GBG should get into gold. Everybody is talking lithium, but in Australia we have really good skills with gold.
Iron ore is oversupplied and GBG does not get the premium for the processed product - $2.5b and we get $US5 extra at the moment. And grades are still well below the 68% which was originally touted.
Has anybody thought of suing the design engineers?
PNR bought into the BNR gold mine (first to 80% and now 100%) and have got Nicholson mine up and running and now producing gold - in line 30,000ozs in the next year but grades are going gangbusters. And PNR borrowed the money to get going - about $12m.
I expect the Nicholson to have 0.75 to 1.0 million ozs in the next little while. And that will give $800m profit!
GBG had $38M sitting in the bank.
There are lots of little gold miners who are desperate for money. With some astute investments GBG could get back on its feet again.
If Karara goes well, that's a bonus, if it goes down the tubes, so be it.
But don't let's not sit down doing nothing.
GBG Price at posting:
1.8¢ Sentiment: None Disclosure: Held
