Riddick is right, GBG is the standout play by having the least risk, significant finance backing and potential tonnage. None of the others have the resource to produce a long life mine, why do you think that Oakjee is so dependent on Karara?
Most of these juniors struggle to reach 150mt of DSO with high impurities @ less than 60% fe. These types of products are NOT competitive with the majors - BHP and RIO in Australia. BHP/RIO are planning to produce around 600mtpa of HIGH grade >60% fe with lower impurities. HOW will companies like MGX, AGO, and MMX compete?
BHP/RIO DSO:
-Surperior product
-Costs significantly less to produce
-HAVE PORT ACCESS to get it seaborne
MMX, AGO, MGX, GWR, etc etc (the list goes on) can't compete with DSO!!
GBG is magnetite, it will not be competing with BHP or RIO (mainly). GBG's quality is exception and compares with RIO's pellets and Vales. Karara is a world class resource in size, and quality. No other hopeful offers this.
Gtsman check out the proposed margins for GBG's Karara. The lastest presentation shares some light on this matter - its a highly profitable operation. There is a significant misconception with magnetite in Australia. It is profitable and has been used for decades in other countries.
GBG will not present as substantial returns as some, however unlike the others its almost certain to reach initial production @ 10-11mtpa (the JV means we are entitled to half of that). GBG's fate beyond 14mtpa is dependent on Oakjee which is a risk. Although the risks associated with GBG are significantly less than the likes of GWR, BRM, MMX, etc etc.
I have a little over $200k invested in GBG which is significantly more than a "mum/dad" 5-20k investment/punt. I am confident I will see a significant return on my money.
A full year of Karara production could easily justify a low to mid $3 share price. Oakjee confirmation could rerate this even further.
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