Dismiss the headless chooks please.....
I don't think many people here are understanding this deal at all. I bought GMC on volume, I crunched some numbers last friday so I decided to hold. it is on their website homepage.
The project cost is $60M but the value is 160M USD
Pak Marthen is not paying a premium he is buying at a 30% plus discount by paying 17M for 15% stake
160M X 15% = 24M actual value. Mr Marthen is saving 7M that is why I believe he jumped on the deal apart from his moral obligations to his community.
Sure he may have a great heart for the people in the area, but he is a businessman and not going to throw money away and pay full price for anything.
USD 160m = AUD 209.5m [today]
We have to wait for the announcement, if we see a green light and Mr Marthen has handed the deposit GMC is destined for a firm Mcap between 200M and 250M AUD.
The first 2 smelters will be bringing in revenue soon putting GMC's expected profitability forward by 100%. (GMC initially planned only to buy 1 smelter not 2 in 2016) So their project forecast has been brought forward substantially.
Who knows, maybe the will offer Mr Marthen more than 15% in the future, pushing them years before target schedules…
time will tell.
Dismiss the headless chooks please..... I don't think many...
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