six bagger in the next six months if ..., page-15

A few more comments if I may:

- Take a look at handful of significant share holders eg. Sandstone Securities. According to www.tradingroom.com.au announcements, going back a decade, Sandstone have only invested in a few penny dreadfuls and appear to know what they are doing. One example is getting a sizeable amount of MNR shares just before they took off and getting out a short time later.

- Stocko, the size of GIP's deposit is not known exactly as drilling has not touched all the sides and bottoms, so to speak. However, my understanding is that a limit can be fairly roughly determined under normal circumstances by the geologists involved examining the structure of the surrounding hills.

- The off-take agreement announced the other day took me by surprise in its timing for my understanding was that GIP was going to wait until the BFS etc had been finished (with pilot plant results included this time), in order to increase bargaining power. It's important to understand that the just announced agreement covers only part of one of the minerals which will be available and only for a few years. The more such agreements which can be signed up, the more material will be mined in a faster time and the higher proportion of it which will be sold, thus dramatically increasing profits.

- GIP is not a one off proposition. At least four different minerals will be coming on stream from the one deposit if the mine goes ahead (because of a contract for either the feldspar and / or the tantalum). The less important tin and quartz can be sold on the open market without a contract and there will be relatively little waste material. The possibility of value adding exists and GIP has more than one mine, although only the Red Sea one is of note at the moment.

- Many will be wondering about potential sells off from those who got in on the recent placement. I can only say it hasn't happened yet and I for one am holding in the hope of an outsized return next year. I even bought a few more the other day. After all, this small cap. company is talking about being the world's second biggest supplier of tantalum and one of the biggest of feldspar (and at above average quality with very low radioactivity), in a part of the planet where such world class operations are thin on the ground to say the least. As for dilution due to mine funding, only time will tell, but my understanding is that should be much less of a worry than most such situations. This is not a UCL.

I've been watching this stock for years and think that if the company pulls this one off, people will look back and wonder how on earth they missed it, because it's such a simple situation now has confirmed customer interest. It just seems almost obvious to me that it will do well, as long as the backers and everyone involved directly with the company are telling the truth and there is just a little luck on their side. In a previous post in this thread, I've tried to show that what looks like a similar situation to me (LAF) was effectively valued by the market at well over ten times what GIP was (market cap. and NPV). Perhaps one of the things LAF has which would help GIP is institutional backing? Whatever the case, it will be interesting to see how things pan out in the next few months, for GIP is finally moving into a position after so many years to test the market's interest for real.

Last and not least. In situations where I have put in a lot of time and effort on a stock and plan to commit much more than play money for myself or others, I generally try to contact the main director and be somewhat "flustering". It's normally obvious on first contact whether they are willing to pay shareholders the time of day and have their interests at heart. If not, I've found it to be a bad sign most of the time. In this case, my emails were even answered on weekends when the MD was out of the office and a long STD call was returned at his cost during the week. Of course that was during a time when GIP seemed almost friendless in the market and the business was quiet, but it all added to the points awarded.