sp = cash position minus ~20%, page-9

I've been quiet for a while (vacation, work, etc), but some of the nonsense being posted here and concurrent GRR threads needs correction. I suspect a few posters are just shorters baiting.

A couple of folks corrected one wayward comment that GRR's ore will deplete in a few years.

Is GRR's sp undervalued? Yes, according to Mehan on ABC radio last week: "The market, in certain periods, tends to overreact ... We've been producing and selling our pellets, we're getting a good price for our pellets, we've been getting our long-term mining plan executed in terms of opening up new mining faces, so we certainly see that in terms of our current share price that we've been oversold."

Will GRR survive with IO at $80/tonne as Goldman Sachs' UK office predicts? Possibly. Mehan stated on BRR last week that costs are down to $100/tonne and he aims to further reduce that cost (to $90/tonne?). So, even if pellets command only a $15 premium, GRR would break-even.

Keep in mind that Goldman Sachs seems to change its commodities predictions (e.g. gold) about as often as it goes elephant hunting (i.e. trying to skim big profits off its clients) -- i.e. frequently. Meanwhile, others estimate IO will average around $110 to $120/tonne.

Further, JP Morgan recently raised GRR to "buy" and identified GRR as "the cheapest play in the mid cap iron ore space." (i.e. GRR is oversold).

Bottom line is that GRR is risky (IO prices are volatile), but its sp seems to incorporate that risk as well as a dose of irrational fear.