Some interesting discussion going on guys (and some not so interesting mud slinging), but I have to say we should summarise GBG's position:
1. Ansteel have a JV with GBG, they aren't worried about some half informed Eureka Report commentator. To quote from the Ferrets stock to watch post: This (the JV with Anstell) really underpinned the overall project in terms of funding,technical assistance, off-take, sales and marketing.
2. I am glad Eureka "mum and dad" investors are getting out of GBG, much too knee jerk for this stock, like a herd of sheep. Let them go back to their BHP/Rio stock.
The rest is actually inconsequential in some ways really, but if we must discuss then, consider:
2. Hermatite v's Magnetite, well that was discussed by Dryblower in Mining News, following the failed merger. Perhaps time to re-think, GJ was not that forward thinking afterall. The time has come now perhaps? GBG has both bases covered and will merge with SDL (or another player)to give additional hermatite resources, if need be. (I note incidently that SDL's sp is falling still today, so how does one equate GBG's sell-off today to the old hermatite v's magnetite debate). SDL's resources, once proven, will not go ignored for long.
3. The LATEST ANNOUNCEMENT is regarding additional HERMATITE resources.
4. India's demand for IO hasn't even been factored into the demand for IO. This hasn't even been discussed or contemplated, by most analysts, inlcuding Tony. India will grow and develop in the same way China is, without worrying about the old hermatite v's magnetite debate.
5. Riddick's points (although at times emotive) are valid and should be considered by us (and were not argued out by Tim at Eureka). Particularly when Riddick represents the other side of the debate for magnetite (of which there are many believers, the Chinese obviously for one).
6. "Gindalbie, Midwest, and Atlas, are almost certainly over-priced. They will make money from selling haematite, but they will struggle to raise the capital or secure energy at a reasonable price to make the jump to magnetite production. Best advice: sell." GBG have the backing of their JV partner, who in turn have the backing of the Chinese govt (refer again back to the Ferret article) for both processing plant and capital.
7. Environment? Do you think the Chinese are bothered by this? If they were then they wouldn't be building all the coal fired power stations..........
8. Where does Tony from Eureka discuss who in the Chinese market prefers hermatite over magnetite? Nowhere, because at the moment the Chinese aren't bothered by that they just want MORE IO (in any form at the cheapest possible price)!
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
