Down 51% in a month, the Greenland Minerals (ASX:GGG) share price is still sinking

The Greenland Minerals (ASX:GGG) share price is down 15% today amid government opposition to its Kvanefjeld Project.

| More on:
man bending over to look at red arrow crashing down through the ground

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Greenland Minerals Ltd (ASX: GGG) share price is falling again today after the latest news of the company's dealings with Greenland's new government. The winning party of Greenland's recent snap election is determined to stop developments at the miner's Kvanefjeld Project.

At the time of writing, the Greenland Minerals share price is down 15.24% trading at 8.9 cents.

Let's take a closer look at today's news from the rare earth miner.

New coalition formed; Greenland Minerals future still unknown

Today's news comes in an update from the company on its battle to keep progressing the development of its Kvanefjeld Project.

The company says there are reports that a coalition government, made of Greenland's Inuit Ataqatigiit and Naleraq parties, has been created in the wake of the nation's election on 6 April.

The miner states it will begin discussions with the Government – whose leadership has declared its intention to stop the development of the Kvanefjeld Project.  

The BBC reported the snap election was initiated after a huge public backlash of the project caused a collapse of the previous government. 

The former government had supported the development, saying it would generate hundreds of millions of dollars annually for the country. Thus, allowing Greenland greater independence from Denmark, of which Greenland is an autonomous territory.

Always a wrangle

Greenland Minerals has been operating in the nation since 2007, when it first acquired the mine site.

Since then, the company has applied for an exploration licence, which it's still yet to receive.  

A multi-year investigation concluded in December 2020, when the former government approved the company's environmental and social impact assessments.

Greenland Minerals was then to begin a process of public consultation, which quickly became its undoing. The public consultation was originally scheduled for completion by June 2021.

Now, the future of the project is in the hands of a government seemingly determined to put it to bed.

Greenland Minerals share price snapshot

The Greenland Minerals share price has been plunging on the ASX lately, with the latest news adding to its collapse.

Currently, the Greenland Minerals share price is down 51% over the last 30 days.

It's also down by 68% year to date and 12% over the last 12 months.

The company now has a market capitalisation of around $140 million, with approximately 1.3 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person handing out $50 notes, symbolising ex-dividend date.
Broker Notes

Where to invest $20,000 into ASX 200 shares

Brokers think these shares could be top picks for Aussie investors.

Read more »

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Woman in celebratory fist move looking at phone
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Share Market News

Record CBA share price and blockbuster merger push ASX 200 financials sector to the top

ASX financial stocks led the 11 market sectors last week with a 1.95% gain.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Market News

CBA Shares in focus: How Australia's most valuable company is using AI to compete

Could AI initiatives drive CBA shares higher?

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Looking for big returns? Brokers think these shares could do the job.

Read more »

asx share price represented by cartoon letters spelling the word FOMO
Share Market News

What did Macquarie's "FOMO Meter" reveal about the stock market in May?

Is the market getting frothy or is there still room to climb?

Read more »

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »