There's an article in today's Sydney Morning Herald on iron ore which highlights why this proposed scheme is such a stupid deal for GBG shareholders in the current iron ore supply/demand environment. Specifically, Chinese port stock piling levels suggests that Chinese demand for iron ore is not abating and supply cuts due to tailings dam failures will not be reversed in the foreseeable future. Further, it looks like there may be a supply squeeze on higher grade ore, so the premium for higher grade ore could increase.
DYOR, but I've already vote against the proposals.
GBG Price at posting:
2.7¢ Sentiment: Hold Disclosure: Held
