Hi Denial, I'd suggest more than one broker (out of the 4 that were once following GBG) would consider GBG a takeover target.
I've also previously suggested that GBG was a takeover target for a while now, along with the probability that in the medium term, not much short of a takeover would turn around the shareprice. Goes either way- ie. GBG will be a target- or the bidder.
While the low market cap is surprising to a degree, it doesn't take much thought to figure out some of the factors when GBG is at least 2 full yrs out from major production and running well behind their original hematite mining start dates.
Consider the following though- * GBG has a completed and very solid BFS. * They have a partner with deep pockets. * Because of their partner, they have no finance problems * Nor any sales problems. * Transport is not an issue for a number of years. * Not much bar the Gov't approvals stand in the way and from all accounts I've read, the approvals seem very likely, especially for Karara, and even for Mungada which is recognised by the Gov't as a linchpin of sorts for the Karara project to be able to flow smoothly on from. * Gov't refusal for Mungada will have GBG screaming that the Karara project is in jeopardy. * Ansteel will join the screaming match too. * Gov't will re-assess any negative environmental decision. * Ansteel unlikely to change the terms of the JV just because of a change of ownership- they still need the ore for their current growth plans
Considering the above positives and the currently low market cap, I suppose why wouldn't GBG be looked at by larger IO producers?
Very little headache for not much bucks. Unlike the proposed SDL venture.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
