do u think gbg and ansteel might t/o sdl ?, page-11

For a company to takeover another company they would need actual cash or great banking relationships. Maybe I am wrong but I don't think SDL has any cash or a bank in their right might to lend them money. If they did they would develop their prospect in Africa. Instead they tried to sell their project.

This appears pretty common in the ASX companies, lots of junior minors wanting to develop, but they have no cash/expertise. So they pray that somone buys them or a JV to actually turn into a producer.

The only takeover play for GBG is ansteel, which I believe is beneficial to shareholders. Everytime we raise cash we have to goto the equity market which is the highest cost of financing (see gindaldan post). If Ansteel took it over they can work through any cash flow / production issue with their cash or ability to raise debt/bank loans.

If you lost money consider it sunken costs, you need to look at it from today forward. The market today reflects an expectation of a large increase in supply over the next few years. You have producers essentially doubling their output, so why in the world would the price of iron ore stay at the current price (I hope you understand supply/demand curves). Goto this website to get an idea of supply: http://www.australianminesatlas.gov.au/aimr/commodity/iron_ore.html

So while everyone does their valuation off today's price the forward curve unfortunately might be a lot lower. You need to estimate the price in each of the future years it is in production. In a poor scenario iron ore drops back to ~80. Well don't forget alot of prices are assuming freight and we are selling FOB, which means subtract off the cost of freight from that 80 bucks, then add on the 20% premium. You might get to a position the company produces and sells ore at the same price. Look at the current US coal companies (high debt and falling commodity prices) for an example of a once booming industry reduced to shreds.

I am an owner of GBG, but lets all be cognizent of what happens to a highly leveraged company if iron ore falls, cause cost to produce sure won't move.

BTW the purcahse of shares by that director meant nothing to me, that level of dollar flow is insignificant. This company will move up/down with production coming on board, but to a larger extent where this iron ore market goes.