JP Morgan has released a revised price target for GRR of $0.06 (down from $0.10). I only have the summary on FNArena but it appears that this is based on lower long term IO prices. They question whether GRR will be profitable and whether GRR will be producing positive cash flow.
At $0.06 the market cap is a touch under $70 million. The last quarterly report showed a balance of $140 million in cash (as well as 196K tonnes of pellets and 127K tonnes of concentrate stockpiled). Even if the mines and the stockpiles were valued at zero, I do not understand how JP Morgan can value GRR at less than half the cash in the bank.
I'm struggling to resist the temptation to buy more GRR at current prices (I'd like to see company confirmation that they are cashflow positive first). If the share price ever got to $0.06, I think I'd be throwing everything I have at it.
Broker downgrade
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Last
36.0¢ |
Change
-0.015(4.00%) |
Mkt cap ! $416.6M | |||
| Open | High | Low | Value | Volume |
| 37.5¢ | 37.5¢ | 35.5¢ | $742.1K | 2.043M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 27574 | 36.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 36.5¢ | 49243 | 1 |
View Market Depth
| Last trade - 16.10pm 18/07/2024 (20 minute delay) ? |
| GRR (ASX) Chart |