Point taken about the meeting being held to discuss specifics, it was not a general meeting, however, I feel it would have not been a great challenge for the directors to spend a little more time chatting to the shareholders. The questions asked by shareholders were, imho, all reasonable, sensible, and well intended. A little pr goes a long way. And my apologies to G. Dixon, when I saw him rush down the stairs I wondered if he was late for another appointment.
major: there was no discussion of the number of shares on issue, nor any discussion directly addressing shares as such. My feeling was that everyone there had work to do, and wanted to go and do it asap. Understandable, but as in my first paragraph, a little time spent with shareholders can go a long way. [The reason for the large issues of shares to directors? Maybe for no other reason than that they can. We live in an age where directors and execs receive large payments, sometimes they are worth, and sometimes they are not worth the payment.]
G. Dixon did state that he had received a phone call from a US fund manager who told him that the fund would be interested in the new combined and bigger company, where as before GBG was a little too small to attract attention.
I hold both GBG and SDL. Overall, I believe that from a mining perspective, the merger will mean little. I cannot see any great synergy between a mine in WA and a mine in west Africa, however, from a financial perspective a different picture emerges. There is a long term growing demand for iron (and unlike nickel there is no substitute :) ). A larger company, with mines close to both China/India, and Europe/Gulf states, will be better placed to service these markets, and to compete and handle itself on the world stage.
I have read the various questions and statements on the two boards. My feeling is that we know too little to make definitive judgements, also, to conclude that the merger will be a disaster for either or both companies is unjustified. If nothing else I am sure that the directors will not want their substantial packets of shares to drop in value!
The bottom line is that both companies represent new sources of a much sought after mineral. In the medium and long term both companies (or both combined) will do well. I am in both for the long term.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
