Paps this will bounce hard depending on the size of the blowout and finance options. As I said previously a 30/70 equity/debt combination will barely dilute existing holders. I'm still holding my tradeables from $1.23, however some of my friends were lucky enough to get shares at $1.15-$1.17. Compared to Atlas (AGO) Gindalbie is an extremely cheap alternative in my opinion.
Also those who think GBG are going to sell a large chunk of cheap discounted equity to Ansteel are severely wrong. The FIRB has not and will not allow Ansteel to own anymore of the Karara project (50%) and the GBG listed entity (around 36%) at present. Hence the reason GBG went to institutions for the previous placement. Ansteel was only allotted a proportionate amount of shares to keep its holding undiluted.
Regardless I am not happy with management. Disclosure is required in some shape or form to the market. A small paragraph in an investor presentation is not acceptable, especially if this results in a full capital raising (ie no debt) when the share price has been already decimated.
GBG Price at posting:
$1.15 Sentiment: Hold Disclosure: Held
