A Quick Look at Greenland Minerals Ltd

Greenland Minerals Ltd (ASX:GGG) is an Australian company which is focused on the development of the Kvanefjeld rare earth project which is located in South-West Greenland. Kvanefjeld is a large-scale rare-earth project which is centered on the globally unique Ilimaussaq Alkaline Complex and it has JORC-code compliant resource of more than 1 billion tonnes, and an ore reserve estimate of 108 Mn tonnes. According to the comprehensive feasibility study which was completed in 2015, the project is having the potential of being a long?life, low cost, and large?scale producer of rare earth elements.

The company’s Major shareholder is Shenghe Resources Holding Co. Ltd which is a global leader in rare earth production, and it is listed on the Shanghai Stock Exchange. Both companies (Shenghe Resources and Greenland Minerals) are working to optimize the Kvanefjeld project, and to develop the project as a low-cost, rare earth mineral supplier.Â

Recently, Shenghe Resources formed a joint venture with subsidiaries of China National Nuclear Corporation (CNNC), to create China Nuclear Hua Sheng Mining Ltd. In 2017?18, the company undertook technical work programs with Shenghe Resources to improve its metallurgical performance and infrastructure footprint in Greenland which will enhance the Kvanefjeld’s cost structure. The company is headed by Mr. John Mair who is the Managing Director of the company. Mr. John Mair is highly experienced economic geologist, and he holds a PhD in economic geology (UWA). The company’s Senior management includes Mr. Miles Guy who is serving as the Chief Financial Officer (CFO) of the company from 2009.

In the December quarter, the company witnessed significant progress on Kvanefjeld Project optimization and project permitting. The optimization was focused on both areas of metallurgical process development, and civil engineering design.

In November 2018, the company participated in an IAEA workshop which was conducted in Swakopmund, Namibia.

In October 2018, the Democrat party entered an agreement with the coalition government to provide support across key areas including the rare earth production. This shows the strengthened Government support for the mining industry. During the December quarter, to address engineering design and costs the company brought together on-site a collective of specialist engineering groups including Nuna Logistics, Tetra Tech, PND Engineers and China Communications Construction Co (C-CCC).

For the half year ended 30 June 2018, the company reported revenue of $86,000 and loss of $1,493k. As at 30 June 2018, the company had current assets of $7,888k and current liabilities of $1,061k.

Now let us quickly have a glance at Greenland Minerals Ltd.’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $0.062 and increased by almost 1.639% during the day’s trade, with a market capitalization of circa $69.09 million. The stock has generated a negative YTD return of 10.29% and posted negative returns of 25.61%, 28.24% and 8.96% over the last six months, three months and one-month, respectively. It has a 52-week high price of $0.105 and a 52-week low of $0.055, with an average trading volume of ~1,103,614.

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