I know it has been talked about previously and mostly disregarded for good reason at the time, but this company seems to be at high risk of takeover atm. Construction is very close to being completed and first development ore will likely be seen mid Q4 and yet market cap remains at the 85m range.
There are plenty of mid tier miners with cash but deflated share prices due to inflation and rate hikes, and MandA activity is increasing recently.
The appeal for a cash flow positive project that is already built with an NPV of +200m (for G1As share) yet trading for 80m is a very nice discount (even ignoring the exploration potential).
The factors preventing a takeover would be the fact that 70% of G1A is held by the top 20, with the largest holding being 21% potentially creating a fight for any would be buyer. As well as toho getting involved to secure their asset.
Also the risk for a potential buyer to buy an undervalued lead asset and that also reflect negatively on their price is likely. Though if you're simply interested in gaining a cash generating business on the cheap G1A is looking good. And everyone has a price, which I'm sure for the big holders is a lot lower than the rest of ours.
Now I'm no trading analyst so prehaps someone with more expertise in that area can chime in but if we look at the current traiding there seems to be a constant flow of 1000 share trades (bots prehaps?) That seem to be keeping the price within the 16c range and below, also the posting to 600k shares at 20c looks like and artificial wall. So is someone trying to accumulate and keep the price low for takeover? Maybe management already know about this prehaps not but they had better do all they can to reduce the risk of takeover as it seems more and more likely.
I'm sure there are some people who would be happy for a takeover, the average premium for a mining stock takeover in aus is ~60%, at 15c share price that would be 24c, a very healthy profit if you bought at 13c but considering this stock could pay out 2-5c per share dividend long term seems like a slap in the face for the rest of us. (And that is probably best case)
Maybe I'm completely wrong but I would very much doubt there aren't any firms at least looking at G1A as a potential takeover target. Only time will tell.
IMHO, not financial advice.
(20min delay)