Many Australian companies have done the same. Often Australian resource juniors who have projects overseas are little understood by the Australian market. The same can be said for various types of commodities. Australians know iron ore, coal, gold, copper, nickel. They tend not to value other commodities - silver, PGMs, specialty metals etc. Other markets such as the TSX and the AIM have a greater interest in assets in Africa, Latin America and other regions.
And if GBE is able to extract value from their exploration assets by floating them on the TSX (so, partly monetizing them), then that has to be good for GBE shareholders. Currently, our market values these assets at less than zero, and even values Kanyika at less than zero. (I suspect by the time of the listing, there will be more significant intercepts from Mount Muambe - they seem very bullish about it, and with good reason).
And as for Kanyika - if they need to streamline the structure of assets to bring in a Chinese offtake partner/financier, then that makes good sense. Chinese steel mills will want the niobium, not the rare earths. (and that is not an indictment on the value of Mount Muambe and other prospects, simply a question of what business they are in).
It says to me that GBE's board is looking at ALL alternatives to try to maximise shareholder value in what is a poor market. My only hope is that the market conditions are good enough for a new listing when the time comes!)
Yaq
GBE Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
