GBE have got a lot going for them:- Valuable niobium project-...

GBE have got a lot going for them:

- Valuable niobium project
- Several rare earth projects being aggressively drilled
- A large cornerstone Chinese investor (ECE) to help fund and commercialise GBE's projects
- Over $40m in cash, above their current mcap.
- On the lookout for acquisitions (in a buyer's market)

GBE is in an enviable position compared to most juniors. And yet, the share price has sunk miserably since the deal with ECE. No doubt this is because in a weak market GBE's timeframes are medium term, and the market is not in the mood for longer term projects. In a strong market positive drill reports shoots a share price upward; in a weak market, they go virtually unnoticed.

So how does GBE increase their share price? Most shareholders are comfortable that GBE is doing all that they can to drive value in the medium term. But what about investor returns in the meantime?

GBE is one of the most compelling cases I have seen for a share buyback:

(1) They are trading well under their cash position
(2) They are trading well under their NTA
(3) Given the Chinese were willing to 40.5 cents per share, and the current share price is 15 cents, GBE is trading way under their 'intrinsic value'.
(4) GBE have an 'excess' of cash. Even with all the drilling expenses, and farm-in deals, GBE have a 'lazy' balance sheet where far too much cash is not being employed.
(5) Are their any better 'investments' for GBE's cash than buying back their own shares at current prices?

What I am suggesting is that GBE should employ a very small amount of their excess cash on a share buyback.

- It would be highly value accretive per share to do so.
- It would increase the liquidity of the share
- It enables anyone who wants to exit to do so, without forcing the share price down further still.
- Even $1m-2m would make a significant contribution to shareholder value, as part of an overall capital management strategy.

Any thoughts from other holders? We have heaps of cash, and an excellent pipeline of projects. The only problem is the company is trading way below its cash position. And GBE is in the rare position of being able to do something about it.

Yaq