value - in the eye of the beholder???

G'day all, from a shareholder viewpoint, the management are incompetent because the sp went down and you didn't make a quid out of it.

From a producer viewpoint, the management is also incompetent because the outcomes thus far in terms of expenditure and time, the earnings are not looking real good and perhaps could be regarded as abject failure. This becomes more so, if it is considered that the expenditure allocation on the first two wells be regarded as production expenditure.

From a shareholder viewpoint they are also incompetent for not providing good anns and for their failure to properly explain operational delays and all this being underlined by lack of clear forward plans.

From an exploration and operational view point things may look a lot different.

Directors have purchased an O&G block for $3m and the cost of drilling 2 wells - some $40m. If the updated resource turns out to have a market value exceeding $100m - the directors don't look too silly.

The Iron Ore range was never going to be mined by GDN. The outcome of the sale of this for $3m down on royalties and then about $2 per ton for every ton sold from the tenement doesn't look so stupid either, particularly considering the size of Cliffs and IF production starts in the next year or so with some 5m or more tons sold per year???

There might be some questions on the wisdom of having moved to production with #pb3 without substantial capital to tide them over if the venture is not successful. BUT it appears that they were careful not to get the business in debt in the process, which allows the show to live another day. A business does not go bust if it has no debt!

The directors need to consider share holders and their sentiment with regard to anns and also decide if they want to be explorers or producers. If explorer, they may have done a good job. If producer, they have fallen on their nose.

From an operational viewpoint they have been prudent to remain debt free but have not sufficiently considered that funding for development is dependant on happy shareholders.

I would suggest that any company in their current position, with a book value in north of 30c??? per share and an sp of les than 3c - the penny will drop sooner or later that a review is required as to where the ship is headed.

Talk of "DEAD" is stupid because they have cash and valuable resources which have a market value - but requires moves to let the market see it.

We can expect - from a common sense viewpoint - that the current situation will be dealt with soon.

I continue to hold an buy because of the fundamental value of GDN - book value of the business backed up by "NO DEBT". Critics might claim the field is worthless, but if the open market values it - then that is the sale price and must be reflected in sp - the same goes for the royalties.

May still be very good days ahead!

MHO of course and DYOR.