Think I've made my views clear on this forum and don't think I have much more to add.
As already mentioned I'll keep buying GBG to try and get my average below 18 cents. Which ever way it goes I'll be in front of the institutions that took placements to discover and build the show. Happy to adopt this strategy and embark the on SS GBG, just as it sets sail on its long and uncertain commercial voyage through the bumpy ocean of the iron ore spot price.
If any of you guys are still here in January 2013, I’ll pop back to see how my 18-25 cents (January) prediction stacks up against reality. Hope the optimistic posters amongst you prove me wrong and good luck to all holders.
One more thought.
Makes me wonder if my target 18 cents per share average also beats Ansteel ‘s entry price.
GBG now has a 47.84% stake in the project and Ansteel a 52.16% stake. Ansteel’s interest in GBG is 36% so Ansteel’s total interest in the project is 69.38%. Now if my calculations are correct there are about 1,490,650,199 GBG shares on issue. One way to figure out how much Ansteel has paid for the project in terms of GBG shares is to remove KML from the equation by converting Ansteel’s 52.16% stake in the project into GBG shares by adding 1,625,257,407 shares (which represents Ansteel’s 52.16% stake in the project) to get a total of 3,115,907,606 shares (the number of shares which would represent 100% of the project if KML didn't exist). Ansteel‘s 69.38% share in the project then converts to 2,161,816,697 shares.
Now how much real money has Ansteel put in ? (not loans or brownie points for organising loans).
Answer: $744.5 million (if I am not mistaken).
Ansteel has therefore paid an equivalent of $0.29 per GBG share for their 69.38% interest in the project.
Great I’ll be well in front of Ansteel as well if I can get my average down to 18 cents.
See you in January.
P.S. This is not investment advice, it is my opinion only. Do not rely on any of it. Please do your own research or seek professional advice to suit your specific investment needs before making any investment decision.
GBG Price at posting:
13.5¢ Sentiment: LT Buy Disclosure: Held
