Greenland Minerals and Energy (GGG.ax)

poodles

Greenland Minerals and Energy Limited

Ticker - GGG.ax
Shares in Issue - 416.4m
Market Cap. - $153m
Current SP - $0.37
Brokers Price Targets (Short to Medium): $0.90 - $1.80 - $6.36
Net Cash $3.4m


Greenland Minerals and Energy Limited is a Greenland focused mineral explorer and developer listed on the ASX focused on the Kvanefjeld rare earth-uranium-zinc deposit in southern Greenland. It currently holds a 61% JV interest but has recently come to terms to move to 100% ownership.

First off, for a taste of how big this story is (and a little ramp!) you just have to look at both the near and medium term price targets that have been issued just very recently via company research reports.

Between three of the companies that have initiated coverage on GGG this year, their short term to medium term targets represent a percentage increase of between 200% - 500% - 1700% on the current share price.

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The current JORC resource of Rare Elements is 10.33Mt and Uranium (U3O8) of 575mlbs which is of global significance.

To put it in perspective, Kvanefjeld is the biggest Rare Earth resource in the world outside China.
It is also the fifth largest Uranium resource in the world.

To compare GGG to against its peers of emerging rare earth producers it's clear to see that the market has discounted GGG by some degree...





One of the main reasons that the market has valued GGG at just $150m based on their resource is that Greenland currently have a zero-tolerance on Uranium mining.
Greenland simply can't afford to not uplift this ban and get their economy growing.
This policy will be lifted very soon imho and this will be the main catalyst for the share price re-rating and the market to take notice.

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I've left a lot out but a lot more information can be gained from reading some of the latest research reports:

Research Reports:

Bell Potter Securities - 24 September 2012
12 Month Target: $2.32
[No direct link to this - please email me and I can forward it to you]

RM Research - 20 September 2012
Medium Term Target: $1.80 - $6.36
http://www.ggg.gl/docs/RM-Research-GGG-Gaint-Leap-Forward-Report-Sept12.pdf

Shaw Stockbroking - 16 May 2012
Target Price: $2.25
http://www.ggg.gl/docs/shaw-research/company-report-16-May-2012.pdf

Latest GGG Investor Presentation - September 2012
http://www.ggg.gl/userfiles/GMEL-Company-Presentation-September-2012.pdf


Related Greenland / GGG News & Comments Links

New York Times - Race Is On as Ice Melt Reveals Arctic Treasures
http://www.nytimes.com/2012/09/19/science/earth/arctic-resources-exposed-by-warming-set-off-competition.html?pagewanted=all

New York Times - A Melting Greenland Weighs Perils Against Potential
http://www.nytimes.com/2012/09/24/science/earth/melting-greenland-weighs-perils-against-potential.html?_r=2&ref=global-home

Greenland under pressure from all sides
http://www.cphpost.dk/news/international/greenland-under-pressure-all-sides

neil.p.b

poodles wrote: »

Greenland Minerals and Energy Limited

First off, for a taste of how big this story is (and a little ramp!) you just have to look at both the near and medium term price targets that have been issued just very recently via company research reports.

Between three of the companies that have initiated coverage on GGG this year, their short term to medium term targets represent a percentage increase of between 200% - 500% - 1700% on the current share price.

Poodles I am in no way trying to deramp GGG, but broker/research reports and target prices aren't worth the pieces of paper they are written on and to considering them when making an investment decision is extremely naive IMO.

turbobaby

This is my kind of speculation!

Massive potential, but inhibited by government policy.

This is on the shortlist for some investigation. Thanks Poodles.

poodles

Hey Neil,
I completely agree. I certainly haven't based my investment on these reports - these reports are only just released this past week and I've been watching GGG for some time now and I have good reasons to think it is very close to the bottom.

Those reports are a good start to researching the company; they condense a lot of important facts and figures into one document and is a good start for further detailed research.

Also, these research companies as you know are being paid by the company or else hold stock in the company so yes, I agree they should be taken with a pinch of salt, but they do none the less highlight just how undervalued GGG are in this instance.

What I also like is the fact that the resource is there and can be measured, studied and samples etc.
It is there in the ground for all to see. It's not going to be a case of spending millions of dollars and coming up with dust which is the risk you take with so many oil explorers out there.


I believe that GGG are closer than we all know with having the uranium ban uplifted by the Greenland Government. My own guess would be inside two months.

Be worth while keeping an eye on the asx..
I think the sp has been held back the past couple of weeks but should be out of the traps Monday and ready to race ahead!

neil.p.b

poodles wrote: »

I think the sp has been held back the past couple of weeks but should be out of the traps Monday and ready to race ahead!

Fundamentals aside, the chart does certainly look like it could break out in the near future, 0.65 target once it does. Thanks for the heads up, will be keeping a close eye on it.

RATM

The fact the uranium is in the ground for all to see is interesting. But I just came across this article on Bloomberg which claims uranium prices are at a 2 year low. Some analysts are thinking it might go lower as Germany and Japan have it stockpiled and are committed to ending nuclear power whereas others think the price per pound will start to recover next year- either way the experts are far from agreeing.

http://www.bloomberg.com/news/2012-09-18/uranium-recovery-postponed-as-price-drops-to-2-year-low.html

The political side of the equation though is compelling- from reading around it is difficult to see the Danish government holding out much longer on the ban, especially given the amount of investment and jobs at stake. Also the fact that the mining will be taking place a long way away from Denmark itself makes it even more likely- if it was in Denmark then we'd likely see mass protests. Greenland has a population of 55,000 and Denmark has control of their foreign policyand will be eyeing up the royalties and taxes from any mining.

Definitely one to watch.

poodles

Hi RATM,

The Greenland Mineral Resources Act has come into effect since the 1/1/2010, meaning all future decisions regarding the minerals resources of Greenland will be made by the Greenland Government, rather than the previous situation of joint control by Greenland and Denmark.

While the effects of the Fukushima disaster is still felt in the price of Uranium, the thing with GGG is that even though their Uranium resource is the 5th largest in the world, their story is more about the massive 10.3MT of Rare Earth Elements sitting at the surface - which is the largest in the world outside of China.

Coming back to the political side of things, it is no secret that there are Korean backers to this project.

"South Korean president Lee Myung-Bak will make an official visit to Greenland at the beginning of September and the Korean money men are expected to travel to Nuuk and Narsaq a few weeks after the presidential visit to inspect their potential investment.

Funding for the mine is slated to come from a South Korean investor group consisting of four giant conglomerates including automotive and marine manufacturer Hyundai, an unnamed private investor and two state-run companies, including the South Korean counterpart to the Danish energy company DONG Energy."

http://www.cphpost.dk/news/international/greenland-under-pressure-all-sides


The market has discounted GGG mainly due to the fact that there is a ban on Uranium by the Greenland Government (it would not be possible to just mine the REE alone in Kvanefjelds case)
This ban will be lifted very shortly IMHO and the market will have to take in some consideration for the largest resource of Rare Earth Metals in the world outside China along with the worlds 5th largest Uranium resource..

poodles

Oh yes, those watching may have noticed that GGG went it to Trading Halt on the ASX with details of a capital raising pending.



"Placement of up to approximately 50.0 million shares to raise A$15.0 million (“Placement”). The Placement will be conducted under the 15% placement capacity of the Company in accordance with ASX L.R 7.1.

In addition, the Company will issue 1 free option for every 2 placement shares with a 2 year term (expiring approximately 5 October, 2014). Options will be freely transferrable after issue but not necessarily quoted on ASX.

Option conversion price is A$0.60. Options are subject to shareholder approval."



This placing leaves GGG in position to move to 100% ownership of the project and leaving them with sufficient working capital for over 12 months.

poodles

The MD of Greenland has just bought approx. $175,000 worth of stock on the market the past week!

xertpo

Some more background on Greenland. I'm thinking of picking up a few next week.

http://beforeitsnews.com/gold-and-precious-metals/2012/10/its-game-on-for-rare-earths-in-greenland-rick-mills-2-2452798.html

A Primal Nut

What's the easiest way to buy these? I can't find them on the fxcm platform with GGG (which refers to a company called Graco Inc.) however their ADR's are available on FXCM: GDLNF. Should I just go for the ADR's - or how did you invest, Poodles? Would prefer to invest in the company directly, if possible. Thanks.

RATM

Interesting to see that the MD of Greenland topped up his shares a few days ago
http://www.4-traders.com/GREENLAND-MINERALS-AND-EN-10202831/news/Greenland-Minerals-and-Energy-Limited-Greenland-Minerals-and-Energy-MD-Rod-McIllree-acquires-more-15323051/

I'm interested in getting in here too but am keen to hear what others think of the risk and where it lies. Do you tend to see this a primarily a political one? It looks like a great little company but my main worry is that it is uranium they are seeking a mining license for. Do we have any indication how the public are reacting to the potential for uranium mining occurring ? I know the Inuit government are pro-mining but lifting the moratorium on mining uranium might not go down well with the population ?

poodles

A Primal Nut wrote: »

What's the easiest way to buy these? I can't find them on the fxcm platform with GGG (which refers to a company called Graco Inc.) however their ADR's are available on FXCM: GDLNF. Should I just go for the ADR's - or how did you invest, Poodles? Would prefer to invest in the company directly, if possible. Thanks.

Hi Primal Nut,
I have used TD Direct Investing to buy my GGG.

The ticker GDLNF seems to be the OTC Pinks Sheets in the USA but what you are looking for is GGG.AX on the Australian Stock Exchange (ASX)

poodles

RATM wrote: »

Interesting to see that the MD of Greenland topped up his shares a few days ago
http://www.4-traders.com/GREENLAND-MINERALS-AND-EN-10202831/news/Greenland-Minerals-and-Energy-Limited-Greenland-Minerals-and-Energy-MD-Rod-McIllree-acquires-more-15323051/

I'm interested in getting in here too but am keen to hear what others think of the risk and where it lies. Do you tend to see this a primarily a political one? It looks like a great little company but my main worry is that it is uranium they are seeking a mining license for. Do we have any indication how the public are reacting to the potential for uranium mining occurring ? I know the Inuit government are pro-mining but lifting the moratorium on mining uranium might not go down well with the population ?

RATM, GGG will be applying for a Multi Element Mining License - primarily for Rare Earth Elements with Uranium produced as a by-product.

So, it's true that Greenland has a zero tolerance on Uranium mining. This is the reason why the market has capped GGG so low in comparison to its peers on a resource basis.

Once this ban has been lifted, the market will have to take into account that GGG have the largest deposit of Rare Earths outside China along with the 5th largest resource of Uranium on the planet. And I think it will take it into account pretty quick - Bell Potter thinks 90c is achievable alone on the ban being lifted.

You would also have to think that the directors of GGG will be in regular contact with the Greenland Government and will know what is on the cards.
The MD of GGG has parted with $170,000 of his own cash in the past week by buying shares in the company - speaks volumes to me!

There are large players waiting in the background. If you haven't read this article then I suggest you do before making up your mind:
http://www.cphpost.dk/news/international/greenland-under-pressure-all-sides

Also worth a watch is this interview with Managing Director, Roderick McIllree from March 2012:

Thargor

Poodles are these listed in France and Germany aswell? Is there any liquidity on those or is ASX the best place to buy?

Think Ill hang onto my cash for if GKP sinks lower but thanks for the tip again, definitely keeping an eye on it, hope it doesnt drag on forever like AMC did waiting for that license.

poodles

Thargor wrote: »

Poodles are these listed in France and Germany aswell? Is there any liquidity on those or is ASX the best place to buy?

Think Ill hang onto my cash for if GKP sinks lower but thanks for the tip again, definitely keeping an eye on it, hope it doesnt drag on forever like AMC did waiting for that license.

Hey Thargor,
It's an Australian company and the recent capital raising was taken up mainly by Australian brokers and institutions. So all the liquidity lies on the ASX.

Great opportunity to potentially more than double your investment and de-risk and ride for free if the broker target prices are to believed!

T L

poodles wrote: »

Hi Primal Nut,
I have used TD Direct Investing to buy my GGG.

The ticker GDLNF seems to be the OTC Pinks Sheets in the USA but what you are looking for is GGG.AX on the Australian Stock Exchange (ASX)

Hey, these might seem like silly questions, sorry in advance!

- Am I right in understanding that you're saying that the GGG.AX shares will be more liquid than the GDLNF ie. easier to sell? Is that a big issue, for example, if I bought GDLNF shares on Firstrade as opposed to GGG on TD Direct Investing, if the share price rises in the future and I want to sell, would I have a delay or trouble selling the shares?

- Firstrade mentions a $0.01-0.05/share ADR custody fee. So these shares fall into that category as they're OTC pink sheets?

As you can guess, the past few days have been the first time I've looked into online trading... I'm mainly asking the above as I'm looking into investing a fairly small sum (€1.5-2k) and I'm trying to figure out what my best options are given that some sites have inactivity fees ie. Firstrade don't (and they also have lower per trade fees than TDDI) but they only have access to US exchanges and markets. I'm pretty interested in GGG so that might sway where I open an account. Thanks in advance for any answers!

poodles

As much as it pains me to suggest them, given my experiences with their terrible lack of customer service, TD have an easy to use platform and allow you to trade on most of the major exchanges.

I'm not too sure on their fees, but it's generally 15-20 euro per trade for TDDI.

As regards what side of GGG to invest in, I personally would only consider the ASX market.

As regards liquidity, you should not have a problem when dealing on the ASX - the current order book for GGG can be seen here:

http://cb.iguana2.com/netwealth/depth/ggg

Hope this helps!

T L

Sound thanks for the advice man ^^

I don't think it was posted already, they've completed the 100% acquisition of the Kvanefjeld project, announced yesterday.

Company website:
http://www.ggg.gl/docs/ASX-announcements/GMEL-acquisition-of-the-outstanding-balance-of-Kvanefjeld.pdf

poodles

Nice video here from The European Environment Agency called Planet RE:think

There's a section that includes GGG from around minute 22

http://vimeo.com/44248559

Sparrow_Hawk

What is the outlook for sp if the uranium ban isn’tlifted by Greenland government?

poodles

Hi Sparrow_Hawk,

The result of the decision by the Greenland Government whether or not to lift the ban on Uranium mining is a binary outcome for GGG.

Since the Uranium and the Rare Earth Metals are co-mingled, if the Governments stance on a ban on Uranium mining stands then GGG's Kvanefjeld project will be hard to develop - at a guess, construction and production of a mine would be put back by some years. Ultimately having quite an impact on the SP one would assume.

The current SP and market capilisation of Greenland Minerals takes this risk in to account in my opinion. All recent media and broker reports suggests that the Greenland Government are ready to lift the ban.

On 10/09/2010, an amendment was made by the Greenland Government to the Standard Terms of Exploration Licenses that allows the inclusion of radioactive elements as exploitative minerals for the purpose of thorough evaluation and reporting. The change came after ongoing dialogue between the Greenland Government and GGG representatives.

Following on from that, on the 14/12/2010, GGG announced that it had received approval from the Government of Greenland to fully evaluate the Kvanefjeld multi-element project, inclusive of radioactive elements.

On the 5/12/2011, GGG announced that the Greenland Government amended the company's exploration license covering the Kvanefjeld multi-element project such that it is now inclusive of Uranium.


What I take from the above is that Greenland Minerals have an excellent working relationship with the Greenland Government. I then find it comforting that the Managing Director, Roderick McIlree has just last week invested some $170,000 of his own money into the company by buying shares on the market.

Besides, to after all the years of constructive talks and progress on the Kvanefjeld project, to go and uphold the ban on Uranium mining would send the worst possible message to the world about investing in Greenland.
Greenland need foreign investment if they are to move away from relying on $0.5bn worth of grants from Denmark each year. They simply can't afford to turn away this type of investment especially seeing as how Cairn Energy have not done so well in Greenland of late - they spent $1.2bn last year on oil exploration off Greenland and came up with nothing.

I can possibly see the ban on Uranium being lifted say, on a case-by-case basis. With Greenland Minerals having such a good working relationship with the Government, I can't see there being a problem here.
Perhaps a condition of uplifting the ban will be that sales of Uranium would only be to approved partners.

Taken from the recent Bell Potter Research Report (24/09/2012):
[12-month price target: $2.32]

Approval for uranium mining: what will it take?

The issue of uranium mining is the topic of intense debate in Greenland. Most of the 56,000 (or so) people in Greenland agree on the need for economic growth and are in favour of mining, if it can be done without too much ecological or social disruption.

The ban on uranium originated with Greenland’s former ruler, Denmark, over 20th century concerns about the proliferation of nuclear weapons. However, the end of the Cold War, improved life-cycle tracking of radioactive materials, and the need for greener energy sources has shifted global thinking about uranium mining. Greenland is no exception, as shown by the Government’s willingness to allow Kvanefjeld to proceed to DFS.

We think this political momentum will continue, and result in the approval of uranium mining and the issuance of a Mining Licence to GGG. Many stakeholders are involved in the national uranium debate and the outcome is far from certain.

The way forward for Greenland in this process will be to work with the more-experienced Denmark on the defence, foreign policy, administrative and economic implications of uranium mining. Third parties such as the International Atomic Energy Agency (IAEA) and the European Supply Agency (ESA) will also take part in the conversation.


Also taken from the research report:

Press clippings … times are changing

““I hope we can soon change the zero-tolerance policy and produce the uranium that we have rather than being an open-air Arctic museum,” [said] Doris Jakobsen, an MP for opposition party Siumut.

Jakobsen stressed that Greenland’s uranium would not be used to make weapons … Greenland’s leading political party, the left-leaning IA, continued to state its resistance to mining uranium while recognising that the ban may soon be repealed.

“If one is totally realistic and considers the parliamentary situation, it might be difficult to continue to maintain a zero-tolerance policy,” [said] Sara Olsvig, one of Greenland’s representatives in the Danish parliament.

“But the fact that we may soon abolish the ban means that we should also build the institutional knowledge that is necessary”.” - Source: Ray Weaver, “Greenland split over uranium mining.” The Copenhagen Post, 4 July 2012.

“Oil and gas have been the focus of exploitation [in Greenland] so far – but the EU sees just as much potential in a massive opening up of mining operations across the world's biggest island, according to Antonio Tajani, the European commission's vice-president and one of the most powerful politicians in the union. He called the move, raw material diplomacy.” - Source: Fiona Harvey, “Europe looks to open up Greenland for natural resources extraction.” The Guardian, 31 July 2012.

“China is lobbying intensely for permanent observer status on the Arctic Council … High-level diplomats have … visited Greenland, where Chinese companies are investing in a developing mining industry … In the past 18 months, Secretary of State Hillary Rodham Clinton and President Lee Myung-bak of South Korea have made debut visits here, and Greenland’s prime minister, Kuupik Kleist, was welcomed by President José Manuel Barroso of the European Commission in Brussels. “We are treated so differently than just a few years ago,” said Jens B. Frederiksen, Greenland’s vice premier …“We are aware that is because we now have something to offer”.” - Source: Elizabeth Rosenthal, “China joins nations seeking treasure in Arctic warming.” The New York Times, 19 September 2012.


As far as I'm aware, the Bell Potter research report is only available to their clients.. I can forward on a copy if anyone wants to pm me.

RATM

Poodles reading through all that does certainly make for convincing reading that this ban will be over turned. It is a risky play in that if it isn't then they'll find it difficult to mine the other rare metals that are present without mining the uranium, thus making the project untenable.

From the research I've done though it seems the government are leaning towards some sort of agreement. The video you posted above with GGG featured is very interesting indeed. I'd even go so far as to say that even if the ban isn't lifted soon it almost certainly will be in the future- the fact that China has 97% of the worlds uranium and only exports 25% of it no doubt doesn't sit well with Washington'London/Paris and that coincides nicely with the fact that Hillary Clinton paid a flying visit to Greenland as alluded to in a previous post above.

Also Roderick topping up is a really positive signal, like why would anyone buy 170k worth of shares unless they are at least reasonably confident that the ban will be overturned. He is close to the Greenland government so most likely has some idea of how the cookie is going to crumble and has put his money down to back a favourable outcome

I'm 99% certain that I'll get in here within the next two weeks. It is risky for sure but the upside is potentially very lucrative and if the ban is lifting the SP will skyrocket upon that news alone. Poodles what is the best indication we have on a timeline / decision on lifting the moratorium ? I don't want to miss this boat but am also waiting on a RNS from USOP, would prefer have that first as the news there will determine how much I'll invest in GGG.

poodles

Hi RATM,

Here's a link to a recent article (19/10/2012) which I just read myself for the first time today and am even more excited after it!

http://www.business.dk/global/han-vil-have-uranminer-aabnet-i-groenland

Translated:

He wants uranium mines opened in Greenland

[Picture]
Since 2009, Ove Karl Berthelsen been Minister for Enterprise and raw materials. He has courageously and boldly
taken on the task of explaining both the critical issues and the gaping public deficit that shows Greenland needs to
lift the moratorium on uranium. Photo: Marie Hald



Boom…...

Minister for Natural Resources and Industry Ove Karl Berthelsen leads the struggle for the first Greenlandic uranium mine. The minister plays a key role in Greenland's new explosive industrial policy.

By Bent Sorensen Højgaard


Ove Karl Berthelsen
Born: 3 November 1954 in Sisimiut. Is the minister for industry and raw materials for the party Inuit Ataqatigiit (IA).Career: 1974-79: Bank Assistant in Greenland Bank.1979-81: Deputy Head of Co-operatives Sipineq. 1981-83: Fisker. 1983-2002: administration manager and department manager in various private companies and public administration. 2002-09: Self-employment. Political career:2001-08: Member of the Municipal Council in Nuuk for the party IA. 2009: Government of Food and raw materials. Personal: Married to Meg Kramer Berthelsen, the couple has three children.

19th October 2012 10:35

Ove Karl Berthelsen. It is the name of one of Greenland's most ambitious and international politicians. He is a man who, those in Denmark should pay close attention to in the coming years, the 57-year-old minister of industry and resources from Inuit Ataqatigiit (IA) believes that Greenland after two decades of no to uranium mining will take a discussion on abandoning the decades long zero-tolerance policy before the turn of the year and will then start to process the request for the opening of a mine with rare metals and uranium in Greenland by Australian Company Greenland Minerals and Energy Ltd.

Ove Karl Berthelsen was born in the thriving fishing town of Sisimiut north of Nuuk. A town which through the ages has been known for nurturing ambitious and self-conscious politicians and business people. Both as a private man and politician all call the energetic little round mining minister a friendly and pleasant man. Ove Karl Berthelsen cherish his family with his wife Meg Kramer Berthelsen, the couple's three children and two grandchildren. It makes personal points in small communities in Greenland, where children play a central role. During the 1970s, '80s and 1990s, there were festive and happy days in his party, the Inuit Ataqatigiit, Siumut and other Greenlandic parties. There was plenty of beer, wine and hard liquor on the tables. Ove Karl Berthelsen chose to be one of the first of partiers to stop drinking. He prioritised his family and career over booze. For a while he was also a member of the parish council in Nuuk for IA, which at the time was quite unusual for the non-religious party comrades.

In the struggle for uranium

Since 2009, Ove Karl Berthelsen has been the Minister for Enterprise and raw materials. During this time he has taken on the task of explaining both the critical issues associated with mining whilst highlighting the gaping public deficit that shows Greenland needs now to lift the moratorium on uranium. It must end the zero-tolerance policy he says. Ove Karl Berthelsen's proposal is that the IA and the four other political parties will make a decision on the uranium issue at the parliamentary level in this sitting of parliament, scheduled to end 15th November. In IA party organization, many once strongly opposed giving up one of the party's zero tolerance policy. This may no longer be the case.

Ove Karl Berthelsen has a diverse professional and political experience. He was for many years senior positions in companies and in the public sector in Greenland before he in 2009 became minister. He has for many years been one of the grassroots Inuit Ataqatigiit, which was founded in 1978 as a Marxist-Communist wing party. Greenland self-government agreement with Denmark is just three years old. With its disposal Greenland over its subsoil, while Denmark has responsibility for foreign affairs, defence and security. It ends up that the government approves the Australian Greenland Minerals application for production of uranium in a mine with rare metals as main product, the Self-Government Act be put to a severe test. Ove Karl Berthelsen is a pragmatic politician with both feet firmly on the ground. When in 25 years to be written history of Greenland probable mining boom and industrial adventure, he will get a staring mention.

poodles

The Greenland Government were due to decide on the matter by the end of the year.

According to this article, it looks like a decision will be made by the 15th November!

Everything is looking extremely positive now for GGG and I think even if the ban is lifted conditionally then we should see a massive re-rate in the share price.

Current SP of 30c is what the recent placement was undertaken at so I think now is as good as any a time to buy. I personally don't see the SP at this level come the 15th of November.



P.s

It's worth taking a look at what happened to the share price over the past couple of years on these two occasions in particular:

On 10/09/2010, an amendment was made by the Greenland Government to the Standard Terms of Exploration Licenses that allows the inclusion of radioactive elements as exploitative minerals for the purpose of thorough evaluation and reporting. The change came after ongoing dialogue between the Greenland Government and GGG representatives.

Following on from that, on the 14/12/2010, GGG announced that it had received approval from the Government of Greenland to fully evaluate the Kvanefjeld multi-element project, inclusive of radioactive elements.

RATM

Thanks Poodles, that article has me jumping up and down at the desk ! Mainly because (as you know) my main fear was that we could be dealing with an anti-mining public led by anti-mining politicians.

So I'm over the moon that the mining minister isn't the stereotypical career politician that we are familiar with here in Ireland- he has spent much of his working life in the private sector which I think means he would have a different perspective and approach that a politician who spent their whole working life in the public sphere.

There are a lot of things slotting into place for me here and I reckon as risky investments go it is a great pick and has excellent potential for reward. Nearly all the signals coming out of this are positive towards the ban being lifted (at least conditionally). Good all year round shipping routes are right beside the zones which is another positive.

I'm getting in here asap, their parliament is dissolving for Christmas on November 15th so we'd hope to have a decision by then, no doubt the BoD are counting on it and that is why they topped up a few weeks ago. Politics is politics though and this is a major domestic policy issue for Greenland so it may drag on to January/ Feb so I'm prepared for that

Helpneeded86

How would someone who has never invested in shares before purchase 1-2k worth? Could someone provide a fools guide?

JaimeLannister

Decent first hour of trading tonight in Oz - up about 10% with plenty of buys going through. Lets hope this is the start of a nice run leading up to the news we're all hoping to hear!!

poodles

Helpneeded86 wrote: »

How would someone who has never invested in shares before purchase 1-2k worth? Could someone provide a fools guide?

Helpneeded, the easiest ways I can think of is to either set up an account with the likes of TD Direct Investing (can usually take a couple of weeks to set the account up) or it is possible to call into a Bank of Ireland or AIB Branch and they can purchase shares for you over the counter - bear in mind that they will charge anything around 100euro as opposed to a broke where it might cost your 20 euro.

poodles

New article from TheBull.com.au

Full Article here:
http://www.thebull.com.au/premium/a/32398-6-rare-earth-stocks-for-the-future.html


6 Rare Earth Stocks for the Future



What do LED televisions, hybrid cars, iPhones, aircraft engines, wind turbines, cubic zirconias, loudspeakers, commercial lasers, and cancer drugs have in common? All these products need rare earth element minerals in their manufacture.

Rare Earth Elements (REEs) have unique properties that are ideally suited for high tech products in a wide variety of fields, with energy efficiency applications seen as perhaps having the greatest potential. Currently China dominates the world both in terms of demand for REEs and their supply. The following chart shows supply and demand levels for China and the rest of the world from 2005 to 2015:

The most interesting prospect in the table is Greenland Minerals and Energy (GGG). While you may have seen references claiming the REO (rare earth oxides) at LYC’s Mount Weld operation is the largest in the world outside of China, that information may be out of date. A 2011 report issued by the United States Geological Survey (USGS) entitled The Future of Rare Earth Elements lists REO capacity at Mount Weld by 2015-2016 at 22 million tonnes while the Kvanefjeld site in Greenland is projected at 37 million tonnes.


According to Thompsons/First Call data there is only one analyst covering GGG with a STRONG BUY rating. Below is a two year price chart for the stock:



Greenland lags behind Lynas in bringing product to market, but the company’s progress to date is impressive. Originally a 61% owner of the highly regarded Kvanefjeld site in Greenland (which includes uranium deposits), the company recently reached an equity deal with minority owners and now GGG has 100% ownership. A recently completed Kvanefjeld Pre-Feasibility Study claims the site can be cost competitive with assets of rare earths and uranium with an NPV (Net Present Value) greater than US$4b before taxes. This projection assumes current prices for REOs and could approach US$8b should commodity pricing rise by as little as 20%.

The government of Greenland eased regulatory requirements in 2010 and the gradual melting of the permafrost could help with production costs.

With the ownership issue put to rest, funding is the major concern. A recent successful capital raising fully funded the buyout of minority holders with working capital left over. A Definitive Feasibility Study is underway involving licensing and environmental impact statements. The company has no debt so debt funding is an option and with 100% project ownership GGG could also take on a junior partner to raise the capital.

Geological surveys and product costs projections can be a difficult read for the average investor. But one thing we can all understand is management confidence in what they are doing as evidenced by insider buying. GGG’s managing Roderick McIllree recently paid A$59,000 to buy an additional 200,000 shares.

A Primal Nut

Dramatic stuff here, I was trying to invest through Campbell O'Connor via e-mail (the same crowd from which some people, including me, bought USOP though). They were processing it yesterday but no confirmation e-mail (of course the stock trades on a completely different timezone). This morning I seen the jump in price so I quickly checked my e-mail to see if I'd got the trade confirmation. Nothing. So I was a bit disappointed. However, just now I got an e-mail saying they bought the shares for me at $0.310. That'll do.

It's not every stock I buy that I already have an 11% profit by the time I found out I'd bought the stock.

Thanks for the recommendation Poodles, hopefully we'll get that ban overturned.

poodles

A Primal Nut wrote: »

Dramatic stuff here, I was trying to invest through Campbell O'Connor via e-mail (the same crowd from which some people, including me, bought USOP though). They were processing it yesterday but no confirmation e-mail (of course the stock trades on a completely different timezone). This morning I seen the jump in price so I quickly checked my e-mail to see if I'd got the trade confirmation. Nothing. So I was a bit disappointed. However, just now I got an e-mail saying they bought the shares for me at $0.310. That'll do.

It's not every stock I buy that I already have an 11% profit by the time I found out I'd bought the stock.

Thanks for the recommendation Poodles, hopefully we'll get that ban overturned.

No worries Primal Nut. Just happy to share the Greenland story.

Well done on your entry price too - 31c will look extremely cheap if and when the Greenland Government uplift the ban!

Looking at the order book over the past week it looks like we have turned a corner and shrugged off any overhang from the 30c placement.
I expect the SP to at least head back towards 40c where it was prior to the fund raising.

turbobaby

Today's rise must have something to do with the news that the State of Queensland will be permitting the mining of uranium. It gives the backers in Greenland a good reference point and can only be good for the hopes that the ban will be lifted.

The Queensland Government announced yesterday that uranium mining would recommence in the state, overturning a ban which has lasted since 1982.

Queensland Premier Campbell Newman said strong support for the uranium industry by the Federal Government had helped in the decision.

http://www.miningaustralia.com.au/news/queensland-to-recommence-uranium-mining

neil.p.b

Price movement has nothing to do with news, just playing out it's channel that's it been in for almost a year and a half. Hit upper line tonight and was hit with heavy selling, as to be expected - will need positive news to break and close above it to end downtrend.

http://www.screencast.com/t/gAfyA3Si

xertpo

neil.p.b wrote: »

Price movement has nothing to do with news, just playing out it's channel that's it been in for almost a year and a half. Hit upper line tonight and was hit with heavy selling, as to be expected - will need positive news to break and close above it to end downtrend.

http://www.screencast.com/t/gAfyA3Si

Are you planning to buy in Neil? I took a punt yesterday.

neil.p.b

xertpo wrote: »

Are you planning to buy in Neil? I took a punt yesterday.

I've been in and out already for 15% thanks to tonights early spike up. Thanks again to noodles for the tip. Will look to buy in again around 30c. Am purely trading it, have no interest in 'investing', although recent events (director buys, overplaced placing) are very encouraging for any holders, but i have no interest in holding anything long term (bar USOP) atm with the bearish signs of major indices.

xertpo

same idea in mind. I have my exit price set and then that's it. In and out.

We must be have USOP news on the horizon soonish.

poodles

neil.p.b wrote: »

I've been in and out already for 15% thanks to tonights early spike up. Thanks again to noodles for the tip. Will look to buy in again around 30c. Am purely trading it, have no interest in 'investing', although recent events (director buys, overplaced placing) are very encouraging for any holders, but i have no interest in holding anything long term (bar USOP) atm with the bearish signs of major indices.

Well done on the profit Neil.
I won't be trading GGG myself. My holding is spread from 36c down to 30c. I'm happy and confident to hold through the Greenland Governments decision on the Uranium ban.

Volume has increased significantly over the past couple of days compared to the past month and from the chart it looks like an uptrend is forming with the MACD's crossing.

I would like to see a gradual rise (no spikes) as we move closer to the Greenland Governments decision.

I've a feeling we will start to see more media coverage as the date draws near. Make no mistake, if the Greenland Government allow GGG to mine Uranium as a by-product of the Rare Earth then I can easily see a fair market cap of between $350m - $500m attributed to GGG based on their resource.

sb78

Hi All,

I've just joined boards.ie, having followed these threads for the past while. I too bought some stock last night after doing some research on the company for the past few days (I managed to get stock at $0.335). Thanks to Poodles for the useful links and everyone else for the great discussions. I intend to hold until at least year end in the hope that Greenland will lift the Uranium ban, and if that happens the stock has significant upside. Still, hard to blame those for taking profits either.

preempt

Hi Guy's,

I'm newly registered to Boards.ie and thought I'd introduce myself. I'm a fairly large holder of GGG and look forward to a lot of fresh interest in the Coy after the Greenland Gov meeting that's scheduled from 8th - 15th Nov. A number of recent articles have highlighted the growing interest in the Kvanefjeld project by Fortune 500 companies and especially a number of big Korean Coy's. Lifting the uranium ban will significantly derisk the project and an offtake/farmin agreement shouldn't be far away. At present, we are being excessively penalised because of the perceived risk, so any entry around this level should easily multi bag on a lifting of the uranium ban.

Failure to discover oil (despite a $1.2 billion investment in 2010-2011), has probably brought forward the necessity for the Gov to debate the question of the uranium ban sooner than would have otherwise been the case. Greenland are running deficits and reliant on Denmark to cover the short fall. If they are sincere in their desire to gain financial independence, the Kvanefjeld project offers massive tax revenue for many years to come.The scale of the Kvanefjeld project is enormous and will place Greenland in a very solid position.

preempt

poodles

More director buys over the past couple of days.
This time Anthony Ho and Simon Cato taking part in the SPP adding to their existing holding.

http://www.asx.com.au/asxpdf/20121029/pdf/429rrf1fz0rp1r.pdf
http://www.asx.com.au/asxpdf/20121029/pdf/429rmwgdqyx6y2.pdf


Also quarterlies out today:
http://www.asx.com.au/asxpdf/20121031/pdf/429vn9wspdxnlk.pdf
http://www.asx.com.au/asxpdf/20121031/pdf/429vyjc1w86v6y.pdf

The Greenland parliament have their last sitting of the year now and is due to finish up on 15th November. I have confidence that the Uranium ban will be uplifted and when it is, the SP should re-rate significantly.

poodles

I've uploaded the recent Bell Potter research report on GGG dated 24th September 2012 as it's not freely available online.

Their 12-month target is $2.32
Current Price is $0.31

http://www.filesend.net/download.php?f=bd9aadde10c7ea6dc0f113c6235abdb1

preempt

http://greenlandtoday.com/gb/category/last-parliamentary-assembly-before-the-next-election-392/

"- The uranium question will be proposed as a resolution with an upper limit for the content of uranium of 0.1% on all mining resources in Greenland."

Good news for GGG - as they have an average grade of around 400ppm.

0.1% = 1000ppm

preempt

In GGG's September presentation, they describe the Kvanefjeld project as "the world's largest rare earth resource with significant heavy RE endowment, and one of the world's largest uranium resources." (Ni 43-101 or JORC constrained)

If the Ni 43-101 and JORC resource is the largest....constrained tells me it is potentially a lot bigger than they are allowed to say.

langer91

i know this is a noob question but I am very interested in buying shares in this company. Never bought shares before so just wondering what is the best online stockbrokers to use? i cant find this company on the ones I have checked! thanks very much and again apologies for noob question

turbobaby

Langer, your best choice would probably be TD Waterhouse but it takes a few weeks to get set up, so you might not be able to buy the shares before the govt make their decision, good or bad!

Posters here should realise that this is a pure speculative punt, and if mining permits are refused, there will be severe selling pressure.

That said, this is exactly the kind of speculation I like. If my other speculative punt (also permit related) comes off, I will be getting involved here.

A Primal Nut

langer91 wrote: »

i know this is a noob question but I am very interested in buying shares in this company. Never bought shares before so just wondering what is the best online stockbrokers to use? i cant find this company on the ones I have checked! thanks very much and again apologies for noob question

If you live in Dublin the easiest thing is go to Campbell O'Connor's office in Temple Bar (they open at 7.30 which is handy if you want to go in before work) show them some ID, fill out a form and buy the shares there and then.

They reckon that by trading directly with the selling broker they can get a better deal than online.

A Primal Nut

I haven't been able to find much information about the Greenland Government meeting in November other than on this thread.

Is it guaranteed they will be discussing the mining ban and could they make a decision about it? Any links? Thanks.

preempt

See the link from 1/11/2012

Lachako

A bit of a novices question here.

What is the difference between buying the Greenland Minerals shares that are listed on the Australian Exchange and buying them on the US or Frankfurt exchange, as Greenland Minerals is listed on all of these exchanges?

If the price goes up or down on the Australian exchange will there be a corresponding realtive increase/decrease on the other exchanges?

Is it just a matter of liquidity i.e. there will be more of these shares bought and sold on the Australian exchange so it will be easier to buy and sell them in that market?

Thanks

preempt

From my limited experience, a lot of companies list on the Frankfurt exchange because of the fewer listing requirements. The US listing is enabled through broker sponsored pink slips. In the case of GGG, the ASX is the main exchange and offers far more liquidity. In most cases, the various exchanges find an equalibrium but in some cases there can be an opportunity to play the arbitrage created through currency fluctuations. I have done this between the ASX and AIM markets but in that situation, both markets offered sufficient liquidity to enter and exit positions easily.