Hi Riddick, China expects to have over 300m people living in cities within the next 20 years. The movement from rural to congested citylife is attractive to them (ie. necessary) and will ensure the huge continuing demand for IO.
The Chinese metropolitan growth path will certainly have its ups and downs along the way but the long term path is paved in IO!
I read the report the other day too and also noted they do not give much weight (rightly so- at this stage) to the probability of GBG increasing production by acquisition while GBG themselves have outlined this as a strategy.
I'd suggest GBG will reach or surpass the 35mtpa production in 2015 when you consider Lodestone's future contribution and also any acquisitional increases that will surely follow once Karara production (ie. cashflow) is underway.
So their long term earnings estimates for GBG are conservative, but as before, rightly so at this stage.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
