I am having a close look at GBE, but haven't bought any yet.To...

I am having a close look at GBE, but haven't bought any yet.

To state the obvious, with GBE trading at its cash position, the market is atrributing ZERO value to either its Niobium project, nor its other explorations finds or prospects. It is great value, no argument here.

Even when the Chinese effectively valued the company at $90m+ by buying a controlling interest for $48m, the market still doesn't apply an EV to the share price. The market in its wisdom values GBE at $41m, below its cash position! (And people say the market is always right and finds fair value - what a joke :) ).

What I see as the problem with the share price is two things:

- The Chinese taking a controlling interest effectively kills GBE as a company who may be sold. GBE have committed to be a miner with Chinese backing. So those shareholders with shorter time frames than Q3 2012 have been selling out. And production in 2014 just seems an eternity away for most investors.

- In a weak market, having a Feasibility Study finishing by Q3 2012 just isn't exciting, for retail holders or for instos. Value, in itself, isn't a price catalyst. News often provides a catalyst for new value buyers to enter. But in the meantime such huge value gaps as that found with GBE can persist.


I may well take a stake at some stage in 2012, and do not wish to put a dampener on holders who justifiably think the price should be much higher before then. Those of you with a longer timeframe than the market may well be ahead of the curve on this one. But in the current market, I just can't see GBE being rerated in a hurry, (as wrong as that may be).

I'll check back in in early 2012, probably as a holder. Good luck to all.

Yaq