GBG is expected to pay a dividend in 2011 according to Southern Cross brokers. This will now be seriously diluted with Sundance shareholders aboard. Sundance has an unproven resource in a part of the world known for political instability and also nationalising resources. GBG has worked hard to put together a good deal with the Chinese. It has a proven resource in a stable country. GBG says it is looking long term but according to its infomation it already had a mine life of 20+years. I personally have been invested in and believed in GBG for a fair number of years now. Is it to much to ask for a reasonable return now.
Wouldnt it make more sense to get WA running first then look to expand. Apparently GBG shareholders do not get a vote on the merger. Only Sundance holders and they would be mad not to vote for it as the merger appears highly skewed in their favour.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
