ASX seeks answers after Greatland cuts gold output

Greatland Resources (ASX: GGP) is facing questions from the Australian Securities Exchange over why it slashed production and cost targets just weeks after its debut on the bourse.

The Western Australian gold and copper miner, backed by Andrew Forrest’s Wyloo Metals, cut its 2026 financial year gold production forecast to between 260,000 and 310,000 oz., down from the 300,000 to 340,000 oz. outlined in its prospectus. 

It also lifted its growth capital estimate for next year at the Telfer gold and copper mine to as much as A$260 million — more than triple the A$80 million figure disclosed before listing.

ASX move

The revisions, announced July 29, came barely a month after Greatland moved its headquarters from the United Kingdom to Australia and joined the ASX as one of the nation’s top five gold producers with a market capitalization of A$4.6 billion. The company said it had warned prospective investors in a Thursday letter to the ASX that updated guidance would come in the new financial year, adding that the information released in July was material to its share price, but not ready for earlier publication. It also dropped “Gold” from its name. 

“A reasonable person would expect the updated production target to have a material effect on the price or value of its securities,” Greatland told the ASX.

The miner also noted the original capital estimate excluded potential expansion of Telfer, located in Western Australia’s Pilbara region, which could extend the mine’s life. The company acquired Telfer in December and soon after bought out Newmont’s (NYSE, ASX: NEM; TSX: NGT) remaining 70% stake in the adjacent Havieron project for $475 million. As part of the ASX listing, Newmont sold half its holding in Greatland.

Shares fell as much as 4.8% on Friday before paring losses to close 1.3% lower at A$5.15. The stock has dropped nearly 24% since the guidance cut, leaving Greatland’s market value at about A$3.5 billion ($2.3 billion).