The key and real numbers impacting GBG are murky at best or ~almost impossible to ascertain.
They disclose some high level summary production numbers but not all.
There is basically no cost information.
There is old, probably outdated, resource and reserve information.
How can you have a ~950 million tonne ore reserve stated and not one whiff of info about how it was estimated?
Hence BBB GBG.
Reading between some lines I reckon that:-
IF, IF, everything went to plan, i.e. on-time planned production and sales, then the farmers money unit cost could be around A$65 - 85 per tonne all up. The operating component of that around $65 - 75/t, and the rest incl capex around $10/t (and I think I'm being kind there....bbbbut how would we know??!!)
SO, if that's about right, then the minimum average iron ore price, including an acceptable margin because we are here to make money I believe, would have to be $100/t or higher to make GBG a long-term business on a going concern basis. That's if everything goes to plan...
Hence: do PIGS FLY? er No, except on UTube.
GBG Price at posting:
2.1¢ Sentiment: None Disclosure: Not Held
