Ann: Entitlement Offer to raise up to $8 million, page-164

Ive sent my funds this morning.

Following a stock down always feels a bit worrisome and one must always question if you suffer from confirmation bias.

Selling a stock on the rise is equally a bad mistake

So the million dollar question - is it a good ivnestment?

at 0.037 we are worth 506m shares x 0.037 = 18.7m

On share issue if we do not move further down as one would expect given that would be a loss for SPP participants, then the EV here is 10m

10m!

For that you get a company with 8.7m cash and approaching major milestones such as Concentrate Production, Pilot Plant, Offtakes





Whats that 10m potentially worth?

August 21 Feas Study suggests the NpV is $1b US or 1.54b AUD - or 154x the EV

Feas was based on Niobium price of 55kg - Current Niobium price? 41.5k a tonne of 41.5 a kg with a lot of upside




Lets say you invested 1k in this SPP, fast forward 3years , that 1k is worth ZERO or 154k - is that a good deal? I think so.

in 2011 Chinese Consortium of steelmakers took 15% of CBMM for 1.9b . 15% of a company producing 92k tonnes = 1.9b for 92k x 15% = 1.9b for 13800 tonnes or 137k per tonne of production

At Full production GBE produces 3,250 tonnes x 137k US = 447m at 2011 transaction multiples (Pre EV revolution) - that along is 44 times current EV.. 1k = 44k or zero in a few years.

Finally who are GBE's biggest shareholder? persons associated with steel = the right partners



The biggest risk is a cheap buy-out but if that was the case Bo Tan wouldnt have lent the money, and they could have taken this for peanuts without FIRB intervention due to bankruptcy.. Now that GBE is funded, FIRB is likely to block Chinese purchase especially inlight of this being the first mine in 50 years.


SO IF YOU ARE ON THE SIDELINES THIS MORNING - I urge you to consider this on risk-reward metrics, yes you can lose it all; invest what you are prepared to lose and diversify diversify diversify. But having supported this company thus far, it would be silly not to throw in a few extra bucks for what opportunity awaits. Equally if you chose not to, then not to worry, you investment has legs and the company already has irrevocable commitments for the shares you choose to not buy.... Why i want you everyone to take up their ownership? Because we need more liquidity on the ASX which can only come from more retail holders.

IMO DYOR