trading 20% below cash value - ev minus $8m, page-5

In the interests of balance, it is probably worthwhile stating what negatives there are about GBE and its likely share price performance:

- it is entirely possible that GBE timeframes are longer than the market's shorter-term focus. The share price could stagnate right up until the BFS.
- In a weak market, even strong drilling results can see a small bounce, and then the price returns to prior levels
- With the Chinese having such a strong share holding, this may be viewed as a negative. There is little possibility of a takeover and so GBE and ECE are in it for the long haul.
- the cash position will come back as money is spent on exploration and corporate overheads. So whilst there is a significant gap between the cash position and the mcap, that gap will narrow over time.

Even these points notwithstanding, I still think the downside is minimal, and a moderate amount of upside is highly likely and over a longer timeframe a significant amount of upside is also likely.

ECE thought GBE was worth 3 times it current price, hence their investment. I tend to agree.

Yaq