a future indication of what gbe is worth, page-4

Thanks James07, but I think once we factored in the CAPEX of 180 mil and consider the grade differences as well as the ore reserve, the value of Kanyika will be lower by comparison. Kanyika alone should be worth around 200 mil depending on the price of niobium. Independent broker valuate an NPV of around 170 mil with LT niobium price assume at $45 per kg. (we have average grade in Kanyika around 60Mt at .29%to.41% as compare with CBMM of 460Mt at 2.5%to3% grade).

I luv to value GBE at 3.55 but reality they are not worth that much atm. We are indeed trading at massive discount atm. Having said that, I'm not saying is not possible for GBE new management to achieve 3.55 in coming years. We still have a few wild card on hand, HREE in Machinga, Mount Muambe with flourite and Salimbedwee. A lot of this wild card is only at the early stage of exploration so the upside is enormous. Not to mention if Kanyika reserve can be upgraded again when commencing production 2013.

The critical also to remember is the amount of cash we are sitting atm, it's really up to the management on how they want to direct the future of GBE. GBE need to preserve as much cash as possible next two years to avoid anymore dilution while maintaining the wild card exploration. Given the slowdown and uncertainty of market in coming months perhaps years, having a good size of cash on hand will enable GBE to seize any new project opp arises in Africa when is needed.

Cut short, 3.55 is fantastic and hope GBE is heading that direction but for me I'm not greedy, I will be happy man if SP is back to where ECE paid. That will be a good start for me!!


Cheers all