Greatland Resources: A Top UK Momentum Stock for 2025

Gold prices have cooled slightly after a stellar start to 2025, now sitting at $3,312 per ounce, down nearly $200 from April’s record highs. Yet, this dip appears to be a short-term correction driven by profit-taking, making gold mining shares like Greatland Resources (LSE: GGP) a compelling opportunity. Up nearly 150% this year, Greatland deserves serious attention from investors seeking UK momentum stocks.

Recent data from the World Gold Council signals renewed appetite for bullion. Global gold-backed ETFs added 75 tonnes in June, rebounding from May’s 19-tonne decline, with total holdings reaching a 34-month high. This resurgence underscores gold’s appeal amid economic uncertainty, geopolitical tensions, and expectations of declining interest rates and a weaker US dollar.

Investing in gold-tracking ETFs offers a straightforward way to ride rising metal prices while avoiding the operational risks tied to mining stocks. However, owning shares in producers like Greatland can amplify returns. As gold prices climb, miners benefit disproportionately because their core costs, such as labour and equipment, are largely fixed. Greatland’s projected all-in sustaining costs (AISC) for 2025, ranging from $2,100 to $2,250 per ounce, sit comfortably below current gold prices, leaving ample room for profit margins to expand.

Analysts share this optimism. In a recent note, Goldman Sachs forecasted gold reaching $3,700 per ounce by year-end, driven by sustained ETF inflows and central bank purchases. These tailwinds could propel Greatland’s share price further, especially given its forward price-to-earnings growth (PEG) ratio of 0.1, well within value territory.

Beyond the near term, Greatland’s ownership of the Havieron project in Australia, a site boasting 8.4 million ounces of gold equivalent, sets it up for long-term success. With first production slated for late 2027 and a definitive feasibility study due by December, the asset could significantly boost profits. However, risks remain: disappointing study results, higher-than-expected costs, or delays could dent investor confidence and trigger share price volatility.

Despite these uncertainties, Greatland’s fundamentals and the broader gold market dynamics make it a standout choice. Investors looking for momentum and value in the UK market should keep this stock on their radar.