Hey Red, cheers for the reply. Very much agree with you about FFRs future prospects of a stand alone project (though of course, anything is possible. But then, frustratingly, I also agree with you about GCY. Nothing can be done about the past issues GCY went through I guess.
CMM is a real eye opener, in the sense, that its really showing just how valuable a strong board and project are (versus a plethora of companies with one or the other, but.... not both). Regarding the $40m purchase they made. I definitely think its both. Hopefully, the merged board will be getting close to the same pedigree as CMM.
Grade is indeed key, especially when it is pretty much the only variable that can be changed for GCY. I do think there were other options, but... none quite as low cost as FFR, hence the deal. I do take your point about GCYs sketchy past, or... at this point, grade inconsistencies (the new board has basically removed any taint from a staffing perspective).
I strongly agree with you about the plants value. It really blows my mind, considering that CMM just spent almost $200m building their plant (though it is a little bigger). Or BDC plan to spend $230m to build their plant (smaller than Dalgaranga). RED is building their plant, which is going to end up costing almost $300m!! Even RRL have plans to build in NSW, and some project its total costs will hit $400m! Yet... here we sit with an E/V of around $70m. hmph.
I do appreciate your view that FFR are getting the better end of the deal. Perhaps if they had been able to prove up more ounces, the deal might have been a little more even, but it is what it is.
We are all 'experts'
GCY Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
