Cain Bore, GW and and the manganese were all exploration projects and, as we all know, the great majority of exploration projects don’t work.
It was pretty obvious from the initial results that GW was a duster, and I wrote that on this forum several times. The great majority of the market figured it out which is why the stock plummeted to 0.6/7c. I guess some people didn’t realise what the first set of results meant and were surprised by the news put out this morning.
The company has now changed tack and is repositioning to build a new mine services company. It is a completely different business model, is cash generative, and isn’t nearly as speculative as exploration. So you have to analyse the company in a completely different way.
There was a non-deal roadshow presentation explaining the new strategy, released to the ASX last month. The road show must have gone pretty well because the share price reacted very positively.
M4M Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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