Can we take a poll on whether we see this as positive or negative for GBG?
Just answer positive or negative with a short reason please?
For some background, this is how I see what will happen.
All current GBG shareholders will have their share of profits from Karara and Mungada reduced from 50% to 17.5%
They will also have their share of Lodestone and all their other wholly owned prospects and tenements reduced from 100% to 35%
In return, they will be getting a 35% share of whatever SDL comes up with?
GBG are exchanging 65% of our company in exchange for a 35% stake in an early stage prospect in West Africa basically.
In contrast, SDL is gaining a share of known profits with financing already negotiated, in return for 35% of their unfinanced, unJORC'ed, prospect.
GBG projects are virtually on the go. SDL's haven't really even started.
It's very much like risking the bird in the hand for two in the bush. It's a toughy, and the market is not sure about it still.
We can imagine great wealth from this deal, but at this stage, we are not privvy to the information that would confirm this.
Harlee 7 earlier suggested a $30 shareprice in the future, very nice, but that entails GBG attaining a market cap of around $45 Billion.
With Ansteel taking 50% of Karara profits and surely some other JV partner needed for Cameroon, taking their share, it is most unlikely we will see a $45 B market cap.
It comes down to this, we really have to trust that GBG board and management know what they are doing in this deal.
I'm not really sure either way but tend to feel more positive than negative about it.
Please voice your opinions again.
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