to whether last night’s drop ought to continue tonight.’
Greatland Gold share price in focus
Greatland Gold’s impressive share price performance continued last week, with the stock rallying 10% on Monday, after the miner released details of a positive drilling report concerning its Western Australian, Havieron deposit.
Here, Greatland’s Chief Executive, Gervaise Heddle said
‘The expansion of the new Northern Breccia zone is an important development that highlights the potential for a bulk tonnage mining operation at Havieron. Significantly, excellent results from step out drilling to date indicate the presence of higher-grade, massive sulphide mineralisation within the breccia bodies.’
Overall, Greatland said it remains on track to provide an initial resource for its Havieron deposit by the fourth quarter of 2020, while also pointing out that it is currently targeting commercial production of ‘within two to three years from commencement of decline’.
How to trade Greatland Gold long or short…
What do you make of Greatland’s recent developments: Are you bullish or bearish on the gold stock? Whatever your view, you can use CFDs to trade both rising and falling markets, through IG’s world-class trading platform now.
For example, to buy (long) or sell (short) Greatland Gold using CFDs, follow these easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter ‘GGP’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
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