Ann: Gulf Capital Raising Update, page-25

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HarleyRider

158 Posts.

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06/10/17

12:59

Post #: 27712833
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Originally posted by rocket973 ↑

Concerncitizen, the reason why I researched GMC was because I was an interested as a possible investor. However, I don't invest my money unless I fully understand the project. I've been deceived too many times over the past by the spruiking by management who in many cases shouldn't be running ASX companies. I've been operating/owning a company for 40years in manufacturing and leisure/tourism. Frankly, I'm sick of losing money in the stock market due to the incompetence of many Australian CEO's, and in my opinion many Aussie Directors would be better off on the dole than operating an ASX company.
Back to GMC.
If you say the smelters purchased are the 2 x 7MVA. GMC haven't clarified in an announcement which furnaces they purchased and since I've only read the fact that the smelters were the 2 x 15MVA on Patrick Ryan's blog then its possible that its not correct. However, I do add that Patrick Ryan is maybe one of the most informed Ferro alloy analysts in the world and the founder of Ryan's Notes. Google it if you don't know it. I've had extremely good info from Mr Ryan during a takeover of a $1 billion manganese company in 2007. ie ConsMin. Dare I say I've also had contact with EX ConsMin CEO Michael Kiernan, who was once a GMC Chairman. Frankly, I don't have much respect for him.

However back to the 2 x smelters that GMC has purchased. If you're suggesting that the two smelters purchased are the 2 x 7MVA smelters, then I'd say that these are the original 2 x 4MVA open arc melting furnaces that were upgraded to 7MVA.
These are the original furnaces purchased in 1964.
I don't hold much credence in "part of the agreement to supply Transalloys (Renova) with 30ktpa of high-grade manganese ore, as well as marketing rights to 60% of the eventual smelter output ".

Been in business too long to take any notice of that BS, you have to produce manganese alloys first before any agreement is implemented. Why would Renova want Mn from Indonesia, South Africa has the worlds largest deposits at the back door. I'd like to see the contract, has GMC shown the actual contract?

Good to hear that you're digging a little deeper. Sometimes its a good idea to sit back and find out the facts.
1) 2 x 7MVA furnaces that are 53 years old
2) electricity/power at US$0.11c/KWh, possibly the highest cost power for a smelter operation.
3) the fact that it costs a minimum of US$200 million to set up a competitive ferro/manganese smelter. GMC thinks that 53 year old furnaces will do the job.
Its almost laughable, except for the fact many investors put their money in and hope for a reward.

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If you want the history of PT. GMG you should talk to me

GMC Price at posting: 0.6¢ Sentiment: None Disclosure: Not Held
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