gbg - an acquisition target for ansteel, page-7

From the article:

"Investment thesis

It looks like Gindalbie Metals is trading quite cheap compared to the NPV of the Karara project. As I proved in this article, the after-tax NPV6% is more than double the current share price, so Gindalbie is trading at a very nice discount to its net present value.

Unfortunately, any investment in Gindalbie would have to be a long-term investment, as it's unlikely any substantial revenue stream would flow from the Karara-subsidiary to Gindalbie, as I think it will take at least 10 years to recoup the initial and sustaining capex. Because of this, Gindalbie investors shouldn't be hoping for a dividend anytime soon.

However, I think there's a good chance Gindalbie will get bought out by AnSteel as I am quite sure AnSteel would love to consolidate the ownership of the Karara project because it produces high-grade iron ore with superior qualities."