real value again

Below is my previous post regarding GGY Maitland Cu/Mo resource. With spot copper at US$8255 tonne and 27 month Copper at US$7710 a tonne and GGY's statement that they target to commence mining in 2009 (using 3rd party mill - KZL) will see this company re-valued (at least to what KZL paid anyway) but the capitalisation would be more realistic at 75-100M or 30-35c share (current capitisation ~25M). Watch out for the SP pending the resource upgrade due from Cube.



Post from 2 weeks ago:-
Notwithstanding current market headwinds especially for explorers, the upturn in the commodity price cycle is not just going to disintegrate, even if it takes a breather for a year ot two.

'Cerbera' you recently brought up that GGY had proven Cu reserves (prior to 2007-2008 drilling) of, quote "1.6 million tonnes @1.6% = 20640 tonnes copper which is US$163 million at todays prices" that is now about USD183M.

Now guessing the resource could be more like 5M te at 1.5% or somewhere in between, the resource would be worth USD600,000,000. This is shallow and can be easliy and relatively cheaply trucked to Kagaras facilities for processing, alleviating the high construction costs and time consumed building processing facilities - although paying for the privilege of using Kagaras (but lower cost of capital and early cash flow). There is also Moly credits to be considered (more added value).

GGY's capitalisation is today at AUD22M and they have shallow high grade copper valued at between AUD200M and >AUD600M + Moly Credits + surrounding prospective land + Citadel + Rum Jungle +++.

They have a tangible asset recognised by their major shareholder Kagara that valued their shares at >15c.

Forgetting the market turmoil for a minute this is well undervalued and the next couple of announcements (resource upgrade due in next 2-3 weeks) will disclose an upgraded resource and IMO a plan to mine in 2009 using a 3rd party mill.

A tangible asset, early cash flow and a smart major shareholder providing technical assistance, and the market values this company less than some companies that haven't even drilled a hole yet ! I believe the patient will be very well rewarded.