anz seize grkoa

Alright P'Dex, I'll try that moderated post again, without the offending external references.



Lemas referred to the GRKOA that ANZ have seized, and the liklihood that they have acquired an extremely low value asset.

I agree, but with GRK last trading at 9.8c, it's not worth selling the options at 0.1c - they present enormous leverage (albeit at enormous risk), and to even sell a minimum parcel of $500 would set you back 500 000 GRKOA.

This 'Investor Presentation' seems like a pathetic, last-minute attempt to gather support for the SP. The O.D project is not poised to deliver the efficiencies required for competitive production, with a target temperature of about 180C @ 5500m (the actual target depth management have mentioned on two separate occasions).

I've held GRK simply to gain exposure to the sector, though the Olympic Dam project remains, in my opinion, relatively unattractive (180C @ 5500m is the drill target I have discussed with management on separate occasions), and the market does not seem ready to place a value on the early stage projects within the sector (such as Spencer Gulf).

My guess is there are no surprises to boost the SP before option expiry - if there were, the director would not have been able to make his recent on-market purchase of FPOs. Notice the the timeline in the presentation - drill first well in 2009..... looks like they expect to be waiting a while.... bugger!

Under normal circumstances GRK would be a decent buy at these levels, however, with the SP retracements across the sector, *much* better value can be found elsewhere.

I'm sitting on a million worthless options, so fingers are crossed (and losses booked), but I am not labouring under the pretension that GRK are going to pull their finger out and secure a deal before the 11th.

Aside from the criticism I needed to vent, several aspects of the company remain very attractive from an investment perspective, including the Patchawarra and Spencer projects, and the expertise offered by Dr. Jorg Baumgartner.

For the future, the Spencer Gulf project should support at least the current mkt cap once the sector is boosted by success at Inamincka (particularly with the upcoming pilot plant construction). Whilst very early stage, the need for desalinated water could see geothermal as a primary producer, and the location of the Spencer Gulf project is ideal for this purpose. As has been speculated by others on the GRK forum, BHP would be able to significantly reduce their emissions profile by sourcing their water from the GRK Spencer Gulf project.

It's a hard fate for these GEO companies to see their options trade on the cusp of being exercisable just as expiry date approaches. GRK need the money.