In theory Genesis is an new up and coming gold producer. They have the gold resource, a plan that should work and one of Australia's most astute gold investors backing them - Michael Fotios. Fotios was known for backing the NST team back when he first invested in them, not for the assets they held, but for the team of individuals that he believed in. I am assuming that he has invested in GMD for the same reason.
The stock price is still relatively low and GMD will have to prove to the market that they can pull off their intended plan and start producing at Ulysses. This will obviously begin with a series of (somewhat overdue) announcements the first of which I expect to be the drilling results. From there we should, see announcements in the lead up to them actually removing the dirt and beginning to processes it and to extract the gold and making some money. This will, all things working out, lead to a series of re-rates in the stock price and hopefully over the next few years see Genesis becoming a player on the West Australian gold scene.
Of course it is a risk and it could all end in tears but I for one am confident of seeing some concrete results over the next 6-12 months and that Genesis is one of those companies who can pull it off.
GMD Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
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